MR. TITO: Assessing the Possibility of Vince McMahon Reacquiring the WWE
Is the Online Wrestling Community SO DESPERATE to create news stories and chaos within the WWE that they believe in utter nonsense coming out of Vince McMahon-bootlicker Jonathan Coachman’s mouth? Really? That’s the person that you want to believe to somehow indicate that TKO is going to sell the WWE back to Vince McMahon?
On a recent podcast, Coachmen suggested that Vince “wants to” purchase the WWE and has “people tipping him off” about the possibility.
Sigh…
Let’s look at some simple facts, as I could easily discredit Coachmen or the conspiracies that another person on the same podcast was firing off…
Vince McMahon holds about 4% of TKO’s stock, after selling the majority of his shares per his 2024 exist from the company as TKO Chairman. Vince was TKO Chairman, but resigned once details of his Janel Grant lawsuit came out during the week after Royal Rumble 2024.
There exists almost 200 million shares outstanding of TKO stock, according to the recent 10-Q report filed by TKO. 4% of that would be about 8 million shares, and 8 million times the $156.74 price equals about $1.2 billion. Now, whether that’s Class A or Class B shares, that’s not known and that could place upon different prices of the stock.
Endeavor reportedly owns at least 51% of the TKO stock and combined with other partners, as Silver Lake private equity firm now owns Endeavor, the combined interests of the holding company involving Endeavor appears to own about 60% of TKO. Thus, even if Vince McMahon can round up the older WWE shareholders that may still exist, the Silver Lake/Endeavor interests will outweigh him no matter what.
Forbes projects that Vince McMahon’s net worth is $3.1 billion. If my estimate of $1.2 billion in TKO stock is correct, that means he has $1.9 billion as possible liquid assets unless he has that tied up in real estate or other stocks/bonds. Kind of amazing that Vince McMahon is ONLY worth $3.1 billion after selling off WWE during 2023, but it goes to show you how tied up his money was within WWE stock rather than investing it in other financial assets that could have given him a higher rate of return.
Vince having $3.1 billion does give him some collateral to BORROW against, specifically with a company full of intellectual properties that might have some worth to allow for a bigger commercial loan to be obtained.
HOWEVER – Vince McMahon is now an investment risk based on his recent lawsuit and NDA settlements, along with him being forced to resign from TKO. Vince carries some baggage that could challenge his ability to market a newly acquired WWE with a large commercial loan. Maybe Vince could get a loan, but at a higher interest rate and with much more leaning on his own net worth as collateral.
How much is the WWE worth, though?
First and foremost, you cannot take the total net worth or market capitalization of TKO. UFC is a major property of TKO and accounts for at least half, if not more, of TKO’s net worth. There is definitely not a way for Vince to acquire TKO, for example… For one, he cannot perform a hostile takeover of TKO because of at least 51% owned by Endeavor, but the combined Silver Lake/Endeavor/other close investors hold at least 60%.
Thus, Vince would have to make an offer to TKO to purchase WWE directly from them.
Through 2023, WWE had total assets worth just over $1 billion, but that’s the balance sheet… Looking at market capitalization when you consider number of shares and value/potential value of the WWE stock, it’s much higher. During the sale process, there were discussions of WWE’s true net worth being $3-6 billion and combining WWE within the TKO holding company with UFC, the net worth grows to a reported $9 billion.
But TKO’s value seems to be growing and growing with UFC’s ongoing growth and WWE’s recent booming growth with recent TV deals and higher ticket prices.
Purchasing the WWE now comes with the TV contracts of Netflix with $500 million per year over the next 5-10 years, $280 million per year with USA Network, more millions with CW Network, a potential new deal for WWE PLEs and WWE Network once Peacock deal expires after 2025, and all kinds of international revenue streams. The deals could have been made with TKO as a company, too, would could make for some technical details in the transfer of ownership. If the TV deals are included in the sale of WWE, that certainly boosts the cost of WWE for any company earning over $780 million per year in television money.
Silver Lake/Endeavor is making too much money off the WWE to just sell them off… Thus, Vince McMahon might come up short with his current assets plus borrowing capacity. However, if Vince McMahon gets the backing of another interest, say someone from the Middle East, things could change.
That’s the part where I think Vince could have a chance… If he has Saudi money, for example, that is backing him and they offer something crazy like $15 billion for the WWE, then yes, it could happen.
