WWE chairman Vince McMahon has reportedly netted around $23 million from the sale of a 1 percent stake from the company.
Per Sean Reuter of Cageside Seats, the WWE reported to the United States Securities and Exchange Commission that McMahon parted with 306,000 of company shares.
The 73-year-old still owns 32 million shares reported to be worth around $2.3 billion. And his decision over the recent sale is believed to be influenced by the planned launch of the XFL in 2020.
According to Reuter, McMahon sold around $100 million worth of stock earlier this year, ahead of his announcement regarding the formation of the XFL. The chairman owns the company by means of an entity called Alpha Entertainment, something which is supposed to ensure that the WWE has no involvement, as opposed to when the original XFL was launched in 2001.
The league only lasted a single season but McMahon is confident of success this time around as the only thing that will remain the same is the name.
The XFL is expected to have teams in Dallas, Houston, Los Angeles, New York City, St. Louis, Seattle. Tampa and Washington D.C. for its inaugural campaign. But an official announcement will be made on Wednesday.
What This Means
It appears that McMahon has major plans for the formation of his football league and will try his best to avoid the mistakes of 2001. He now has an additional $23 million in hand, according to the source, something which underpins his intention to invest heavily where the XFL is concerned.
The WWE owner has a reputation for being a shrewd businessman and the promotion's success is all the proof we need. However, operating a football league is a vastly different venture which will undoubtedly pose several challenges.