The Wall Street Journal is reporting that the board of World Wrestling Entertainment is looking into a $3 million settlement that CEO Vince McMahon paid a woman over an alleged affair.
The woman, who worked as a paralegal for the company, will not be allowed to discuss her relationship with McMahon or make critical statements about the CEO under the agreement.
The relationship between McMahon and the woman was consensual, according to a spokesman for the company.
Linda McMahon, McMahon's wife, served as Small Business Administration chief in the administration of former President Donald Trump, who is a World Wrestling Entertainment Hall of Fame member.
According to the report, the board's investigation revealed nondisclosure agreements with other women who had worked at World Wrestling Entertainment. The agreements involved McMahon and John Laurinaitis, who wrestled under the name Johnny Ace.
CNBC requested a comment from the company.
A source told the Journal that the board hired a New York-based law firm to investigate. CNBC requested a response from the firm.
The lawyer for McMahon was not available for comment.
The former employee didn't make any harassment claims against McMahon The paper said that he said that the company didn't pay her anything.
At a time when the company is in a crucial position, the news comes. The daughter of Vince and Linda McMahon took a leave of absence from most of her responsibilities in May. She said she would return to the company she loved after taking time to focus on her family.
There have been rumors about a potential sale of the company. It has deals with a number of companies. The deal is about to end.
McMahon is the majority shareholder of the company. The company was taken over by his father in the early 1980s. The World Wrestling Federation became a global powerhouse under McMahon's watch. In the decades since, the company has created superstars such as Hogan, Hart, and Johnson.
You can read the Wall Street Journal report here.
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The report was contributed to by CNBC.
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