Vince McMahon tells WWE staff that Paul Levesque will remain in charge of creative process

Vince McMahon has sent an internal email to WWE employees stating that Paul Levesque will retain his position as head of creative.

On the heels of the Endeavor/WWE deal, sources have told POST Wrestling’s John Pollock that the email contains the line: “Paul Levesque will remain WWE’s chief content executive.”

Earlier, during an interview on CNBC, McMahon was asked by Scott Wapner whether he planned to be “as involved in the creative side as he has in the past.”

McMahon replied:

Yes and no. On a higher level, yes. In the weeds — which I always loved to get into the weeds in the past — no; can’t do that.

Back in 2019, after McMahon appointed Paul Heyman and Eric Bischoff as Executive Directors of Raw and SmackDown respectively, McMahon used similar language, saying that those two hires freed him up:

“to look at longer range story arcs and work on character development, versus being in the weeds”

An all-employee Zoom meeting for WWE staff has been arranged for 4.00 pm ET.

Triple H and Nick Khan To Receive Huge Bonus Following WWE Sale

WWE's Nick Khan and Triple H will receive a huge bonus following the news that WWE has been sold to Endeavour.

On Monday, WWE announced a transaction agreement with Endeavor that would see WWE sell to Endeavor and merge with UFC to form a new publicly traded company worth $21.5 billion. Khan will be President of WWE when the two promotions merge, while Triple H is expected to remain Chief Content Executive of WWE.

Triple H and Nick Khan will both receive large bonuses with Triple H taking in $5 million and Khan receiving $15 million.

From the SEC filing:

"In light of their significant contributions to the Company prior to and in connection with the Transactions and to promote retention, the Company, following the approval of the WWE Compensation Committee, entered into bonus letter agreements (each a “Bonus Agreement”), dated as of April 1, 2023 and effective as of April 2, 2023, with certain executive officers including Nick Khan, the Company’s Chief Executive Officer, Frank A. Riddick III, the Company’s President & Chief Financial Officer, and Paul Levesque, the Company’s Chief Content Officer. The Bonus Agreements each provide for a cash payment (the “Bonus”) in the event a Sale Transaction (as defined in the Bonus Agreements) is consummated on or before February 28, 2024 (unless such date is extended by the Company’s Board of Directors, in its discretion) (a “Qualifying Sale Transaction”).

For Messrs. Khan and Levesque, the amount of their Bonuses is equal to $15,000,000 and $5,000,000, respectively, with 100% of such amount payable as soon as practicable following the closing date of a Qualifying Sale Transaction, subject to their continuous employment through the closing date (except as otherwise noted below). For Mr. Riddick, the amount of his Bonus is equal to $5,000,000, with 60% of such amount payable as soon as practicable following the closing date of a Qualifying Sale Transaction and 40% of such amount payable as soon as practicable following the six-month anniversary of the closing date of a Qualifying Sale Transaction, subject to his continuous employment through each such date (except as otherwise noted below). In the event any of Messrs. Khan, Riddick and Levesque is terminated by the Company without Cause or resigns for Good Reason (each as defined in the applicable Bonus Agreement) prior to the payment date(s) described above, the unpaid portion of his respective Bonus shall vest and become payable as of the date of termination.

The foregoing description of the Bonus Agreements does not purport to be complete and is qualified in its entirety by reference to the full text of the Bonus Agreements for Messrs. Khan, Riddick and Levesque, copies of which will be filed as exhibits to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and which will be incorporated by reference herein."

Most Successful WrestleMania Of All Time

WWE today announced that WrestleMania 39 became the most-successful and highest-grossing event in company history. The two-night, sold-out event at SoFi Stadium in Los Angeles set new records for viewership, gate, sponsorship, merchandise and social media. WrestleMania 39 became the most social WrestleMania of all-time, with over 500 million views and 11 million hours of video consumed over the two days, a 42 percent increase over last year. Night 2 of WrestleMania 39 surpassed the existing global viewership record by 33 percent, just one day after Night 1 of WrestleMania 39 surpassed the existing global viewership record by 28 percent. WrestleMania 39 generated a gate of more than $21.6 million, breaking the previous record by 27 percent, with 161,892 in attendance at SoFi Stadium over the two nights. In addition, WrestleMania 39 broke all-time sponsorship and merchandise records. Sponsorship revenue eclipsed $20 million, more than doubling the previous record. Merchandise sales were up 20 percent versus the record set in 2022.

ENDEAVOR ANNOUNCES UFC® AND WWE® TO FORM A $21+ BILLION GLOBAL LIVE SPORTS AND ENTERTAINMENT COMPANY

BEVERLY HILLS, Calif. & STAMFORD, Conn.--(BUSINESS WIRE)-- Endeavor Group Holdings, Inc. (NYSE: EDR) (“Endeavor”) and World Wrestling Entertainment, Inc. (NYSE: WWE) (“WWE”) today announced that they have signed a definitive agreement to form a new, publicly listed company consisting of two iconic, complementary, global sports and entertainment brands: UFC and WWE. Upon close, Endeavor will hold a 51% controlling interest in the new company and existing WWE shareholders will hold a 49% interest in the new company.

