WWE’s Vince McMahon Investigation Ended Up Costing $19.4M In Expenses

The WWE, led by co-CEOs Stephanie McMahon and Nick Khan, handily beat Wall Street expectations on revenue in its third quarter, delivering net revenue of $304.6 million, and operating income of $58.9 million.

The bump in revenue was “primarily due an increase in both domestic and international media rights fees related to the Company’s flagship programs, Raw and SmackDown,” the company said.

Indeed, the majority of the revenue, some $233 million, came from media rights, with live events accounting for $35.2 million, and consumer products $36.4 million.

But while many entertainment companies are beginning to lower expectations for the rest of the year amid an uncertain economic environment, the WWE appears bullish on its prospects, telling investors that it now expects full year 2022 Adjusted OIBDA to be at the “upper end” of its $370 million – $385 million range from just a few months ago, including fourth quarter 2022 Adjusted OIBDA of $83 million – $90 million.

In its earnings report, the WWE also provided an update into the board investigation into former CEO Vince McMahon. McMahon retired amid the probe back in July, but he remains the company’s controlling shareholder.

“The Special Committee investigation is now complete and the Special Committee has been disbanded,” the company said in the earnings report. “Management is working with the Board to implement the recommendations of the Special Committee related to the investigation.”

The company says it spent $17.7 million on costs associated with the investigation in Q3, and $19.4M so far this year.