Conrad ThompsonHost
Vince McMahon and his insurers have agreed to pay forty-two and a half million dollars as part of a proposed settlement.

This is all a piece of the shareholder lawsuit that really challenged the twenty twenty-three merger between WWE and UFC.

I think sometimes people misclassify this and, and call it a sale, but it was a merger, and as a result, Vince McMahon has made a whole pile of money, a lot more than forty-two and a half million dollars, but it looks like that's the way he's gonna be taxed here.

It comes in addition to the hundred and five million that was previously agreed to by WWE.

So the total proposed settlement for this shareholder lawsuit that we recently saw the WWE settle several weeks back is a hundred and forty-seven million, five hundred thousand dollars, Eric.

Um, in the scheme of things, I mean, WWE has looked like they have more than doubled their value.

This is-- W- what is this? Is this a tax essentially? What would-- How would you classify this?
Not, not probably, you know, by an accounting definition per se, but essentially, you know, tax, uh, is probably another way to look at that.
Um, I'm sure they would've rather avoided it, but I think when you break out your calculator and look at the cost of doing business, and in this case the lawsuit that, uh, manifests as a result of the decisions that the- they made, um, yeah, it's, it's unfortunate, but it's cost of doing business.
It's probably a drop in a bucket compared to the overall revenue that's been generated.

But there's really no way for us to know this, so I'm not setting you up to fail with a question like this, but I know a lot of people are gonna raise an eyebrow and wonder, "Hey, when it says Vince McMahon and his insurers have agreed," I know that some companies would have like E&O insurance and, and obviously lots of companies at this scale would have umbrella policies and, and that sort of thing.

But I am curious, like based on what you understand of the case, how much of this winds up with an insurance company? How much of this winds up just coming out of Vince's pocket? There's no way for us to know the particulars of that, but I know it's gonna jump off the page at a lot of people like, "Hey, what exactly is Vince insuring?" Do you think this is a part of an umbrella policy, or how would you reconcile this, Eric?
Eric?I would guess, and it's a wild ass guess, but I would guess it's an, uh, error and omissions, E&O, policy coverage.
Um, g- given the scope of, of WWE's business around the world, I'm sure they have a substantial E&L, E&O policy.
And I don't wanna go into too much detail of describing what that insurance policy is, but it kind of speaks for itself.
Mistakes that you make in the normal course of business, omissions that occur that result in, you know, cost, expenses, lawsuits, whatever.
I would, I would assume, and probably be willing to bet a decent amount of money, this, this is covered by their E&O insurance policy.

Vince McMahon and his insurers have agreed to pay forty-two and a half million dollars as part of a proposed settlement.

This is all a piece of the shareholder lawsuit that really challenged the twenty twenty-three merger between WWE and UFC.

I think sometimes people misclassify this and, and call it a sale, but it was a merger, and as a result, Vince McMahon has made a whole pile of money, a lot more than forty-two and a half million dollars, but it looks like that's the way he's gonna be taxed here.

It comes in addition to the hundred and five million that was previously agreed to by WWE.

So the total proposed settlement for this shareholder lawsuit that we recently saw the WWE settle several weeks back is a hundred and forty-seven million, five hundred thousand dollars, Eric.

Um, in the scheme of things, I mean, WWE has looked like they have more than doubled their value.

This is-- W- what is this? Is this a tax essentially? What would-- How would you classify this?
Not, not probably, you know, by an accounting definition per se, but essentially, you know, tax, uh, is probably another way to look at that.
Um, I'm sure they would've rather avoided it, but I think when you break out your calculator and look at the cost of doing business, and in this case the lawsuit that, uh, manifests as a result of the decisions that the- they made, um, yeah, it's, it's unfortunate, but it's cost of doing business.
It's probably a drop in a bucket compared to the overall revenue that's been generated.

But there's really no way for us to know this, so I'm not setting you up to fail with a question like this, but I know a lot of people are gonna raise an eyebrow and wonder, "Hey, when it says Vince McMahon and his insurers have agreed," I know that some companies would have like E&O insurance and, and obviously lots of companies at this scale would have umbrella policies and, and that sort of thing.

But I am curious, like based on what you understand of the case, how much of this winds up with an insurance company? How much of this winds up just coming out of Vince's pocket? There's no way for us to know the particulars of that, but I know it's gonna jump off the page at a lot of people like, "Hey, what exactly is Vince insuring?" Do you think this is a part of an umbrella policy, or how would you reconcile this, Eric?
Eric?I would guess, and it's a wild ass guess, but I would guess it's an, uh, error and omissions, E&O, policy coverage.
Um, g- given the scope of, of WWE's business around the world, I'm sure they have a substantial E&L, E&O policy.
And I don't wanna go into too much detail of describing what that insurance policy is, but it kind of speaks for itself.
Mistakes that you make in the normal course of business, omissions that occur that result in, you know, cost, expenses, lawsuits, whatever.
I would, I would assume, and probably be willing to bet a decent amount of money, this, this is covered by their E&O insurance policy.
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