Vince McMahon Secures WWE Cash Injection
Vince McMahon is currently going through the process of taking steps to provide WWE with extra liquidity as we progress through an extremely difficult time for his business.
Seeking Alpha has noted that the WWE Chairman filed an 8-K form with the Securities and Exchange Commission on Monday, with Vince pledging roughly 3.5 million of Class B WWE stock via "variable prepaid forward contract." He has done this to help keep the promotion moving along in a difficult economic climate, with the writeup stating that the move increases liquidity while protecting McMahon's voting and dividend rights.
The contract has a settlement date of March 2024. At that point, a number of Class A shares will be issued to Vince depending on their price on that date. It is also noted that McMahon will continue as WWE's Chairman and CEO indefinitely - as if that was ever in doubt.
WWE's massive TV contracts gives them greater protection from the current crisis than any other promotion, though their finances will still take a hit over the coming weeks and months. They're in a fortunate position, but that isn't stopping Vince from shoring WWE's liquidity up.