Vince McMahon has agreed to sell 15% of his stake in World Wrestling Entertainment.
The deal was disclosed in a SEC filing Tuesday revealing that Vince McMahon has entered a deal with an undisclosed bank to provide liquidity for WWE.
The deal, called a pre-paid forward contract, allows Vince McMahon to sell shares of stock owned, but still maintain voting rights and keep dividends.
According to Bloomberg, the undisclosed bank is Morgan Stanley. The deal priced 2.26 million Class B shares at approximately $38 each, amounting to more than $80 million in liquidity freed-up.
A pre-paid forward contract differs from a straight stock sale. The deal allows Vince McMahon to sell a certain amount of stocks, but the buyer will not take ownership until a later date, usually between 2 and 5 years. According to the SEC filing, the deal will be settled in March 2024.
The deal is similar to a cash advance, and allows Vince McMahon to maintain voting rights.
The full SEC filing details are below.