In news that shocked everyone, and which at this point nobody seems to be able to explain, Shane McMahon announced his resignation from his family’s company effective at the end of this year. McMahon, 39, the Executive Vice President of Global Media, wrote on the company’s web site on 10/16: “It is with great sadness that I announce my resignation from WWE, effective January 1, 2010. I have never even considered a future outside the walls of WWE. However, sometimes life takes an unexpected turn and while it is the most difficult decision I have ever made, it is time for me to move on. First and foremost, I would like to thank my father for the incredible education working with him has provided and for giving me the opportunity to play a role in building WWE into the global phenomenon that it is today. I am extremely proud to have been the 4th generation in the business, and I am grateful for every day I was able to work along side not only my own, but the entire WWE family. Thank you to all of the WWE superstars both past and present for your passion, pride and dedication. You are truly the engine of the organization and it has been a pleasure to work with, learn from and get to know all of you. Thank you for the privilege of sharing the stage with you and for allowing me to become but a momentary member of your elite brotherhood. I have so much appreciation for the many sacrifices you endure, both physically and personally, to make this business the success it is. The respect I have for each of you is immeasurable. Finally, there are no words to express my gratitude to WWE fans the world over for supporting this company through good times and bad and for your unbridled passion that fuels the Superstars’ performances. I am profoundly grateful to have been able to entertain you both in front of the camera and from behind the camera. You are the greatest fans in the world. I will always love this business and will remain a fan forever.”
Vince’s only public reaction, on the corporate web site, was saying, “Even though I am personally saddened by Shane’s decision to leave the company, I am proud of the enormous contributions he has made. He will unquestionably bring passion, commitment and extensive business experience to any endeavor he pursues.” So the speculation begins as to what it means, what caused it, and what is his next move. Nobody was aware this was coming. And people who are friends and have spoken with Shane McMahon since the announcement haven’t gotten an inkling of what his next move will be. In the company on Friday, after the news was released, the feeling was described as being like a bomb had hit. It was described as similar to the last massive layoff where everyone left was depressed. Even though the actual WWE business is strong, there is a feeling that the popularity of pro wrestling is not growing and some saw this as shocking because it’s not a corporate executive from the outside, but a member of the McMahon family, jumping off and whether that means he has lost confidence in it as a long-term business and is going elsewhere. The MMA speculation went wild.
“The external reasons are far bigger than the interior ones,” noted a former top level employee. “I’m sure they can find someone who will run the department he’s leaving as adequately as Shane has done. Depending on the reason he left, it might show a weakening of the base of the company. Here is the guy who should take control of the company, leaving to do `anything’ else. The lack of momentum in the company in years shows that even a McMahon doesn’t see it as a place to make his mark. If Shane is going into MMA, how does WWE spin it?” One person who still does business with company higher-ups noted that Shane isn’t talking, that Vince is pissed off but isn’t talking, and that Donna Goldsmith (who has taken over Linda’s duties while she runs for office and is also expected to oversee Shane’s department until a replacement is chosen) professes to know nothing. Those who work closely with Shane or for Shane were said to be in a state of shock. There was also concern by the few wrestlers who were close to him and partied heavily with him about their own positions. From all accounts, there were no wrestlers who saw it coming, and the crew on the road this weekend was largely in a state of shock, asking questions, but with no answers.
One has to realize that from at least the point he was a teenager, that Shane McMahon figured that at some point, he would follow in the footsteps of his father and grandfather, and run the company. It had become clear for years that it was never going to happen, and that Stephanie McMahon was going to be the one actually running the company when Vince steps down or passes away, and Shane would likely be a public face of the company, but not the key decision maker. Shane is 39, the same age Vince was when WrestleMania I took place. Who knows how being about to turn 40 has affected him. Over the past decade, he’s pushed to run things and make a name for himself as a promoter on his own as opposed to being Vince McMahon’s son who is an executive based on being son of the owner as opposed to having his own business accomplishments. Over the years, he had pushed for WWF to buy ECW in the summer of 2000 when WWF was in strong negotiations to close the deal with TNN (now Spike) that would result in ECW being kicked off the station. The idea was that WWF would buy ECW and Shane would keep it alive as a separate business, but Vince chose instead to let ECW die. On more than one occasion he had pushed to buy UFC when the price was something WWF could afford, but in the end, the decision was turned down, and he saw UFC explode to something that is considered more valuable than WWE. He was supposed to head the WCW division, although that role was going to be more a public face because WCW was going to be run by Vince, but Vince changed his mind. In 2006, when ECW was resurrected, Shane had pushed for it to be done as a separate company (think WEC and UFC) with him in charge, doing the old ECW style as being the young McMahon with the edgy product designed as a web-only broadcast, but three weeks before the launch, Vince had a meeting, cut him out of it and said it would be a third brand within WWE, be on Sci-Fi, and conform to WWE standards. It was noted at the time that Shane felt embarrassed over the decision and how it was handled, and there was a blowout at the time over it. Shane was also the one who wanted to acquire Pride in 2006 when it was for sale, again figuring it would be a company he would run. The rest of the family chose to pass on the deal without even serious discussion, and one person close to the situation said both the ECW situation and WWE passing on Pride, were huge letdowns to him personally.
