WWE News: Stockholder Suing The Promotion For Diverting Resources To The XFL
In less than two months, Vince McMahon will step out from behind the world of WWE and revive the XFL to bring fans more professional football. The league already had one run many years ago and failed, but Vince believes it can actually thrive and be successful. Unfortunately for him, one WWE stockholder believes that the wrestling company is diverting resources to the football league and has filed a lawsuit to find out the truth.
Back in 2001, the XFL had one season of combining wrestling and football before closing its doors with many expecting never to see it again. All of a sudden in 2018, Vince McMahon announced that the league would be returning, and he planned to begin play in its second season in February of 2020.
The new season will begin when the NFL finishes its current year with the Super Bowl, but there is already some trouble for the XFL. According to Bloomberg Law, a lawsuit has been brought against WWE by a World Wrestling Entertainment Inc. stockholder in order to see the internal records of the company.
A report from Ringside News states that the stockholder wishes to see the internal records of WWE to see what ties it has to the XFL. The lawsuit states that there is a belief WWE has been using resources to fund the XFL and get it going in its new inaugural season.
The lawsuit was filed on December 26, and the stockholder wants to make sure that Vince McMahon and other senior officers in WWE kept the company’s resources. They specifically want to know that the resources of the wrestling promotion have been kept within that company and not used for the football league.
Vince McMahon has publicly said for the last two years that the XFL and WWE will be kept entirely separate unlike the first season back in 2001. This time around, the focus of the XFL will be football while the focus of WWE will be wrestling with no plans to mix the two companies.
The stockholder says in the lawsuit, though, that there is “a credible basis to believe” that the higher-ups in WWE breached their duties to investors. It is believed that “valuable resources” have not been used for WWE and have been diverted to the production of the XFL.
With this lawsuit, investors are hoping to accomplish the unlocking of WWE internal documents so they can see where monetary assets are flowing. The lawsuit was only recently filed which means there likely won’t be any ruling on it for quite some time.