But why, I ask, would Vince McMahon even go through the trouble of SELLING the WWE during 2023 when he could have just kept it in the first place?
Nobody will answer that exact question… Why sell to TKO during 2023 only to attempt to buy it back during 2025? Why not just continue to ride the wave of the growing WWE through 2023 instead?
Because I think Coachmen is just talking like a Vince McMahon mark, that’s why. Seems like there are many out there longing for the days of Vince McMahon micro-managing everything backstage with his iron fist, along with acting inappropriately with female employees of the WWE. The many Vince McMahon marks somehow have the gall to criticize Triple H’s version of WWE while completely ignoring the 2010s where Vince was shredding and rewriting scripts often for RAW. Did you enjoy that terrible babyface push of Roman Reigns during the 2010s, too?
Now, as I explored in my recent column, the recent acquirer of Endeavor is a private equity firm named Silver Lake and they are an investor in many companies. However, if you’ve been following bankruptcy proceedings of many companies like K-Mart/Sears, Joann Fabrics, Circuit City, Toys R Us, and other retail or restaurant staples of the United States, them being owned by a private equity firm has been the common thread. In fact, private equity firm ownership of a company is representative of the majority of bankruptcies in the United States.
Right now, WWE and UFC are doing well and ticket prices and other costs are able to be easily passed on to their fans. Plus, both have major television deals with cable and streaming outlets. However, those deals can expire and fans could eventually feel the pinch of higher prices that they begin reducing consumption of both WWE and UFC (probably not UFC). I also don’t see any strong youth movements with WWE’s developmental programs to replace top drawing stars of today who are in their late 30s or are within their 40s.
Honestly, there is a real chance in 5 years when the Netflix deal is lost (opting out early) and USA Network has lost more subscribers that something like $280 million per year is no longer worth it. MAYBE, JUST MAYBE, the WWE could be potentially up for sale by 2030 and sold at a much cheaper price then. BUT Vince McMahon will be 84-85 years old by then.
Vince McMahon also has a very powerful friend in the White House whose Department of Justice and Securities Exchange Commission could probe the TKO corporation at any time, too, which could help reduce the value as well. You never know…
The idea of Vince McMahon + Foreign Investors would be the best potential route, especially if said foreign investors are willing to overpay to acquire the WWE. Many are suggesting that with no more Saudi events on the calendar, there may be friction between the Saudi government and WWE. However, WWE Royal Rumble 2026 will be in Saudi Arabia next year… If Saudi investors would back Vince McMahon to purchase WWE, I could see them being swayed to put Vince McMahon back in charge of the company.
With the way WWE is earning revenue, it’s going to take someone with deep pockets to overpay. Thus, Coachman is right if and only if Vince McMahon is backed by heavy Middle Eastern investors. Otherwise, it’s just not possible because I don’t believe Vince, himself, could obtain the capital needed to acquire a WWE with a bunch of revenue streams happening.
Until the Coach provides more details, I’m calling BULL on his claims for the moment… But if Vince McMahon has other investors with him to help acquire the WWE, then Coach could be right. Coach, however, hasn’t specified that possibility.
I’d watch what happens with the WWE, possibly if/when they are on the downswing following their peak 2023-2025 years. Keep an eye out for any additional sales of WWE assets or equity that Silver Lake owned Endeavor performs, too… But I really worry based on the price gouging for WWE live events that this corporate strip down process has already begun, as Silver Lake/Endeavor/TKO really seem to be squeezing that turnip hard to get the last drops out. From the high ticket prices to making cities overpay for big WWE events, they could be signs of Silver Lake squeezing out the last amounts that they can from WWE fans before moving on.
It’s the Coach and he tends to suck up to Vince, so I’d take his word with a grain of salt. However, Vince doesn’t have morals and is willing to sell out to anyone to help protect his own price.
Still makes me ask this basic question: Why sell during 2023, only to buy back at a much higher price 2 years later. Why waste time and money?
Vince McMahon, himself, cannot purchase WWE with his current assets and likely borrowing capacity. Foreign countries rich in Oil money can, however…
Personally, I would enjoy the big pile of money earned with the WWE and ride off into the sunset. However, Vince McMahon is fueled by ego and is unable to retire based on his driven personality. Then again, I’ve tried to ride off into the sunset by retiring this column but my drive on wanting to communicate my opinion with a wide audience of wrestling fans online keeps me going.
I just can’t get over selling in 2023 just to re-buy the company during 2025 for much more money. Why waste that much time and money?