Among his many controversies, the 2024 Vince McMahon scandal has arguably become the most significant one. The scandal started in 2022 and peaked in 2024, when former WWE employee Janel Grant filed a federal lawsuit against McMahon, former WWE executive John Laurinaitis, and WWE. In her detailed lawsuit, Grant talked about serious cases of sexual misconduct, abuse, and trafficking.

The lawsuit, combined with earlier reports of McMahon’s hush money payments to cover up similar allegations, have affected his legacy and the WWE brand.

At Business 2 Community, we’ve analyzed news articles, lawsuits, official statements, and interviews by all parties involved, to compile the complete story of the McMahon scandal in one place.

Vince McMahon Scandal – Key Facts

  • WWE started investigating alleged misconduct by its CEO Vincent McMahon in 2022.
  • In 2024, former WWE employee Janel Grant filed a federal lawsuit against McMahon for abuse, sexual assault, and sex trafficking.
  • The case is still ongoing, but McMahon resigned from his role as the CEO and Chairman of the Board and started selling his shares in WWE’s parent company.

The Story of the Vince McMahon Scandal

The Vince McMahon scandal, involving WWE’s founder and former CEO, began in 2022 when WWE investigated McMahon’s hush money payments to cover up an alleged affair with former employee Janel Grant. This was followed by the discovery of similar settlements with four other women and a 2024 federal lawsuit by Grant.

Here, we chart the full story of the scandal, helping you understand how to navigate issues within your business leadership and have the right structures in place to prevent problems from arising as they did at WWE.

About Vince McMahon and WWE

Vince McMahon is the co-founder of WWE, World Wrestling Entertainment. His journey as a business owner started in 1982, when he bought the company from his father, Vince James McMahon. McMahon transformed WWE into a global company and turned wrestling into a mainstream sport. To popularize the sport, he created Wrestlemania in 1985, which is still one of WWE’s biggest events.

McMahon served as the company’s CEO for nearly four decades. In 2022, he voluntarily stepped down after WWE’s sexual misconduct investigations began against him. Since then, his daughter Stephanie McMahon served as interim co-CEO with Nick Khan between 2022 and 2023.

When she resigned, Nick Khan remained the only CEO. Vince McMahon briefly returned in 2023 to facilitate the UFC and WWE merger, which created TKO Group Holdings.

Ari Emanuel was appointed as the CEO of TKO, while WWE president Nick Khan continued to serve in his role.

The Start of the McMahon Scandal

In 2022, the Wall Street Journal reported on McMahon’s agreement to pay $3 million to a former employee who he allegedly had an affair with.

June 2022 Wall Street Journal article "WWE Board Probes Secret $3 Million Hush Pact by CEO Vince McMahon, Sources Say"

Two days after the article was published, WWE released a statement saying it was investigating the misconduct by McMahon and WWE’s Head of Talent Relations John Laurinaitis. McMahon stepped down as CEO and his daughter Stephanie McMahon was named interim CEO.

As for the reason why he resigned, Vince McMahon cited his old age.

In July 2022, the Wall Street Journal published another article, this time reporting that McMahon agreed to pay over $12 million to four women over the past 16 years to suppress allegations of sexual misconduct and infidelity.

July 2022 Wall Street Journal article "WWE’s Vince McMahon Agreed to Pay $12 Million in Hush Money to Four Women"

McMahon’s Return to WWE

Despite the investigations, Vince McMahon returned to the WWE Board in January 2023. After his return, UFC and WWE merged into one company, creating TKO Group Holdings as a part of a $21.4 billion deal. McMahon became the TKO executive chairman and Ari Emanuel the CEO.

Janel Grant’s Lawsuit

In January 2024, former WWE employee Janel Grant sued Vince McMahon, former WWE executive John Laurinaitis, and WWE for physical and emotional abuse, sexual assault, and sex trafficking. The 67-page lawsuit contained disturbing details on how Grant was treated when she worked at WWE between June 2019 and March 2022.

According to the lawsuit, when McMahon’s wife found out about their involvement in January 2022, the former CEO made Grant sign an NDA in exchange for payment. This was the hush money incident the WSJ reported in June 2022.

McMahon paid Grant $1 million but failed to make any further payments, including a payment of $500,000 which was due in 10 days from February 1, 2023.

Grant’s lawyer Ann Callis gave an interview to POST Wrestling’s John Pollock and Brandon Thurnston in April 2024, saying she thought the WWE employees were still concerned about speaking openly. “When Vince McMahon left the company, that was a positive first step. But the circus-like atmosphere that contributed to this corruption and victimization has to be addressed,” she said about the company’s work culture.

