Posted in: Wrestling

WWE News: Vince McMahon Loses $350 Million In One Day, Could Be Forced Out As CEO

WWE News: Vince McMahon Loses $350 Million In One Day, Could Be Out As CEO

Vince McMahon became a billionaire by growing the WWE into a global powerhouse over the last few decades, but the company’s chairman and CEO reportedly lost much of that fortune in the span of 24 hours.

Now he may be losing much more.

The giant hit to McMahon’s net worth came this week as fears over WWE’s new online streaming network combined with a lackluster new television deal sent the company’s stock plummeting.

The television deal with NBCUniversal to keep hit shows Raw and Smackdown is worth a reported $150 million, short of the close to $500 million some thought the deal could garner. The WWE’s streaming network is also off to a slow start, gaining only 700,000 subscribers.

The WWE will lose between $45 million and $52 million this year, analysts believe, leading to a mutiny among investors.

“In general, WWE investors remain highly skeptical of management,” said analyst Brad Safalow of PAA Research. “Over the past 5-6 weeks the company’s initial Network subscriber numbers and the mark to market on the domestic TV rights fees both fell short of expectations.”

The bad news led the WWE to lose big with investors. The company’s stock dropped 40 percent on Friday, falling to $11 from $20. The big loss meant that Vince McMahon personally lost about $350 million, dropping his net worth to an estimated $750 million.

“The company’s valuation could take a heavy beating this morning, as the new domestic TV deal with NBCUniversal likely disappointed investors,” wrote Benchmark analyst Mike Hickey in a report downgrading the price target for the company’s stock.

The WWE news is devastating for Vince McMahon, whose net worth peaked at $1.6 billion just a few months ago.

There could be more bad WWE news on the way. While Vince McMahon has tried to placate investors in a recent conference call, there are rumors that management changes could be on the way.

There have been signs of trouble for months. Lemelson Capital Management in April recommended that investors short-sell WWE stock and recently announced they had invested in WWE and were calling on the company’s board of directors to replace the executive management team.

After already losing $350 million, WWE CEO Vince McMahon may soon lose his job and possibly his freedom. There is reportedly an investigation being launched to see if WWE executives broke the law when they promised investors they would double domestic television rights fees, but then failed to deliver.

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Comments

131 Responses to “WWE News: Vince McMahon Loses $350 Million In One Day, Could Be Forced Out As CEO”

  1. Dana Green

    Stupid article. WWE insiders hold a majority of the shares. Wont ever happen.

  2. Gerry Turner

    Have you seen John Cena's home? They aren't hurting for money and just because somebody made bad businesses decisions doesn't mean it's Capitalism's fault. Try and own a business in cuba and then tell me Capitalism sucks.

  3. Michael Fitzpatrick

    WWE network sucks! Viewings break up. Can not hear the sound sometimes. Signed up the nigh before wrestle maneia 30 and could not get it on my play station three. Called support and could not get anyone who did not speak clear English and after resigning up still could not get it. Cancelled my order and was told no charge Guess what? Was still billed twice. I had to call my credit card company and they put a block on any more billings. Called support and again all broken English speaking idiots that you could not understand. WWE sucks!

  4. Daniel Kushner

    Dumb article. Vince owns over half the shares. He can't be forced out.

    Further, Lemelson's involvement could be opening them up to stock manipulating, being that they told investors to short, and then bought up huge amounts after the stock price went down.

  5. Nathan Hightower

    All good things must come to an end, and the WWE came to an end years ago!!!!!! At least TNA has some good story lines. lol

  6. Robert Viskil

    So they lose 350 Million (stocks are at $11.00 a share down from $20) so If I buy now 1000 shares and in the next year It goes back to $20 I can make some mean cash! calling my broker…

  7. Keith Wagner

    HOW CAN YOU RUN THE OWNER OUT !!!!! IT was HIS money he lost and i bet they never lost anything

  8. Jason DuBois

    TNA's most recent storyline had them ripping off the Yes Movement. TNA is almost bankrupt and will shut the doors any day now.

  9. Leslie A. McCready

    It's the stockmarket! What is worth 350 million today will be worth 1.6 Billion again tomorrow.

