Vince McMahon sells nearly $272M in WWE shares as he continues to fund XFL relaunch
Vince McMahon made the biggest stock sale to date in his quest to personally fund the XFL, set to be relaunched in February 2020.
McMahon, the CEO and majority shareholder of the WWE, sold nearly $272 million in stocks, per an SEC filing, and has “ no current plan to sell additional shares” after his third time doing so.
McMahon makes large WWE stock sale
Per the organization’s SEC filing, McMahon sold 3,204,427 shares, approximately 4.1 percent of the company’s shares, “primarily to fund a separate entity from the Company, Alpha Entertainment LLC “Alpa”) [sic], which Mr. McMahon established to explore investment opportunities across the sports and entertainment landscapes, including launching a professional football league under the name “XFL.”
WWE shares closed at $84.87 per share Wednesday, netting McMahon $271,959,719.49. TV deals struck in 2018, the controversial but profitable 10-year “Crown Jewel” deal with Saudi Arabia, and the upcoming WrestleMania all pushed stock prices up for WWE since McMahon’s initial sale.
He still holds approximately 80.1 percent of the total voting power, per the SEC filing, and 36.8 percent of the total outstanding shares of common stock.
McMahon is worth $3.2 billion, according to Forbes, and made the 2018 Forbes 400 list of richest people for the first time in 16 years. He gained $1.6 billion in net worth last year, per Forbes.
McMahon adds to previous sales
McMahon has raised nearly $400 million from selling WWE stock over the previous 15 months. In December 2017 he raised approximately $100 million when he sold 4.3 percent of his stock at $32 a share. In December 2018 he sold off $22.9 million.
McMahon is reportedly looking to invest $500 million into the XFL, per The Wrap, to cover salaries and insurance costs. The XFL got off to a strong opening weekend in 2001, but lasted only one year and lost both the WWE and TV partner NBC millions. This time around the WWE will not be involved, hence McMahon’s selling of shares for capital through Alpha Entertainment.
If the AFL’s funding issues are any indication, getting a new football league off the ground is no cheap task. Tom Dundon, owner of the NHL’s Carolina Hurricanes, invested $250 million and this week said the league may fold.
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