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Contributions totaling $5 million to Donald Trump’s charity in 2007 and 2009 had been amongst $19.6 million in unrecorded corporate bills Vince McMahon paid out earlier than he stepped down from World Wrestling Entertainment Inc. amid misconduct allegations, an inner board investigation discovered.
In securities filings this month, WWE mentioned that the kind of $20 million that got here out of Mr. McMahon’s pocket will have to were disclosed, for the reason that transactions benefited the corporate he ran. While the majority of the bills went to girls who accused Mr. McMahon and any other WWE govt of sexual misconduct, the corporate mentioned within the filings that the $5 million was once unrelated to such allegations however didn’t state its objective.
People conversant in the board investigation mentioned the $5 million represented charitable donations to the now-dissolved Donald J. Trump Foundation in the similar two years that the then-real-estate developer made appearances at WWE televised occasions.
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WWE Chairman and CEO Vince McMahon speaks at a information convention saying the WWE Network on the 2014 International CES on the Encore Theater at Wynn Las Vegas on January 8, 2014 in Las Vegas, Nevada. (Ethan Miller/Getty Images / Getty Images)
Mr. McMahon retired as chairman and CEO closing month, finishing his four-decade tenure as the top of the corporate that he and his spouse, Linda McMahon, constructed into wrestling’s largest trade.
An lawyer for WWE mentioned the bills to Mr. Trump will have to were booked as trade bills as a result of Mr. McMahon was once a main shareholder and the bills benefited the corporate. He declined to mention why the bills benefited WWE.
The tax returns for the Trump Foundation in 2007 and 2009 display contributions of $4 million and $1 million, respectively, from WWE. In 2007, Mr. Trump seemed at the pay-per-view match WrestleMania 23, the place he shaved Mr. McMahon’s head in just a little promoted because the “Battle of the Billionaires.” He seemed in 2009 at the nationally televised “WWE Raw,” with a tale line that had Mr. Trump taking on WWE earlier than promoting it again to Mr. McMahon at double the associated fee.
In the “Battle of the Billionaires” in 2007, Mr. McMahon and Mr. Trump fought a proxy fit, each and every represented by way of a qualified wrestler, with the winner attending to shave the loser’s head. Mr. Trump’s wrestler gained.
An individual who reviewed Mr. Trump’s contract for the WrestleMania look mentioned that Mr. Trump directed Mr. McMahon to ship a $4 million look charge to Mr. Trump’s charity.
Mr. Trump had his pals evaluate the contract to make certain that not at all would Mr. McMahon be allowed to shave his head, even though Mr. Trump’s wrestler dropped lifeless within the ring, this particular person mentioned.
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After the development, Mr. Trump boasted that his look were one of these luck that Mr. McMahon agreed to offer him an extra $1 million, this particular person mentioned.
Donald Trump, Stone Cold Steve Austin and WWE Chairman Vince McMahon. (Jamie McCarthy/WireImage / Getty Images)
An lawyer for WWE didn’t dispute that the contributions had been associated with Mr. Trump’s appearances however challenged the perception that $1 million was once an advantage for the luck of the development.
“Mr. Trump and WWE entered into a contract whereby WWE agreed to and did pay him personally an appearance fee of $1 million,” Jerry McDevitt, the lawyer, mentioned in an electronic mail. “At the same time, the McMahons made a personal contribution to the Trump Foundation of $4 million. There was no additional fee paid to Mr. Trump, or any additional contribution to the Trump Foundation, due to the success of the event.”
Mr. Trump won a $100,000 charge for his look on “WWE Raw” in 2009, whilst “at the same time” Mr. McMahon and his spouse made a $1 million donation to Mr. Trump’s basis that 12 months, Mr. McDevitt mentioned.
Before the root’s dissolution, Mr. Trump were identified to direct his look charges there. Comedy Central gave the Trump Foundation $400,000 in 2011, the root’s tax go back presentations. That was once the similar 12 months Mr. Trump was once roasted at the cable channel by way of Seth MacFarlane, the writer of the tv display “Family Guy.”
A spokeswoman for Paramount Media Networks, which incorporates Comedy Central, didn’t reply to requests for remark.
Mr. Trump’s spokespeople didn’t reply to requests for remark.
The $5 million was once indexed at the basis tax returns as coming from WWE, however the corporate mentioned in securities filings this month that the bills got here from Mr. McMahon individually.
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The $4 million despatched by way of Mr. McMahon to the Trump charity in 2007 represented 98% of all contributions the root won that 12 months, whilst the $1 million in 2009 amounted to 91% of the root’s receipts that 12 months.
Mr. Trump agreed to dissolve the root in a agreement with the New York state lawyer normal’s place of job, which alleged in a 2018 lawsuit that Mr. Trump misused the charity finances to additional his 2016 presidential marketing campaign, pay criminal settlements and advertise his trade.
Mr. Trump admitted to misusing nonprofit finances and was once ordered by way of a New York pass judgement on to pay $2 million to charities as a part of the 2019 agreement.
“I am the only person I know, perhaps the only person in history, who can give major money to charity ($19M), charge no expense, and be attacked by the political hacks in New York State,” he mentioned in a 2019 commentary posted on Twitter. “No wonder why we are all leaving!”
WWE mentioned in a Monday securities submitting that the inner investigation into the bills by way of Mr. McMahon is “substantially complete.”
WWE Chairman and CEO Vince McMahon attends a press convention to announce a significant global match, WrestleMania XXIX, at MetLife Stadium on February 16, 2012 in East Rutherford, New Jersey. (John W. Ferguson/WireImage / Getty Images)
The $14.6 million in settlements Mr. McMahon entered into with girls, first printed by way of The Wall Street Journal, integrated a $7.5 million pact in 2018 with a former wrestler who alleged Mr. McMahon coerced her into giving him oral intercourse. She alleged that Mr. McMahon driven her out after she refused additional sexual encounters, in line with folks conversant in the deal.
An organization spokesman has mentioned a sexual dating between Mr. McMahon and a former WWE paralegal that led to a $3 million agreement this 12 months was once consensual. The spokesman has mentioned the corporate is cooperating with the inner investigation and takes the allegations severely.
Mr. McMahon stays the bulk proprietor of WWE’s Class B stocks, giving him the majority of shareholders’ vote casting energy, securities filings display.
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Mr. McMahon’s departure got here because the Securities and Exchange Commission and federal prosecutors within the U.S. lawyer’s place of job for the Southern District of New York introduced their very own inquiries into the bills, the Journal up to now reported.
Spokesmen for the U.S. lawyer’s place of job and the SEC declined to remark.
