Former WWE co-president explains decision to run Saudi Arabia after murder of Jamal Khashoggi – POST Wrestling
Former WWE co-president George Barrios has provided new details regarding the company’s decision to maintain its partnership with Saudi Arabia following the murder of journalist Jamal Khashoggi. These revelations appear in his book, “Sometimes Wrong but Never in Doubt: How a Cuban Kid from Queens Transformed WWE.”
The Conflict Over the Saudi Deal
In January 2018, WWE entered into a ten-year agreement with the General Sports Authority of Saudi Arabia, beginning with the Greatest Royal Rumble. However, negotiations were complicated by the disappearance of Washington Post contributing columnist Jamal Khashoggi on October 2, 2018.
Khashoggi entered the Saudi Arabian consulate in Turkey and never exited. The CIA concluded he was murdered under orders from Crown Prince Mohammed bin Salman, leading to sanctions on seventeen Saudis, with five receiving death sentences and three receiving prison terms.
Internal Debates and Financial Risks
The tragedy created a rift in WWE’s leadership. While Ari Emanuel, the current TKO CEO and executive chairman, returned a $400 million investment from the Saudi government, WWE moved forward with its Crown Jewel event on November 2, 2018, in Riyadh.
Barrios describes intense debates between himself, Michelle Wilson, and Vince McMahon. McMahon expressed deep discomfort, stating that proceeding with the deal could be the biggest risk the company had ever taken.
Barrios, however, argued that the deal was too worthwhile for the company to abandon. He urged McMahon to reconsider, suggesting that the full details of the situation were not yet known to anyone.
Corporate Shifts and Legal Fallout
The financial impact was significant, as the stock did not fully recover to its previous levels until early 2023, when the company explored a sale or merger. This period also saw leadership changes, with Barrios and Wilson being let go in January 2020.
Their roles were filled by Nick Khan that summer. However, in January 2023, Vince McMahon orchestrated a power play to return to the company, eliminating three board members and bringing Barrios and Wilson back to the board of directors.
What May Happen Next
The legal implications of these decisions may soon be addressed in court. Barrios is currently a defendant in an ongoing WWE shareholder lawsuit.
As the trial is scheduled to begin this Monday in the Delaware Court of Chancery, the proceedings could provide further clarity on the company’s fiduciary decisions during this period. The outcome of the trial may influence how shareholder accountability is viewed in similar corporate disputes.
Frequently Asked Questions
When did WWE first announce its deal with Saudi Arabia?
WWE announced the ten-year deal with the General Sports Authority of Saudi Arabia in January 2018.
What event did WWE hold in Riyadh despite the backlash?
WWE decided to run the Crown Jewel event on November 2, 2018.
Why did WWE’s stock price drop in October 2018?
The stock fell from $93 in September to less than $70 in October following the murder of Jamal Khashoggi.
How should sports organizations balance lucrative international partnerships with global human rights concerns?