In May 2024, Janel Grant agreed to delay the lawsuit at the request of the US Justice Department, giving the government time to conduct a non-public investigation. McMahon’s attorney Jessica Rosenberg called Grant a “disgruntled former girlfriend”, and claimed her allegations were false.

Other Vince McMahon Scandals

The ongoing Janel Grant lawsuit and sexual misconduct accusations are not McMahon’s only scandals. Here are other accusations and scandals that involve the former WWE CEO:

  • Rita Chatterton scandal (1992): In 1992, Rita Chatterton, a former WWE referee, accused McMahon of raping her in 1986. McMahon denied the accusations, but agreed to settle the case to “avoid the cost of litigation”.
  • Anabolic steroids scandal (1994): As the president of the WWE, then named World Wrestling Federation, Vince McMahon was accused of providing wrestlers with illegal anabolic steroids. The government filed six charges against McMahon and he was found not guilty.
  • Tanning salon scandal (2006): McMahon was accused of sexual misconduct by an employee at a tanning salon in Boca Raton, Florida. The employee alleged that McMahon showed her nude photos and groped her. Although the police believed there was probable cause, McMahon was not charged.
  • Ashley Massaro’s unpublished statement (2024): Before her suicide death in 2019, former WWE wrestler Ashley Massaro accused Vince McMahon of sexually preying on female wrestlers. She also mentioned she was given bad scripts for rejecting McMahon.

The Consequences of the Vince McMahon Scandal

The scandal had several consequences for both McMahon and WWE’s business, as McMahon sold his shares and resigned.

McMahon Pays WWE $17.4 Million

In 2023, before Janel Grant’s lawsuit, McMahon paid WWE $17.4 million to cover the hush money payments he made while he was WWE’s CEO.

WWE Loses Sponsors Because of McMahon

The scandal meant lost opportunities for WWE, as it was (and still is) closely associated with McMahon. In January 2024, right after Grant’s lawsuit, Slim Jim, WWE’s sponsor at the Royal Rumble professional wrestling event, announced it would pause the partnership with the following statement:

“Slim Jim values integrity and respect in all of our partnerships. Given the recent disturbing allegations against Vince McMahon, 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.”

Following McMahon’s resignation, Slim Jim resumed the sponsorship agreement.

McMahon’s Hires Sitrick and Company for Public Relations

Numerous sexual misconducts, infidelity, and now, Janel Grant’s lawsuit heavily damaged McMahon’s public image.

In April 2024, POST Wrestling reported that McMahon hired Sitrick And Company as his public relations firm. Named as one of the most powerful PR companies, Sitrick and Company is particularly known for crisis management.

McMahon Resigns and Sells TKO Shares

Vince McMahon resigned from his role at the TKO board, WWE’s parent company. That said, he denied any wrongdoing in his relationship with Janel Grant.

“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,” he said in an official statement.

As for the reason why he resigned, he said it was out of respect for the WWE Universe, TKO Group Holdings, shareholders, partners, and employees.

After the WWE and UFC merger, McMahon started selling his shares of the combined company, TKO. Between 2023 and 2024, he earned around $1.5 billion from TKO stock sales. As of 2024, McMahon’s net worth is estimated to be around $1.8 billion.

What Can We Learn From the Vince McMahon Scandal?

McMahon’s actions affected WWE’s sponsorship deals and took a mental and financial toll on WWE employees and former employees, namely Janel Grant.

Here are the key business lessons we can take:

Ethics in Business Lay the Foundation

Glassdoor reviews suggest that McMahon treated employees badly even before the scandal was publicly known. In an interview, Janel Grant’s attorney Ann Callis confirmed how other WWE employees were scared of speaking openly at the company.

Below is a Glassdoor review from 2015, seven years before the WWE investigations started:

Anonymous Glassdoor review on WWE

Solving scandals with unethical practices does not go far. McMahon attempted to pay hush money to victims in 2022, but he faced a bigger scandal in 2024 when Janel Grant sued him. For leaders, treating employees well and knowing the limits of business relationships should come first. Otherwise, there might be irreparable scandals and long-lasting personal trauma like former employee Grant is experiencing.

Companies Should Take Abuse Seriously

In the 67-page lawsuit, Grant’s attorney highlighted how WWE’s top-level executives failed to investigate her abuse. Companies should focus on establishing ethical practices and solid HR processes to have a strong culture where everyone feels safe.

Big Scandals May Mean Big Decisions for Brands

The scandal almost cost WWE the Slim Jim sponsorship. A big reason for this is because McMahon was strongly associated with the brand. When a person becomes the face of a company, their potential misconduct inevitably affects the brand’s reputation.

Slim Jim resumed the partnership once McMahon resigned, confirming the brand’s need to distance itself from the controversy.

FAQs

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