The SEC has released new, previously-unreported internal details following the release of WWE’s Q2 financial report.
As more and more details emerge in the wake of Vince McMahon’s resignation from WWE, questions have persisted about how the scandal went down, and the method with which it was brought to light. McMahon resigned amid allegations of sexual misconduct, which included hush money payments and former employees signing NDAs.
According to the SEC’s report, WWE did not maintain “an effective control environment to enable the identification and mitigation of risks of accounting errors.” It also contains specific references to “material weaknesses” in the company’s “commitment to integrity and ethical values” and “establishing structures, reporting lines, and appropriate authorities and responsibilities.” Additionally, WWE management at that stage lacked the “tone” to ensure “the expectations of the board of directors concerning the importance of integrity and ethical values was demonstrated by current and former executive management,” “accountability for the performance of internal control over financial reporting responsibilities,” or that “personnel with key positions had the appropriate training to carry out their responsibilities.”
The report would go on to state that alterations are required in operational procedures for “preventing or detecting omissions in contractual arrangements and agreements that require accounting evaluation,” which affect areas including control activities, monitoring abilities, and risk assessment for the WWE. Ultimately, “Our management is committed to remediating identified control deficiencies (including both those that rise to the level of a material weakness and those that do not), fostering continuous improvement in our internal controls and enhancing our overall internal controls environment.”
A full copy of the report can be read here.
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