Vince McMahon, the majority shareholder and CEO of World Wrestling Entertainment (WWE), has signed a new employment agreement that includes a clause about his potential multimillion-dollar payout and life story rights in the event of WWE’s sale. With many rumors about WWE potentially selling to a company that would not keep McMahon around, this new agreement outlines what would happen if this scenario were to happen.
McMahon’s New Employment Agreement
McMahon’s new contract with WWE runs for two years with the right to be extended in one-year increments after that. The new agreement will pay him up to $7.6 million this year, which includes a base salary of $1.2 million, a cash bonus target of 175% of his base salary, and stock awards of $4.3 million if the company meets performance targets. McMahon already owns controlling equity in WWE, and he has 28.7 million total shareholdings in the company. The agreement also includes enrollment in WWE’s 401k plan and use of the company jet for personal travel.
If WWE gets sold this year, according to the employment agreement, McMahon would receive at least $11 million in the event of a sale, with additional compensation likely depending on timing and share price. McMahon’s severance package is pocket change compared to what his equity would be worth in a sale.
Life Story Rights
McMahon negotiated within his employment agreement that he retains the future rights to his life story, distinguishing characteristics, and his name and variants- including the Mr. McMahon character he plays in WWE storylines- all “in perpetuity.” This means Vince can tell his story without fear of a lawsuit from WWE.
The agreement guarantees McMahon (and his successors) the right to own his intellectual property (IP), while he gives the company the right to use his IP on a nonexclusive basis. According to the contract, McMahon would have wide leeway to tell his story without fear of a lawsuit from WWE.
Possibility of McMahon’s Return to On-Camera or Creative Work
The contract leaves open the possibility of him performing on-camera or working on the creative side of the business again. It gives WWE the full right to those works, and it also gives the company rights in perpetuity to McMahon’s writing, appearances, performances, and creative director work product during his tenure as executive chairman.
McMahon Open to Selling WWE
According to sources, WWE may get sold this year, and McMahon is “100 percent open” to selling to a company that decides not to keep him around. McMahon’s return to WWE in recent years was reportedly because he wanted to put the company on the market.
Conclusion
In summary, Vince McMahon’s new employment agreement with WWE outlines his potential multimillion-dollar payout and life story rights in the event of WWE’s sale. The agreement also allows for McMahon’s possible return to on-camera or creative work and maintains his control over his intellectual property. With rumors of a potential sale circulating within the wrestling world, it remains unclear how this new agreement may come into play but for now it seems that Vince is taking care of himself should anything happen within WWE.
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