Several years back, Shane McMahon got significant cash of his own from stock in the company. It’s not enough to buy a sports franchise, certainly not enough to compete in pro wrestling (or MMA for that matter), but it is enough to be a player and part of a conglomerate. It could be sports, or it could be an unrelated business. Some of his experience probably could be transferred to a degree over to other businesses, but having said that, when it comes to the McMahon family doing anything but wrestling, the track record has been pretty dismal. As far as what he does, the only businesses similar in scope would be a wrestling or MMA company, and in both cases, you’d have to compete against huge companies that are the brand names in each business. The odds are great of massive losses and eventual failure.
Buying a sports franchise in an existing successful league would have a far better chance of success, but the ante is way out of his league unless he goes in with numerous richer partners. He could afford to buy Strikeforce, which has the television deals in place to at least have some stability. But if Strikeforce were to compete with UFC and try to be No. 1, it would open itself up to short-term huge money losses with no guarantee of success. That’s why the current ownership seems happy to position itself as a No. 2 brand, hoping enough fans of the sport will be made that will support a second company. But if he is looking to make his name in business, one would think his goal wouldn’t be to be the Dixie Carter to Dana White. And at this point, in the MMA world where secrets are rarely kept, Shane McMahon leaving WWE is a non-story. With Linda campaigning for Senator, and Stephanie only going to TVs on PPV weekends, there is some fear of how Vince will react to all this, particularly since he’s become more difficult to work for.
The way the resignation was handled and positioned makes the idea he’s leaving to help his mother’s campaign unlikely. If that was the case, he’d ask for a leave of absence and it would be explained. There would be no panic within the company. It always could be a work to set up a big picture angle to create the idea of real competition, exactly what the original plans were for the “Shane McMahon’s WCW” angle in 2001. It’s highly unlikely, because it would be a deception to stockholders, to the point I’d say it’s impossible it’s an angle–except–Shane McMahon, a corporate officer, told the press that Floyd Mayweather was going to get $20 million for WrestleMania, a complete lie, and because it’s wrestling, it ended up not being any kind of a corporate issue. Clearly to Wall Street, this was not any kind of a significant issue, as the stock price has risen even with the person who was the public heir to the throne leaving theoretically being a bad sign.
WWE stock usually goes up and down dependent upon the market as opposed to the ups-and-downs or changes in its own business. “He brings a certain level of cachet with the McMahon name to meetings that others simply don’t have regardless of their resume and track record” said another former employee who is still connected somewhat with him. “He’s a fantastic schmoozer and is business enough that he gets results, but does so in a way where he can get a rather favorable if not outright one-sided deal out of a potential business partner while making them feel like a buddy–a trait his father does not have at all. He’s also the most technologically savvy within the inner circle. He is in the know on all wireless and digital endeavors that are pegged as the next big things in entertainment. He also is hands down, the best boss of the four McMahons. He constantly gets praise for being a cool boss who kept the environment loose and casual. People are really heartbroken who work for him. No one in any other department or division under another McMahon or Kevin Dunn will ever come close to the loyalty, genuine respect and bond Shane has fostered with his staff.”
Still, while others praise his work in Global Media, when it comes to media relations, his department, within the media itself, WWE has always been considered a paranoid joke. With the exception of reporters who are huge fans, the attitude of most reporters is bemusement that such a minor company in the big picture thinks they are so important and are so difficult to deal with. Also the general view of him on the creative end is that he’s not very good. While people have sympathy for him because of how Vince shoots his ideas down in such an unpleasant manner, one noted the ideas he came up with were rarely very good. “In my 30 years of living in and around corporate America, I’ve seen similar circumstances play out on numerous occasions,” noted Jeff Siegel, who has interacted with many major corporations. “It goes something like this: Offspring of Founder or CEO lives in the shadow of his or her father for years and years. Then, offspring decides to strike out on his own or her own to show that they can stand on their own two feet and `make a name for themselves.’ It’s usually driven by a strong psychological need to establish one’s own business identity.” Siegel also noted that in the majority of cases, the son returns to the business. “Perhaps he’ll strike out on his own and be successful,” he noted. “If that’s the case, he’ll have proven that he can succeed outside of Dad’s empire, and can hold his head high when he returns to take his rightful spot as the co-heir apparent. If he fails, well, that speaks for itself.” “People actually like working for him,” noted another former employee. “He inspires most to do their job and go above and beyond. A trait that’s key and something Vince can still do on a good day, but those days are getting fewer and further in-between the bad ones. Stephanie simply doesn’t get this aspect of the job. Shane is superb at keeping morale high within his department (s) and always seems interested in what’s up with a lot of his staff. As far as the move being made, one person who held a high position in the company for several years, noted, “He was pushed out of creative a long time ago. Is it the “his dad doesn’t listen,” angle? That’s been going on as long as he’s been out of creative. He’s got a beautiful family, a very successful wife (who is running a small film company in New York called Kamala Films) and had a far different view on the business.”