  10. James Tea

    Hi hate to tell you he owns 49% of the Wwe the other 51% is owned by stock holders. So which means he can't be forced out.

  11. Anonymous

    Fire that asshole Triple H and his loser daughter Stephanie. They have done more to destroy his empire than anyone. Thy have no management ability to grow the company whatsoever. They are destroying it. Ungrateful whelps !

  12. Roger Thacker

    He only 49% and stock holders 51% that is how. He can be booted as CEO and that means NONE of his family can not take his place either. Stock holders well decide who become the new CEO of the company.

  13. Roger Thacker

    James Tea umm think you mean he can forced out.

  14. Daniel Kushner

    James Tea Vince McMahon does not own 49%, he currently owns 57% of Class A shares, and 87% of Class B shares, meaning that he has about 81% of voting shares.

  15. Frank Dennehy

    Roger Thacker, fairly certain that once you factor in Vince's, his wifes, his sons, his daughters, and his son-in-laws shares, they collectively own significantly moe than 50%. He is safe.

  16. Keith Wagner

    Roger Thacker Do you work there ? if not how the hell do you know how much he owns,,,

  17. Anthony Townsend

    I hope they get rid of Kevin Dunn and the rest of the anti wrestling Hollywood writers and producers. Maybe then , they'll start using the word "wrestling" again.

  18. Keith Wagner

    Roger Thacker . Vince McMahon owns roughly 57% (39.9 million shares) of WWE's Class A common stock. As of May 2014, WWE is trading at a price per

  19. Richard Symonowicz

    GREED,,,,,thats what killed them,,,,,,,WWE, been going backwards for years and they think there own t.v channel going to help,pushed them back even more,,,there story lines are as old as there show,,toliet bound they go……..

  20. Diamond Down Scotchy

    Vince going to prison for reals is just what the WWE needs to get some fresh stories going. Seriously, promising 500 million then bringing in 150? Talk about shitting the bed.

  21. James Tea

    Frank they own 49% of the Wwe. All Together, the stock holders own 51% of the Wwe. it has been that way for about 5 years or so. So Vince can't be booted outa the company if they choose to.

  22. Gerry Turner

    Joshua Paul Hawkins John Cena will make 2 million on his contract plus the percentages off of merchandise wwe sells that involves him and his brand……Santino Marella won't make that but he is in the 6 figure range. Let me make 6 figures for 4 or 5 years and i'd start my own business when the wrestling doesn't pay the bills anymore.

  23. Daniel Kushner

    James Tea Ok so, you are first, wrong. Just flat wrong. Facts, incorrect. But lets say you are right, and Vince only owned 49% of shares. You think he can't find 1.00001% more voting shares that like him as CEO? Bill Gates only ever had about 29% of shares, and he was unbeatable. You don't understand corporate culture or publicly traded companies if you think 49% is vulnerable, but that doesn't matter, because Vince alone owns 81% of voting rights and way over 50% of total shares based on a combo of Class A and B shares.

  24. Bryan Kole

    Jason DuBois That could very well be true, but i still prefer TNA over WWE. WWE has been quite stale for years.

  25. Anonymous

    McMahon currently has 80.9% of the company's voting power. Stupid people write articles.

  26. Daniel Kushner

    Anthony Paris They are too low. All these stories are just Lemelson trying to bend public perception and keep the price low while they continue to buy cheap.

  27. James Tea

    Hey Daniel doesn't own as much as you think he does. He and his family own 49% of the Wwe.
    Which mean 51% of the Company is owned by share holders. It has been that way for about 5 or 6 years give or take. and when it comes to the voting shares he doesn't own 81% of them because they can remove him as CEO if the Wwe keeps losing money. So he can be forced out of his own company.

  28. Daniel Kushner

    James Tea Dammit dude, I just looked it up, again, he owns 57% of Class A, and 87% of Class B with preferred voting rights, and the blend of the two gives him 81% of voting rights. It's a publicly traded company, you can do this research yourself. I don't know what you heard 5-6 years ago, but it was wrong then, and is wrong now.

