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Post by TOK Hehe'd Around & Found Out on Apr 13, 2020 15:28:52 GMT -5
Oh man, Vince is in BIG trouble here. This can’t be understated...this all may actually be the end of his time in charge of the company. What a freaking egomaniac. The XFL was an ill-advised vanity project that was doomed to fail from the start, but to tie your shareholders to it and then lie about it is a whole different level of shady. Depends on the specifics. It’s Class B stock. It could be as simple as WWE sold their rights over the XFL name in exchange for a certain amount of stock. The WWE top brass explicitly told shareholders that their company was not invested in the XFL at all. Even if it was the deal you described, they'd still be misleading shareholders.
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Post by The Summer of Muskrat XVII on Apr 13, 2020 15:30:00 GMT -5
I could be wrong, but didn’t they actually announce that WWE would receive a minority stake in the revived XFL in exchange for the rights to the XFL branding but that they wouldn’t be actual cash investors? And considering Ebersole offered $50 mil for the XFL trademarks, you could easily justify 25% in exchange for them.
Trust me, I’m far from a legal expert but I just can’t believe this is as cut and dry as “Nope, he lied and was funneling money to the XFL”
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Post by Deleted on Apr 13, 2020 15:30:45 GMT -5
Yeah, I fully expect WWE to be in hot water over this. They outright lied to their shareholders and you really, really can’t do that.
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Post by Deleted on Apr 13, 2020 15:30:50 GMT -5
Oh man, Vince is in BIG trouble here. This can’t be understated...this all may actually be the end of his time in charge of the company. What a freaking egomaniac. The XFL was an ill-advised vanity project that was doomed to fail from the start, but to tie your shareholders to it and then lie about it is a whole different level of shady. Depends on the specifics. It’s Class B stock. It could be as simple as WWE sold their rights over the XFL name in exchange for a certain amount of stock. Unless there's been some hypertechnical prophylactic measures that I'm not aware of that have been taken, Vince McMahon publicly stating that the XFL had no ties to the publicly traded company that he is the majority owner of, assuring his shareholders of that on multiple occasions, and then it ultimately coming out that his publicly traded company owned significant stake in the now-bankrupt company, which will undoubtedly cost his publicly traded company significant money, he's going to be ousted from WWE leadership at best and has committed a Federal crime at worst. There's no way to read this as "as simple as WWE sold its rights over the XFL name in exchange for a certain amount of stock," because if that was the case then McMahon outright lied multiple times about WWE/XFL ties by not disclosing that. I will just put it this way...I only have 50 shares of WWE stock and I personally have lost nearly a thousand dollars on it in the last year with the shadiness over the Saudi deal and sudden firing of two high-ranking corporate officials. I know some of it is attributable to COVID, but I can't imagine how huge of a loss people with significant holdings in WWE have taken, in large part due to outright mismanagement. This is not going to just blow over.
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cjh
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Post by cjh on Apr 13, 2020 15:33:31 GMT -5
I could be wrong, but didn’t they actually announce that WWE would receive a minority stake in the revived XFL in exchange for the rights to the XFL branding but that they wouldn’t be actual cash investors? And considering Ebersole offered $50 mil for the XFL trademarks, you could easily justify 25% in exchange for them.
Trust me, I’m far from a legal expert but I just can’t believe this is as cut and dry as “Nope, he lied and was funneling money to the XFL” In terms of the entire XFL, it was 11.75% that WWE had. Vince personally owned the other 88.25%.
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Post by Deleted on Apr 13, 2020 15:34:31 GMT -5
I could be wrong, but didn’t they actually announce that WWE would receive a minority stake in the revived XFL in exchange for the rights to the XFL branding but that they wouldn’t be actual cash investors? And considering Ebersole offered $50 mil for the XFL trademarks, you could easily justify 25% in exchange for them. Trust me, I’m far from a legal expert but I just can’t believe this is as cut and dry as “Nope, he lied and was funneling money to the XFL” Kind of...in 2018 when the XFL revival was announced, a lot of news outlets started speculating/reporting on that, and then some representatives from Alpha Sports came out and said that WWE was given a "minority equity interest with no financial obligation." But, now that the XFL has gone bankrupt and it's affecting WWE financially that contradicts everything that's ever been publicly stated about the WWE/XFL relationship.
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Post by The Summer of Muskrat XVII on Apr 13, 2020 15:35:41 GMT -5
Also, the now dismissed lawsuit specifically mentions that WWE received a percentage of the company in exchange for the XFL trademarks so that was 100% public knowledge.
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Post by Deleted on Apr 13, 2020 15:45:10 GMT -5
Also, the now dismissed lawsuit specifically mentions that WWE received a percentage of the company in exchange for the XFL trademarks so that was 100% public knowledge. If it genuinely is just the minority equity interest and the companies were truly operated independently of one another, there won't be an issue. But it seems like that's probably not the case. I guess it is irresponsible to jump to conclusions, but this just feels like it's going to be a tough one for Vince to skate through when he'd been taking heat form shareholders for the relationship with the XFL pretty much from its inception anyway.
