As part of their latest SEC filing, WWE has explained how they missed private payments made by Vince McMahon that should have been recorded.
On July 25th, WWE announced that it would be reissuing company financial statements for 2019, 2020, and 2021, as well as Q1 of 2022.
The move came after the company uncovered payments worth $14.6 million made by Vince McMahon which should have been declared as business expenses. McMahon had announced his retirement from WWE just days earlier, as allegations of sexual misconduct and hush money payments engulfed the now former WWE Chairman.
In an SEC filing on Tuesday, August 9th, WWE confirmed the discovery of two further payments totalling $5 million. The payments were made in 2007 and 2009, although WWE has not disclosed what the payments were for.
The filing also detailed how the company missed the unrecorded payments made by Vince McMahon as below:
“We did not maintain effective risk assessment based on the criteria established in the COSO framework which resulted in deficiencies in principles associated with risk assessment. Specifically, these control deficiencies constitute material weaknesses, either individually or in the aggregate, relating to: identifying and analyzing risks to the achievement of objectives across the entity.”
The full report also explains how they will deal with the risks and loopholes they have identified.
The report also indicates that the WWE Board’s investigation into Vince McMahon is “substantially complete”.