Investigation looking into McMahon $3M ‘hush’ settlement with former employee

The Board of Directors is investigating a secret $3 million settlement to a former employee with whom Vince McMahon had an alleged affair per a report by the Wall Street Journal. The report indicates that the paralegal was hired by the WWE in 2019 and signed a 2022 separation agreement with the company which prevents her from discussing her relationship with McMahon or disparaging him.

The investigation by the Board of Directors began in April and has uncovered other nondisclosure agreements involving claims by former female WWE employees.  The report also implicates John Laurinaitis of similar misconduct.  The investigation has preliminarily found that McMahon used personal funds to pay the former female employees including the one with Lauranitis. 

Payout Perspective:

The key thing in the report is that McMahon paid out of his personal funds which likely prevents any civil exposure from shareholders. Still, at a time when the rumors of the company being sold is ongoing, the news hurts the public image of the WWE as it caters to a more ‘family-friendly’ type of entertainment.  The settlements cannot be a surprise considering the past misdeeds of McMahon and the inherent toxic culture of pro wrestling in the 20^th century.  It’s unlikely that this will lead to the end of McMahon unless he decides he is done with the company.