As some of you may have heard by now, Vince McMahon recently made headlines by selling $100 million of his own stock (one million shares) in WWE to fund another venture of his called Alpha Entertainment.
We reported here some time ago regarding the rumours of the return of the XFL and while it doesn't look like it may be exactly that, it is now confirmed knowledge that Vince has filed several XFL trademarks.
Here is all the official jargon from the sale:
"On December 21, 2017, Vincent K. McMahon ("Mr. McMahon"), Chairman and Chief Executive Officer of World Wrestling Entertainment, Inc. (the "Company"), sold 3,340,000 shares of the Company's Class A common stock in a block trade made in accordance with the provisions of Rule 144 of the Securities Act of 1933, as amended. Mr. McMahon executed the sale primarily to fund a separate entity from the Company, Alpha Entertainment LLC, which Mr. McMahon established to explore investment opportunities across the sports and entertainment landscapes, including professional football. Mr. McMahon has informed the Company that he has no current plan to sell additional shares of the Company's stock and that he intends to continue in his capacity as the Company's Chairman and Chief Executive Officer for the foreseeable future.
The shares sold by Mr. McMahon represent approximately 4.3% of the Company's total outstanding shares of Class A and Class B common stock. After the sale, Mr. McMahon beneficially owns 32,193,375 shares of the Company's Class B common stock, which represents approximately 82.8% of the Company's total voting power and approximately 41.8% of the Company's total outstanding shares of common stock."
So of course, the ultimate question is:
What the hell does that mean?
Fear not. It does not mean that Vince is suddenly going to sell WWE to fund other ventures. In fact, while this sale may appear to be very significant, it only amounts to about 4.3% of the company's total stock value. To put this in perspective, Vince sold one million shares and still has over 32 million shares available to him. He has made no intentions on leaving his own company nor has he talked about taking time off.
By doing something at this level though, Vince is showing investors that he is willing to put money on the table for this new company and risk a great deal of it on whatever route he ends up going whether it be the XFL or something to that effect.
The coming months will be interesting and perhaps if Vince McMahon becomes more embroiled in his workings with Alpha Entertainment, we could see a greater share of responsibility held by Triple H and/or Stephanie McMahon.