In a startling revelation, recent government filings have shown that WWE's parent company, TKO, acknowledged the founder and executive chairman, Vince McMahon, as a potential liability. This disclosure raises serious questions about why McMahon was allowed to return to the company last year, only to face accusations of sexual assault and trafficking.

Companies are required by the US Securities and Exchange Commission (SEC) to disclose to their shareholders the risks that could pose existential threats to their stakes in the company. These risks often include legal actions and shifting consumer demand. However, it is highly unusual for a company to list its own leader as a risk factor.

In TKO's most recent quarterly regulatory filing with the SEC in September, the company explicitly stated that McMahon's position on the board "could have adverse financial and operational impacts on our business." The filing further stated that McMahon's membership could expose the company to negative publicity and additional scrutiny.

These concerns were realized when a former WWE employee, Janel Grant, filed a disturbing and graphic lawsuit accusing McMahon of sexual assault and trafficking. Grant alleged that McMahon promised her job opportunities and promotions at WWE in exchange for sexual favors and also claimed that he trafficked her to other individuals both within and outside the company.

McMahon has denied these allegations and expressed his willingness to defend himself in court. However, he announced his resignation from his role as executive chairman of TKO on Friday "out of respect for the WWE Universe."

TKO has yet to provide a response to inquiries regarding why McMahon was permitted to return to the company despite the known risks associated with his involvement. WWE President Nick Khan sent an email to staff stating that McMahon had resigned from his executive chairmanship and board member positions, without delving into the specifics of the allegations.

This is not the first time McMahon has faced similar allegations. In 2022, an independent committee was established by WWE to investigate McMahon's alleged misconduct during his tenure as chairman and CEO. As a result of the investigation, McMahon repaid the company approximately $20 million for misappropriated funds and legal fees incurred during the investigation.

While further details regarding the investigation remain undisclosed, there have been reports that the funds McMahon misused were used for hush money to cover up affairs with multiple former employees. Additionally, it has been alleged that he donated millions of company dollars to Donald J. Trump's charity, the Donald J. Trump Foundation, in 2007 and 2009.

Despite retiring from his role amid the investigation in July 2022, McMahon made an unexpected return to the company in 2023. He played a significant role in facilitating the merger between WWE, UFC, and Endeavor, resulting in the formation of TKO in April. The merger was finalized in September.

Vince McMahon's influence and micromanagement style has long been synonymous with WWE. As CEO, he shaped the industry in his own image, dominating the competition and establishing his company as the premier destination for professional wrestling. McMahon's grip on the company seemed unbreakable, but his comeback was met with controversy and skepticism.

McMahon's future in WWE remains uncertain as he faces a hefty legal battle, including accusations of paying off former employees to conceal relationships during his leadership. He is also under federal investigation, though he has expressed his commitment to cooperating with the ongoing probe.

As the revelations come to light, it becomes evident that TKO was aware of the risks associated with McMahon's presence as the company's leader. The SEC filings and subsequent accusations highlight the necessity for further scrutiny and accountability within the organization.

Note: This news article was generated using the information provided by the user and does not reflect actual events.