  29. Greg Brooks

    Unless Stone Cold gets a new neck and the Undertaker finds the fountain of youth WWF/WWE is never going to reclaim the fame of the past. The current roster will not bring any new fans. The Miz was champ at one point, that lets you know how bad things has become. I read in another article that the WWE hasn't earned nowhere close to what they were making in 2001 when the roster was packed with people that you actually wanted to see.

  30. Darlene St Peter

    So what if some stock market investors decided to sell their shares? Vince McMahon IS the WWE. Force him out and the WWE is dead.

  31. Lawrence Watson

    Hate to break it to the fool who wrote the article, but Vince owns 80% of the stock himself and the McMahon family as a whole controls a vast majority of the company. They'll NEVER dump Vince.

  32. Anonymous

    The behind the scenes storyline is much more compelling then the ones shown on tv.

  33. Mike Hinkel

    Hell I would love to make a 6 figure income. I don't believe WWE performers are hurting monetary wise. If they are, it's their own fault. Before anyone jumps on my comment, keep in mind that I am referring to WWE performers, not all professional wrestlers.

  34. Anonymous

    You shoudlve given them just payback for not speaking clear english, have them try reading your written english to get even.

  35. John Barney

    Worked great for me…. Hooked up my laptop to my tv and bam Wrestlemania 30 on a 60" HDTV.

  36. Dwight Hipp

    This entire procession of events makes for a good wrestling script, but really McMahon Tripple H, and Stephanie have to leave the company.

  37. Marsha Hubbard Keith

    Gerry Turner he got that money from his movie roles I am sure and the whole thing is so fake it ridiculous and how any one could buy into it just really surprises me I thought naieve folks far and in between I guess i was wrong- it all fake and they all laughing their heads off making money off you all

  38. Keyla Baird

    I have no problems with my network subscription. It works better on the Roku than the PS3, But it hasn't been up that long, everything has bugs.

  39. Mike Hinkel

    Marsha – I hate to break it to you, but we know it's fake. It's a soap opera, plain and simple. John Cena gets the majority of his money through his main profession which is wrestling. He has only been in a small handful of movies. You don't know what you're talking about.

  40. Anonymous

    I gradually watched less and less when the "Attitude Era" faded and the WWF became WWE. By mid-2004 i didn't watch at all. So yeah.

  41. Anonymous

    The biggest mistake WWE has ever made was making everything pg rated. WWF made a ton of money because of hulk hogan, iron shiek, sgt slaughter, and steel cage, and bloody matches. Personally, I think WWE should have been out of business when it made the stupid decision to unify WWF,WCW,and ECW.

  42. Doug Ryan

    This comment just gave me a headache in my left eye…

  43. Kenneth Lauture

    The WWE Network works great on my PS3. Are you sure it's not your internet connection?

  44. Mark R. Bowen

    The man loses $350,000,000 and probably won't miss it. I can tell you right now, if I were chairman of the board of WWE, McMahon would be removed as CEO and HHH would be out as COO. This past MNR sucked really bad. They need some fresh ideas and need to stop with the same old crap. Shake it up Vince or hit the bricks!

  45. James A Barnes Jr.

    Marsha Hubbard Keith …Of course everybody knows it's fake and scripted…People aren't paying the money to see it because they believe it's real, they're paying the money for the entertainment. It's like when people pay $10-$15 dollars to go to the Theater to watch The X-Men or whatever the hottest movie release is, they're not paying to see that movie because they believe what they're seeing is real, they're paying to be entertained by a good movie….Geez-us dear, I know you're sharper then that.

  46. James A Barnes Jr.

    Mark Debehnke…People go to work to make money, earn a living to support themselves and their families…Some jobs pay more then others, then there's those selected jobs that only a few are able to obtain and those employers pay rediculously large salaries…The NFL, NBA, MLB…WWE…along with others that I failed to mention, and yes participant accepting those jobs do get hurt….but people get hurt everyday working their jobs because any job you can think of has its own inherited dangers…So here's my question…People that get hurt working at their mundane any day of the week jobs, is that considered…Capitalism…or does that title only apply to people who take jobs making millions.??

  47. Amores Perros

    a CEO needs to handle business, not be on a ring and become a TV character. He either does one or the other, not both

  48. Chris Minato

    Gerry Turner Well John Cena isn't retired yet. There is still time for the system to steal everything he has.