Together, UFC and WWE will have global reach, impressive scale and omnichannel distribution. On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of $2.4 billion and a 10% annual revenue growth rate since 2019.

“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” said Ariel Emanuel, CEO of Endeavor. “For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”

“Given the incredible work that Ari and Endeavor have done to grow the UFC brand – nearly doubling its revenue over the past seven years – and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders,” said Vincent K. McMahon, Executive Chairman of WWE.

McMahon continued, “Together, we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity. The new company will be well positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands. I, along with the current WWE management team, look forward to working closely with Ari and the Endeavor and UFC teams to take the businesses to the next level.”

The new company will be led by Emanuel (Chief Executive Officer), who will also continue in his role as Chief Executive Officer of Endeavor, McMahon (Executive Chairman of the Board) and Mark Shapiro, who will be President and Chief Operating Officer of both Endeavor and the new company. Dana White will continue in his role as President of UFC and Nick Khan will serve as President of WWE. The Board of Directors will consist of 11 members who will be appointed at a later date, six of whom will be appointed by Endeavor and five of whom by WWE.

WWE reportedly close to sale to Endeavor

World Wrestling Entertainment is reportedly closing in on a deal to be sold to talent-agency company Endeavor Group Holdings (NYSE:EDR), already the parent of mixed martial arts league Ultimate Fighting Championship.

The sale is in advanced talks, CNBC reported, and it could be announced as soon as Monday.

It would result in a new publicly traded company focused on combat sports and entertainment, according to the report, and Endeavor would own 51% while WWE holders would own 49%.

The proposed transaction would reportedly assign WWE an enterprise value of $9.3B. WWE has a market capitalization of about $6.8B.

It would also mean the end of Vince McMahon's control of WWE after several decades.

Recent weeks have brought increasing sale speculation and WWE CEO Nick Khan said last week the company had seen "robust" interest.

source: seeking alpha

Vince McMahon’s Unusual New WWE Contract Gives Him the Right to Adapt His Own Story For Film

WWE executive chairman Vince McMahon is in line for a multimillion dollar payout on top of his $2.6 billion stake — and the rights to his life story — in the event that his company gets sold.

McMahon signed a new employment agreement with the company this week, retroactive to when he returned earlier this year, and the WWE filed it with the Securities and Exchange Commission on March 30. While it’s mostly a pretty standard deal, the clause about McMahon’s potential payout in the event of a sale is notable, given that his return was precipitated in part on putting the company on the market. And a clause about McMahon’s “Life Story,” are unlike just about anything you would see at another company.

When a public company gets sold, and a senior executive gets shown the door after the sale, it’s common for them to receive a generous severance package (they are sometimes called “golden parachutes”).

Most of the time, however, those agreements don’t include the rights to make a miniseries about your life.

McMahon’s new contract runs for two years (the annual compensation package is valued at $7.6 million), with the right to be extended in one year increments after that. However, the company is on the market, and may get sold this year. WWE CEO Nick Khan told CNBC last month that McMahon is “100 percent open” to selling to a company that decides it doesn’t want to keep him around.

According to the employment agreement, McMahon would receive a $6.8 million lump cash payment in the event of a sale, plus a pro-rata payout of his incentive bonus for the year (potentially another $2.1 million). He will also see all unvested shares vest, likely delivering a $4.3 million payout if a deal closed this year.

In other words, McMahon would receive at least $11 million in the event of a sale, with additional compensation likely depending on timing and share price.

Of course, Vince McMahon is also the majority shareholder of the company, so his severance package is pocket change compared to what his equity would be worth in a sale. According to the WWE’s latest proxy filing, McMahon would receive a payout in the ballpark of $2.6 billion if the WWE sold at its current $90.60 share price (as of writing).

Earlier this month McMahon actually paid the company $17.4 million for costs it incurred related to its misconduct investigation of him, so most likely his severance payment wouldn’t even cover those costs.

But it is the section about the “McMahon Intellectual Property and Life Story” that is unusual for an employment agreement like this one. McMahon has run the WWE for decades, and has long appeared in the ring as a performer (his stage name is “Mr. McMahon”), and the agreement guarantees him (and his successors) the right to his own IP, while he gives the company the right to use his IP on a non-exclusive basis. His previous employment agreement granted the company rights to commercial works based on his life.

“The Company further acknowledges and agrees that McMahon will have the exclusive right to communicate, convey, commercialize, license, or otherwise exploit his life story … including without limitation any books (memoir, biography, autobiography, etc.), articles or essays, audio recordings, audiovisual works (documentary, biopic, scripted program, dramatization, fictionalization, etc.) (the ‘Life Story Rights’),” per the contract.

In addition, the company waives any claims “relating to confidentiality, non-disparagement, non-competition, or other restrictive covenant or affirmative undertaking binding on McMahon that results from any content, communication, or action in connection with any exercise of the Life Story Rights and any embodiments thereof.”

