INTERNAL REACTION TO VINCE MCMAHON'S TKO & WWE RESIGNATION, WHERE THINGS STAND WITH THE JANEL GRANT LAWSUIT AND LOTS MORE
By Mike Johnson on 2024-01-29 09:10:00
Obviously, the major news surrounding WWE is the Vince McMahon resignation, stemming from the Janel Grant lawsuit filed against him, John Laurinaitis and WWE. PWInsider.com can confirm that electric summons for all three defendants were issued on 1/26 by The U.S. District Court, District of Connecticut (New Haven). Each Party would have 21 days to respond once it is confirmed they are served, although they could petition the Court and ask for additional time. As of this AM, none had been recorded by the Court as having actually been served.
McMahon likely would have dug in and refused to walk away from his TKO Board of Directors Executive Chairman position, but once Slim Jim, who holds the largest sponsorship deal in WWE history, was willing to cut their losses and "pause" their WWE relationship, it was just a matter of time before other advertisers and sponsors followed suit, and that was it for McMahon. As one source noted on Friday, once true money was in real danger of being lost, "it was just a matter of time" but that the timetable for McMahon resigning happened faster than anyone truly expected.
As we reported Friday on PWInsiderElite.com after the news broke that McMahon had resigned, the initial response internally in WWE among staff and executives that PWInsider spoke with was a mix of relief and happiness. There were some who felt that McMahon got what was coming to him based on the allegations in the lawsuit filing by Grant. There were also some who were glad McMahon was now distanced "officially" from the company, as he was, as one source commented, "a black cloud hanging over everything even though he wasn't involved in anything" anymore.
McMahon had not been in charge of WWE Creative for some time and his role in the company was more ceremonial then anything else in 2024. Now, that has ended as well. As PWInsider.com has noted previously, McMahon no longer holds the majority stock post-WWE sale to Endeavor so the "magic bullet" that allowed him to force his way back into power last year cannot be repeated. While he obviously still maintains (and can maintain) a piece of ownership, he has no path back to even a ceremonial, much less corporate role unless Endeavor deems him worthy of returning. While you never say never, it's looking like that would be an impossibility give how advertisers and sponsors would react and how many media outlets continue to churn out stories about the situation.
There should be some official SEC filings this week regarding McMahon's exit from TKO Group's Board of Directors that should provide additional clarity.
There were some in the company on Friday evening hoping that Vince's exit opens the door for Stephanie McMahon to return, although others we spoke to cautioned that it's not the same company that existed (internally) before Endeavor took over ownership so how she might potentially fit back in would not be immediately known - nor would it be known if she's even be interested in returning at this point. WWE President Nick Khan has always publicly stated the company would love to have Stephanie back and among the employees, she's just much missed and respected - but post-sale, it's a different world there.
Vince McMahon's last visit to WWE HQ would have been the all hands on deck meeting in Stamford, CT on 1/23 that saw Nick Khan, Paul Levesque and The Rock address WWE staff. During that meeting, Levesque had joked that McMahon was sitting in the gorilla position backstage watching over everything. That date may prove to be the last time McMahon was physically inside a WWE building.
On Friday, there was also a belief (and depending on who you are, perhaps a concern) internally that Endeavor might seek to sweep out anyone close to Vince McMahon and whatever remaining support team he still had in place in order to have a complete "fresh start" for the company going forward. There were employees who exited the company when Vince initially resigned that were part of his personal team who returned when he forced his way back in. For those that have remained with WWE post-Endeavor purchase, the belief among those we've spoken with is that a connection to McMahon may be a major negative going forward for their WWE status. There are a lot of people waiting to see how this shakes out in the days ahead.
As one source noted to me this morning, "if anyone believes for a second" that Endeavor owner Ari Emanuel wanted to discover the type of allegations brought forth in the Janel Grant lawsuit, not just about a company he purchased - but a company that has been employing his own daughter at WWE HQ for several years - they "don't know Emanuel" and they don't understand how "ferociously he will eradicate" anything that needs to be taken care of to protect his businesses. The same source noted that if Emanuel was willing to walk away from Saudi Arabia investments years ago without "blinking an eye", he'll have no problem "removing anything and anyone still remaining" that could potentially hurt or impact WWE's business going forward.
The reality is, as anyone who works for WWE now will privately attest, it's not the same company it was before Endeavor took it over. Not from a culture perspective. Not from a corporate perspective. That truth has pained some who work there (and some who have departed) since Endeavor took over, because the world there changed. But, that also means there's not going to be a protection for anyone just because they were in Vince McMahon's - or anyone's - inner circle. That's not how the company operates. Not anymore.
Whatever fallout is still to come from this situation - from a legal or corporate standpoint - we'll update as it is confirmed, because this story is far from over.
