Last week we reported that a WWE Shareholder had filed a lawsuit against Vince McMahon in search of answers on the relationship between the XFL and WWE. Today Forbes has published an article giving us more information around this ongoing situation.
According to Forbes, the plaintiff is the Oklahoma Firefighters Pension and Retirement System, which owns 107 shares of WWE stock in its portfolio. The suit, which is the continuation of a process that the plaintiffs began a few months ago, is mainly about the following issues:
Did Alpha Entertainment, the XFL’s parent company, which is wholly owned by Vince McMahon, pay fair market value to WWE for the intellectual property of the original XFL, which included giving WWE a percentage of the company?
Is Alpha paying WWE fair market value for the support services that WWE is providing as part of that deal?
Was the XFL revival announced before the deal was completed?
In general, did McMahon and WWE, including WWE’s lawyers, act in a way that was not in WWE’s best interests?
Another red flag that the plaintiffs singled out was that McMahon’s employment agreement was amended in July 2018 to make explicit that his duties with Alpha Entertainment would not be considered a conflict of interest.
Ultimately, this is really just about sorting the relationship between WWE and Alpha Entertainment (XFL). As we stated in our original post, I wouldn’t expect this to go very far or affect the league in any way. We’ll keep you in the loop as we learn more on the situation.