In a recent SEC filing, TKO Group Holdings, the parent company of WWE and UFC, disclosed its annual report to shareholders. The report indicates that WWE legend and TKO board member Dwayne “The Rock” Johnson received $900,000 in royalties and $2.6 million in travel reimbursements in 2024.
You can check out the complete SEC filing below:
“On January 22, 2024 (the “Effective Date”), the Company and WWE entered into an IP Assignment Agreement with certain affiliates of Dwayne Johnson, pursuant to which WWE assigned to Mr. Johnson (via one of his affiliates) “The Rock” trademark and certain related trademarks, service marks, ring names, taglines and other intellectual property assets (the “Assigned IP”). On the Effective Date, WWE also entered into an Independent Services Contractor and Merchandising Agreement with Mr. Johnson and certain of his affiliates (the “Johnson Services Agreement”), pursuant to which Mr. Johnson agreed to provide to WWE certain promotional and other services. Under the terms of the Johnson Services Agreement, Mr. Johnson further agreed to license the Assigned IP and Mr. Johnson’s name, likeness and certain other intellectual property rights to WWE for use in connection with certain categories of licensed products related to professional wrestling for up to 10 years, subject to certain earlier termination rights. As consideration for Mr. Johnson’s services pursuant to the Johnson Services Agreement, and in respect of the intellectual property grants and licenses made by Mr. Johnson and his affiliates in connection therewith, Mr. Johnson received an award of restricted stock units in respect of Class A common stock, in an amount equal to $30.0 million (the “Johnson Equity Award”). Subject to certain forfeiture and acceleration events, 25% of the Johnson Equity Award vested on the Effective Date; 25% vested upon completion of certain services described in the 2023 Services Agreement; 25% on December 31, 2024; and the remaining 25% vests in equal monthly installments from January 31, 2025 through December 31, 2025. Mr. Johnson is also entitled to receive annual royalties from WWE, and will be entitled to receive royalties in connection with the sale of licensed products that utilize the Assigned IP and his name, likeness and other intellectual property rights in accordance with the Johnson Services Agreement. For the year ended December 31, 2024, the Company paid $0.9 million of royalties that were earned by Mr. Johnson. In addition, Mr. Johnson is entitled to reimbursement for certain travel expenses associated with delivering services under the Johnson Services Agreement, of which $2.6 million was incurred by the Company during the year ended December 31, 2024.”
