Posted in: Sports, TV, WWE | Tagged: tko, Vince McMahon, wrestling

Vince McMahon Resigns from WWE, TKO Amidst Scandal (Again) [UPDATED]

For the second time, Vince McMahon has resigned from WWE and TKO amidst a sexual misconduct scandal that just cost the company a major sponsor.

For the second time, Vince McMahon has resigned from the wrestling company his family founded and has controlled for six decades, amidst a sexual misconduct scandal that cost the company a major sponsorship on the eve of the Royal Rumble and shocked the world with disturbing allegations of sexual assault and sex trafficking published in a lawsuit filed by former WWE employee Janel Grant naming McMahon, former WWE Head of Talent Relations John Laurenitis, and WWE as defendants. Deadline broke the news and published a statement from McMahon denying the allegations while confirming his departure as Executive Chairman of the Board of WWE parent company TKO.

I stand by my prior statement that Ms. Grant's lawsuit is replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth. I intend to vigorously defend myself against these baseless accusations, and look forward to clearing my name.

However, out of respect for the WWE Universe, the extraordinary TKO business and its board members and shareholders, partners and constituents, and all of the employees and Superstars who helped make WWE into the global leader it is today, I have decided to resign from my executive chairmanship and the TKO board of directors, effective immediately.

McMahon's resignation follows the first public statement about the scandal from a major WWE sponsor, Slim Jim, which paused its partnership with WWE in the wake of Thursday's lawsuit. In a statement issued to several media outlets confirming a report from WrestleVotes, Slim Jim announced a pause of their partnership with the sports entertainment conglomerate, leaving open the possibility of future reconsideration.

Slim Jim values integrity and respect in all of our partnerships. At this time we've decided to pause our promotional activities with WWE. This decision reflects our commitment to our brand values and responsibility to our community. We will continue to monitor the situation and base our future engagements on our values and what's best for our brand.

Slim Jim has a history with WWE going back decades, with the now-iconic Macho Man Randy Savage "Snap Into a Slim Jim" ads forever associated with the processed meat sticks. In recent years, Slim Jim has increased its involvement with WWE, sponsoring a Battle Royal at SummerSlam last year and paying for prominent ads and product placement, including a revival of the Macho Man campaign featuring LA Knight and Bianca Belair.

This marks the second time McMahon has been forced out of WWE amidst the same ongoing scandal. McMahon was forced to temporarily retire in 2022 after news broke that the company's board was investigating McMahon for hush money payments made to silence sexual misconduct claims. Those payments totaled millions of dollars to multiple accusers, including Grant and former WWE referee Rita Chatterton, who accused McMahon of sexual assault in the 1980s, amongst others. However, McMahon returned in 2023, using his power as controlling stockholder to reinstate himself and put the company up for a sale. The eventual buyer was Endeavor, parent company of UFC, which merged the two companies to form TKO and made McMahon Executive Chairman of the Board. However, McMahon lost his position as controlling stockholder in the deal.

In the wake of Thursday's allegations, TKO issued the following statement:

Mr. McMahon does not control TKO nor does he oversee the day-to-day operations of WWE. While this matter predates our TKO executive team's tenure at the company, we take Ms. Grant's horrific allegations very seriously and are addressing this matter internally.

McMahon himself also responded to the allegations via a statement from a spokesperson:

This lawsuit is replete with lies, obscene made-up instances that never occurred, and a vindictive distortion of the truth. He will vigorously defend himself.

McMahon's scandal overshadows recent gains such as a new long-term television rights deal for WWE Raw with Netflix announced earlier this week, as well as tomorrow's Royal Rumble event, one of the biggest of the year for the company. A federal investigation of McMahon related to the payments scandal from 2022 remains unresolved.

UPDATE: Following McMahon's resignation Friday night, Slim Jim unpaused its partnership with WWE Saturday morning, issuing the following statement:

After the departure of Vince McMahon, and discussions with WWE TKO senior leadership, Slim Jim has decided to re-enter the Royal Rumble.

UPDATE #2: Appearing on the Law and Crime podcast, Ann Callis, attorney for Janel Grant, issued the following statement on Grant's behalf in response to McMahon's resignation:

She hopes any doors of secrecy have been blown off their hinges and that fresh air fills the headquarters, and she hopes those at the company, past and present, who fear speaking out about harm is a thing of the past. She wishes everyone peace.

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