DETROIT – A pretty unusual legal battle is unfolding in federal court over in Delaware. On one side, you’ve got the Detroit Police and Fire Pension Fund; on the other, Vince McMahon and World Wrestling Entertainment.
The City of Detroit often hosts WWE, which gets big ratings as the company is a big-money business.
Though it’s a public company now, McMahon, its majority owner and board chair, stepped down as CEO last year after allegedly using company money to pay millions of dollars to women who worked for him and also allegedly having affairs. The securities and exchange commission is investigating.
Now, McMahon is back as board chair, looking to sell the business his father started in 1963.
“WWE’s upcoming media rights cycle will take place amid a rapidly evolving media and entertainment landscape, and we believe exploring our strategic alternatives at this critical juncture will enable WWE to fully capitalize on the significant value of our intellectual property,” said WWE in a statement.
The Detroit Police and Fire Retirement System invested $100,000 in the WWE a few years ago and now is preparing for its own battle royale with the WWE and McMahon.
“The PFRS takes its role as a watchdog to protect its investments and those of its fellow shareholders seriously and believed this was an important matter that required prompt action,” said Detroit PFRS in a statement. “The lawsuit contends that neither Delaware law nor WWE’s charter permits the kind of transfer of power the system says occurred, and the system wants a declaration the consent is void.”
With all of this going on, the show must go on as WWE Smackdown will be at Little Caesars Arena Friday (Jan. 20).