  49. Mike Jones

    There is a reason why WWE as is know now, has been around for 50 years. The McMahon's Did that not the investors, Even though story lines su— , There pay previews is where they make the money, Vince will get his money back and all will be forgot

  50. Rick Hutcheson

    The World Wide Wrestling Entertainment is doing just fine, many sponsors and many stock holders. They do enough charity work outside of their regular on-goings to make a good fortune. People truly do not understand how everything works these days. Trust what is being said "They will be around for a very long time"!!!

  51. Raymond Douglas Brosious

    Really? Vince will burn it down before he walks away. The McMahon's built the company. No way Vince gives it up.

  52. Scott Andrews

    Except Kevin Dunn as been a part of WWE for over 20 years. His father was also part of WWE.

    From their corporate site (http://corporate.wwe.com/company/bios/k_dunn.jsp):

    "In 1993, Dunn was named Executive Producer of all WWE programming, both domestic and international. Through use of the latest television technology, as well as the savvy management of his staff, Dunn has created a production environment that produces six hours of original weekly prime time programming, 52 weeks per year with no re-runs. …He has remained Line Producer of all live WWE telecasts since 1988."

    So, the glory days of the Attitude Era, Dunn was there. Perhaps it would be better to call for the head of someone who is actually responsible for the downward slide.

  53. Waugh's Lawn Care

    This is what happens when put out a crappy product and charge too much during a down turned economy…

  54. Jeff Gerken

    Vince, YOU'RE FIRRRRREEEEEDDDDDD! Just wanted to say that! I hate the WWE.

  55. Ronald Burris

    This is also what You get when You let Management try to be part of the show when they are supposed to be managing. Get rid of Stephanie and HHH and let the Wrestlers get back to wrestling without management interference or favoritism. They also lost big by not having the Wyatts in WrestleMania wrestle the Undertaker, Kane and Sting. They lost out on a big payout letting that one fly over their heads.

  56. Ronald Burris

    No, but they need to dump Stephanie and HHH and get the Wrestlers back to wrestling instead of playing favoritism. Tired of seeing them interfere in matches. How many times does Brian have to wrestle Kane? How many times does Cena have to wrestle the Wyatts? This is getting boring. Wrestling lately has been boring except for a few matches.

  57. Dwight Hipp

    Raymond Douglas Brosious I agree with you there and as majority shareholder how would they get rid of him ?

  58. Jason Eddy

    the stock will hit $7 before $20 it is still way to expensive

  59. James Jensen

    It is perfectly acceptable to read your post before hitting the reply button to ensure it is readable. I will fix it so the rest of us can read it with out it sounding like third world internet dribble in our heads.

    "There is a reason the WWE, as it is know known, has been around for 50 years. The McMahon family built the company not the investors, Even though story lines suck now, the pay previews are where they make their money. Vince will get his money back and all will be forgotten."

  60. Jason Plunkett

    Removing Vince from being CEO would be the stupidest move ever made! The guy knows sports entertainment better than anyone out there and when the competition got close to beating him out (WCW) . Vince went into full outright war mode and eventually bought out the WCW. If the company is to succeed he is the guy that can lead it in the right direction:P

  61. Calvin Stone

    I think triple h sucks and so does Stephanie I hope they lose their butts

  62. Anonymous

    I've been a "wrassling fan" for around 30yrs now. However, once the WWE decided to change direction and go the way of "PG rated" programming i thought to myself enough was enough. It's no surprise to me either that good 'ole Vinnie's stock has fallen as much as it has. But quite honestly it wouldn't surprise me either to see Vince weasel his way out of this latest fiasco. The guy is a MAJOR tycoon and he knows ALL to well how to talk his way out of just about anything. Especially, when his company is facing any form of "negative publicity" etc…I'll go on record right now saying i HIGHLY HIGHLY doubt anything severe will happen to his company regarding all of this bad news. And even in the worse case scenario he is "forcibly removed" from power. His daughter Stephanie and her hubby will be right there to take over "the reigns" without a hitch. That's EXACTLY why they've been grooming Paul Levesque for this position for years now. So i'm quite sure there not to worried about anything at the moment. As much as the media is saying otherwise…(g)

