TKO Stock Price Falls Following Vince McMahon Revelations

TKO's share price dropped 4.4 percent on Monday, ending the day at $82.73 when markets closed. 

Trades for TKO shares were double the normal trading volume after one prominent firm on Wall Street flagged "brand and legal risk" to TKO, according to Deadline. This comes after Vince McMahon was accused of sex trafficking, sexual assault, and emotional and physical abuse in a lawsuit filed by former WWE employee Janel Grant. WWE, one of the companies within TKO along with UFC, was also named as a defendant, as was former WWE Head of Talent Relations John Laurinaitis. 

Monday's fall effectively wiped out the TKO stock price rise that occurred after it was announced that WWE Raw will air on Netflix from January 2025 in a $5 billion deal over 10 years. 

Robert Fishman, a Wall Street analyst at MoffettNathanson has given TKO shares a rating of "neutral" and he believes the lawsuit could pose "incremental brand and legal risks" to TKO. 

Fishman wrote about Vince McMahon: "His long-term intentions with his economic interests in TKO must be a consideration as a shareholder. Continued chunk sales by McMahon could put downward pressure on TKO stock."

McMahon still owns 12 percent of TKO following his resignation as Executive Chairman.