The WWE, under the leadership of Vince McMahon, is grappling with a major crisis as a sex scandal unfolds, casting doubt on the future of the wrestling empire.

The scandal comes on the heels of a highly-anticipated Royal Rumble event and a recent $5 billion Netflix deal, raising questions about McMahon’s enduring grip on the company.

McMahon, the executive chairman of WWE-parent TKO Group Holdings, is at the center of a lawsuit filed by former employee Janel Grant.

Disturbing claims

The allegations against McMahon include disturbing claims that he defecated on her during a threesome, trafficked her to other WWE executives, and sexually abused her with toys named after wrestling stars.

The lawsuit alleges McMahon instructed Grant to create sexual content on her phone and send it to wrestling star Brock Lesnar, as part of an effort to lure him away from rival UFC.

Lesnar was expected to make a WWE return during the 37th annual Royal Rumble, but these plans may now be in jeopardy.

Despite the allegations, wrestling fans and media personalities believe McMahon is unlikely to be removed due to the terms of his employment contract. This poses a significant challenge for Netflix, which recently signed a 10-year deal with TKO to stream WWE shows and events.

Sexual misconduct allegations

McMahon had previously stepped away from the company while facing separate sexual misconduct allegations, but he returned to WWE with substantial power last year after no disciplinary action was taken following an internal investigation.

TKO has a bylaw stating that McMahon remains the executive chairman until he resigns, becomes incapacitated, or passes away. Media personality Andrew Baydala suggests that McMahon may eventually step down voluntarily, potentially saving Endeavor from paying a significant severance sum.

However, legal experts caution that it is too early to predict the outcome of the lawsuit and whether TKO could terminate McMahon for “just cause.”