Last week, reports emerged stating that Vince McMahon was thinking about setting up a separate company away from the WWE called Alpha Entertainment, in which he is planning to bring back his former football league with, the XFL.
Yesterday, the WWE chairman took a step closer towards bringing back the XFL, as he sold 3,340,000 shares of WWE stock by to help fund his new Alpha Entertainment company. ESPN Sports Business Reporter Darren Rovell, also reported that Alpha Entertainment filed for five trademarks to "XFL" on December 16, with it showing up in the trademark office filing this week.
While this isn't news that will directly affect what happens inside the ring in the WWE, it does affect the future of the company since Mr. McMahon, one of the most respected figures in the WWE today, is selling his stocks, so it could have an effect on WWE's stock value.
Via PWInsider, WWE released the following statement regarding McMahon selling his shares in the WWE.
"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."
3.34 million shares of WWE stock would roughly be worth about $105 million dollars, so that's quite a big hit. However, as you can still see in the statement above, Vince McMahon still has 82.8% of the company’s total voting power, meaning he still has a big say in the running of the WWE.
So it looks like this $105 million is going to be used for bringing back the XFL at some point in the near future. The question is, is the world going to be ready for it once more? Or will it just last a single season like it did last time?
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