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Post by The Summer of Muskrat XVII on Apr 13, 2020 15:48:00 GMT -5
Also, the now dismissed lawsuit specifically mentions that WWE received a percentage of the company in exchange for the XFL trademarks so that was 100% public knowledge. If it genuinely is just the minority equity interest and the companies were truly operated independently of one another, there won't be an issue. But it seems like that's probably not the case. I guess it is irresponsible to jump to conclusions, but this just feels like it's going to be a tough one for Vince to skate through when he'd been taking heat form shareholders for the relationship with the XFL pretty much from its inception anyway. Oh, if it comes out that he diverted one red cent from WWE to XFL he’s fifteen shades of f***ed It’s definitely an interesting story to follow
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Post by Deleted on Apr 13, 2020 15:50:39 GMT -5
Yea if anything is gonna oust Vince from his power seat in WWE right now it will be this...publicly lieing to your stockholders and possibly committed a federal crime.
I do not know how much more of tightrope he wants to walk but at this rate I am not expecting him to make it to next year as the owner of WWE.
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Post by Deleted on Apr 13, 2020 15:55:37 GMT -5
If it genuinely is just the minority equity interest and the companies were truly operated independently of one another, there won't be an issue. But it seems like that's probably not the case. I guess it is irresponsible to jump to conclusions, but this just feels like it's going to be a tough one for Vince to skate through when he'd been taking heat form shareholders for the relationship with the XFL pretty much from its inception anyway. Oh, if it comes out that he diverted one red cent from WWE to XFL he’s fifteen shades of f***ed It’s definitely an interesting story to follow Definitely. And I didn't really articulate what I meant well. I totally agree that it's been public knowledge that WWE had a minority equity stake in the XFL from its inception. But in every single quarterly report since then WWE has vehemently denied ties to the XFL, and what came out today is that WWE had 23.5% of the Class B stock, which, to me, is a lot more significant than the manner in which it was initially reported and makes the lipservice that the two companies were completely independent disingenuous. That, coupled with the shady circumstances under which Barrios and Wilson were let go in January, and the company consistently failing to meet projections lately (in large part due to a Saudi deal that nobody seems to be able to detail the specifics of) spells bad news for Vinny Mac on the corporate side of things. We'll see though...he's been Teflon on these kinds of things his entire life, so he probably has his bases covered. I shouldn't have been so conclusory in my first post.
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Post by The Summer of Muskrat XVII on Apr 13, 2020 16:00:08 GMT -5
Oh, if it comes out that he diverted one red cent from WWE to XFL he’s fifteen shades of f***ed It’s definitely an interesting story to follow Definitely. And I didn't really articulate what I meant well. I totally agree that it's been public knowledge that WWE had a minority equity stake in the XFL from its inception. But in every single quarterly report since then WWE has vehemently denied ties to the XFL, and what came out today is that WWE had 23.5% of the Class B stock, which, to me, is a lot more significant than the manner in which it was initially reported and makes the lipservice that the two companies were completely independent disingenuous. That, coupled with the shady circumstances under which Barrios and Wilson were let go in January, and the company consistently failing to meet projections lately (in large part due to a Saudi deal that nobody seems to be able to detail the specifics of) spells bad news for Vinny Mac on the corporate side of things. We'll see though...he's been Teflon on these kinds of things his entire life, so he probably has his bases covered. I shouldn't have been so conclusory in my first post. The Barrios and Wilson thing really should’ve brought more heat and questions. That’s still one of the most concerning business moves I’ve seen Vince make. The fact that nobody seems to have any real clue exactly what led to those two getting fired is really concerning to me
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Perd
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Post by Perd on Apr 13, 2020 16:10:19 GMT -5
Eh, nothing will come of it. Vince has like this presumed level of shadiness, thay let’s him skate on things like this. Yeah, it might be sort oh illegal. But it’s Vince McMahon, what did you expect?
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Post by KofiMania on Apr 13, 2020 16:12:05 GMT -5
Also, the now dismissed lawsuit specifically mentions that WWE received a percentage of the company in exchange for the XFL trademarks so that was 100% public knowledge. If it genuinely is just the minority equity interest and the companies were truly operated independently of one another, there won't be an issue. But it seems like that's probably not the case. I guess it is irresponsible to jump to conclusions, but this just feels like it's going to be a tough one for Vince to skate through when he'd been taking heat form shareholders for the relationship with the XFL pretty much from its inception anyway. Why does it seem like “that’s not the case” when the filing shows 23% interest in Class B stock? Wouldn’t that be a minority equity interest? Seems much ado about nothing.
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Post by KofiMania on Apr 13, 2020 16:15:39 GMT -5
Seems this was known already. WWE disclosed in a May 2018 SEC filing:
“On April 3, 2018, the Company entered into a transaction with Alpha Entertainment LLC (“Alpha”), an entity controlled by Vincent K. McMahon, granting Alpha rights to launch a professional football league under the name “XFL”. Alpha has announced that it expects that this launch will occur in early 2020. Under these agreements, WWE received, among other things, a minority equity interest in Alpha without payment by, or other financial obligation on the part of, WWE.”
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Post by Kevin Hamilton on Apr 13, 2020 16:16:41 GMT -5
I'm not going to pretend to know the legalities of what will happen from this, but optics wise it looks bad for em regardless.
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Post by Deleted on Apr 13, 2020 16:23:07 GMT -5
I'll just hang this here if shareholders ever get onto Vince so we can remember the good side of ol' Flex.
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Post by Deleted on Apr 13, 2020 16:31:36 GMT -5
I’m convinced Vince could murder someone in front of a large crowd and law enforcement and still find a way out of it. Let’s see how many lives he truly has left.
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Post by "Evil Brood" Jackson Vanik on Apr 13, 2020 16:36:56 GMT -5
Even if Vince didn't legally do anything wrong, he definitely lied and misled people.
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bob
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Post by bob on Apr 13, 2020 16:39:09 GMT -5
yikes
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