In other words, McMahon would have wide leeway to tell his story without fear of a lawsuit from the WWE.

While McMahon has not appeared on any WWE programming since returning in January, and while his son-in-law Paul Levesque (stage name: “Triple H”) is currently running WWE creative, McMahon’s contract leaves open the possibility that he could perform on-camera or work on the creative side of the business again, and gives the company full right to those works.

The contract gives the company the rights in perpetuity to “McMahon’s writing, appearances, performances, and creative director work product, the Events, and the Footage… (including without limitation all storylines, incidents, dialogue, characters, actions, routines, ideas, gags, costumes or parts of costumes, accessories, crowns, Inventions (as defined below), championship, title or other belts (if applicable), and any other tangible or intangible materials written, composed, submitted, added, improvised, or created by or for McMahon in connection with his appearance at the Events and/or in the Footage),” during his tenure as executive chairman.

Tim White to be posthumously inducted into the WWE Hall of Fame Class of 2023

Potential WWE Buyers May Want To See Stephanie McMahon Return

As reported earlier, on CNBC's "Squawk On The Street" Financial reporter David Faber, revealed that WWE sales talks are "going quite well" and there are several interested parties, including Endeavor, Liberty Media, and the Saudi Arabia Public Investment Fund. Like Faber, WWE's CEO Nick Khan also shared a positive outcome for WWE. As reported earlier today, Khan said to the Sports Business Journal, that he thinks that WWE is "in a good position."

Fightful Select has shared more insight behind the potential WWE sale and those who are interested in the company. One insight is that business is supposed to "pick up," due to WrestleMania being in Los Angeles, California. Numerous sources that are related to the list of rumored buyers, reportedly told Fightful that they are interested in having Stephanie McMahon return. Stephanie of course stepped down as the co-CEO of WWE back in January, which made Khan the sole CEO of WWE. A source from Disney noted how "the companies are following the news cycles and are aware of what makes the audience and staff happy." Stephanie seemed to have brought a lot of positives to the company. 

Fightful also spoke with multiple sources within Comcast, though it's worth noting that CNBC in the past has stated that Comcast was not interested in buying WWE. The sources within Comcast revealed that even though they had a relationship with Vince McMahon through NBC and USA Network — there is "no desire" to keep him involved in WWE. WWE's media rights deal with Comcast also is up in 2024. 

WWE’s WrestleMania extravaganza draws sponsors to the ring

WWE’s WrestleMania, the Super Bowl for the sports entertainment company, arrives this weekend to a massive audience and vastly larger sponsorship revenue as it seeks to establish itself as a serious contender for major dollars from such partnerships.

Craig Stimmel, WWE’s senior vice president and head of global sales and partnerships, told The Associated Press in an interview that sponsorship revenue for this year’s event has doubled to more than $20 million, a record for any WWE event.

Those numbers are critical in light of the return in January of Vince McMahon, the founder and majority shareholder of WWE, who said the sports entertainment company could be up for sale...More?

source:  apnews.com

WWE CEO Nick Khan Comments On WWE Media Rights Negotiations

As rumors and reports continue to surface regarding WWE‘s media rights negotiation and a potential sale, WWE CEO Nick Khan spoke to Sports Business Journal about the company’s position heading into negotiations.

On the topic of the company and its position as it heads into a new round of media rights negotiations, Khan said that he thinks the company is “in a good position” thanks to its ratings and its relevance, Khan also noted that he thinks they could come to a decision toward the middle of the year.

“If you look at the ratings and relevancy of our product, we like to think we’re in a good position,” said Khan. “We look to get into the heat of the conversation first with our incumbents by the middle of the year or so. Depending on the timing and how strategic alternatives shake out, it will be either be middle of the year getting hot and heavy, or some time shortly thereafter.”

When it comes to competing against the likes of NASCAR and the NBA — which will also see its own media rights come up alongside WWE — Khan said that he thinks “there’s plenty of money out there for us.” He also touched on the potential sale of WWE, noting that it might be tricky navigating both a sale of the company as well as new media rights negotiations.

“That’s probably the trickiest of all the parts, but one thing that all potential buyers know is that the rights that Fox and NBCU negotiated for separately will obviously have to be adhered to and respected with all sorts of good faith attached to that,” Khan said.

Stacy Keibler announced for WWE Hall of Fame, Class of 2023

WWE receives $17.4M from McMahon for investigation costs

Executive Chairman Vince McMahon has paid World Wrestling Entertainment (NYSE:WWE) $17.4M to reimburse the company for costs it incurred in a special committee investigation, and related matters including revising financial statements.

In an SEC filing, WWE noted it's received the $17.4M payment in accordance with a March 20 agreement, and that McMahon will review in good faith and reimburse the company for additional connected costs beyond Jan. 31, 2023.

WWE last year launched a board investigation into a secret $3M settlement between McMahon and a departing employee with whom he had allegedly had an affair - and the probe expanded in scope as more allegations were reported.

McMahon stepped down from the CEO and chairman roles at the company, planned to retire, and later returned to reclaim the role of chairman.