WWE has had a turbulent 2020 so far. After they fired Co-Presidents George Barrios and Michelle Wilson, the company's share price dropped from $62.30 to $42.53 in a week, and the price has only continued to tumble because of the Coronavirus pandemic. Now, WWE stock can be purchased for $36.26.
This has led Vince McMahon to take measures to secure WWE financially during the pandemic as he looks to increase the company's liquidity. McMahon filed a Form 8-K with the Securities and Exchange Commission as he entered into a variable prepaid forward contract covering approximately 3.5 million shares of Class B common stock. This will provide liquidity to the company and allow Vince to maintain his voting rights on the company's board.
The contract will be settled in March 2024, at which point McMahon will have to deliver Class A shares to the bank he took out the contract with.
According to Drew Singer at Bloomberg, WWE's CEO also sold approximately 2.26 million shares in the company yesterday through Morgan Stanley, priced between $37.75 and $38.25.