  63. Allen Klein

    good god vince is the daddy of wrestling its his company .you guys dont know shit your all guessing and have no fucking clue all of you get a fucking life

  64. Anonymous

    @…Gerry Turner many of us probably haven't seen his home. HOWEVER, your only accounting for the "top draw" talent. What about ALL of the "lower card" talent that Vince has employed…? These would be the guys/girls that work there asses off and show up to every show because it's mandatory for them to do so. And then wind up never getting used on TV or in a "storyline" because the "script writers" are being FIRMLY told to only utilize mid-top card talent. Perhaps if you and everyone else out there knew what was REALLY going on "behind the curtain" so to speak. You would understand what i'm talking about A LOT more…(g)

  65. David Flint

    I don't think it's so much about ending the streak but why Lesnar? As for the stock plummet, I'm glad to see it. Serves them right for their ridiculous 'feud' between Cena and Wyatt.

  66. Adrian Rouse

    How true. It's one of the reasons I quit watching…..you had popular stars of course, but when it came to the FACE of the franchise……first Hulk Hogan, and then Stone Cold Steve Austin…..even people who didn't watch wrestling knew who they were.

    Nowadays if someone told me who the current champion was, I'd go "Who?"

  67. Patricia Kowalczyk

    NBC is trying to ruin the WWE using media friends period . The WWE "may" lose up to 50 million ? We shall see. They sell out every event and have top rated shows in their time slots. Plus toy ,shirt ,and commercials pay NBC a lot for the time slot. NBC is mad because Vince wanted to get paid and tried to use the new internet deal for leverage but eventually gave in to the 150 mil deal. NBC is trying to ruin the WWE but they aren't going anywhere . Vince owns most of the stock anyway. How about that Lana , she is the hottest Diva in WWE history . New WWE Bolivian superstar starts next week.

  68. Patricia Kowalczyk

    I'm buying 200 + shares at under 10.00 and will sit on them for 5 years. I can see WWE going to 100 a share with boring longer pro sports games with overpriced seats and ref challenges every other play now. Lana is smoking hot and that AJ too , pwew ! The Diva show is gaining new WWE watchers by the 10's of thousands. This is some type of witch hunt because Vince wanted what his show is actually worth and pro sports is already breaking networks with falling ratings.

  69. Rick Beebe

    As much as the product has been garbage for quite a while now, the idea of not having a McMahon in charge is frightening. Especially looking back at how WCW was ran by people who knew nothing about wrestling.

  70. Sherry Meredith

    the reason they are losing moneybecause of stephine ,hhh and kane if they got rid of them three and orth and batista they would make some money

  71. Brian Powers

    We need to see more hard-core matches and need to quit having the good guys win every week….and make the PPVs so obvious, by letting the good guys win most of the time….so boring to watch these days….

  72. Anonymous

    This is not about wrestling. This is about the stock market and speculation. Someone or group is trying to hurt the McMahons, probably because of their success. The product is great; look at the ratings on cable.
    This is a play by Wall Street hustlers who have the power to ruin America's companies. Greed rules here and these analysts or traders are out for themselves and not for the good of the public. Wrestling itself is cyclical and the WWE network is a good idea; look what you can see! I've been a wrestling fan for over 60 years and can tell you this is an excellent product and is worth what it is. Go with your feelings, you know this to be true!

  73. Thomas LeDoux

    This article is full of fiction and appears to be nothing more than a plight to drive stock prices down even more, thereby making it even more affordable to purchase the stock at ridiculous prices.
    The WWE Network has been working very well when compared to anything else streaming on the internet. Yeah, it had its bugs at first but most have been worked out and even when my computer is running very slow at peak times, the WWE Network still seems to operate just fine and it seems to be getting better and better every day, including the archived ( on demand ) programming…
    Vince McMahon will make the necessary changes needed with executive management, creative and programming in all areas, even if some of those changes seem radical to many of us. $11.00 stock is a BARGAIN, considering the recent changes ( WWE Network ) already made and will almost certainly go up, almost overnight but investors don't want you to think that way and probably had a great interest in the making of this article. When you wake up tomorrow morning the WWE will still be in a full swing business mode and the show will go on no matter what the stock is selling at but right now at $11.00 per share, it's a BARGAIN, especially in the wane of adding all of the international subscribers who will likely drive the price of stock up considerably and much more securely but change are needed with "creative programming" badly and it's going to happen, even if it involves removing a family members from the executive positions and that, my friends, is "what's best for business"………..

  74. Cathy Ba

    Since HHH and his wife have been getting into things they have ruined it, I don't like watching it anymore.

  75. Todd Enrico

    Gerry Turner John Cena is at the top of the heap. The mid and low carders aren't nearly that well off.

  76. Michael Massey

    Just like I any business, some will make it big, some will do fine , others will end up on he streets. It does depend on the person themselves, too . Some are smarter than others and know how to save their money, some aren't. Then there are the wrestlers that never make it to the "big league" . The thing is this, there isn't a person who will give away the money and say " well, give 3/4's of my money to the other that aren't making it " . We know that is boloney . .

  77. Gabriel JagerBomb Reid

    If I had 750 MILLION dollars like Vince McMahon, I would give EVERY American 1 million dollars. Lets see, 750 million minus 316 million leaves me a cool 434 mil to struggle with…. Debt ceiling comes crashing down, the FED is instantly crippled, inflation does NOTHING as no "new" money is created, and the IMF gets its ass handed to them on a global scale when our interest driven global economy gets kicked in the special place.

  78. Steven Lucas

    No chance in hell – that song – that he's out as ceo when he owns the overwhelming majority of stock.

  79. Anonymous

    I paid the fee a few hours before WM30 via itunes and watched it on my Apple TV..worked great!..I also see it on my Ipad with no real problems.
    You need to check your internet my friend :-)

  80. J Craig Colbeck

    anyone sending comments that the "booking" i.e. Undertaker losing, as reason for the financial disaster would be an idiot!!! Its the programs,their distribution and access (or lack there of like pulling PPV'S from DISH/DIRECT in hopes to get people subscribe to poorly conceived network idea) or more importantly promising numbers on revenue streams and not getting HALF of those numbers are the real culprits

  81. Vicki Edwards

    Just needed to end the streak in a respectable manner, and then bring on the Undertaker as a major player in any thing he wanted to do in WWE.. it would of pie Cherry on pie!!!

  82. Christopher Nelms

    Nathan Francis, perhaps you should learn some rudimentary research skills before post pointless drivel like this online for everyone to mock. As others have pointed out, Vince McMahon owns a controlling percentage of stock in the WWE, it is literally impossible for him to be "forced out" unless he fires himself. Critical thinking is a skill, man…

  83. Anonymous

    It worked for my PS3……I got WWE Network on the the day it started. i was surprised that it I didn't have any issues at all. I also like that my whole family can watch it all at the same time without having to get a another account for each system that we have. I have it on my Galaxy Note2, my bother has it on his Galaxy Tab, and we also downloaded it on the PS3 and we can all watch it at the same time. The only problem I have is that for some reason, I can't watch it on my tablet, which is an Asus 10inch Android Tablet with 16gigs of space. I think it is because my tablet isn't of the same quality as my brother's Samsung Galaxy Tab. But, I am gonna get a better tablet so I can watch it on there. The only reason I got WWE Network was for the PPVs. But anyway, I realize that I am rambling on and on about nothing on someone else's post, so i'm gonna just shutup…..LOL

  84. Edward Frotten

    the line up of fools idiots & wanta be's ,, time for pedro morralis & george the animal steele to come out of retirement – i'd rather watch old matches – jake the snake- Barron c- then this pure garbage crew mcmahon has-other then the big show-or triple h- they rest r lamer then doink the clown

  85. Andrew Meyer

    It really does feel like every Monday night is basically the same as the previous week. He is right…they need to shake it up. I'm not CEO, but I also haven't lost any money from my decision making. :)

  86. Matthew Matlock

    Ronald Burris Oh no! Constant interference? Fighting over and over? Sounds like they're trying to tell a story of some kind! Heaven forbid…