Sexual Harassment in the Sports arena

  • Posted on February 12, 2024
sports arena

By Anuradha Gandhi and Celina Gandhi

Sexual harassment in the workplace is on the rise, a global first survey revealed that globally 22.8% of individuals have reported violence (physical, sexual, psychological) and or harassment in the workplace with more than three in five respondents experiencing harassment and violence in the workplace multiple times in the last five years.[1]

The world of sports is no exception, Vince McMahon founder of TKO Group holdings ($21.4 billion) and WWE resigned from his post as executive chairman and TKO board of directors amid lawsuit accusing of sexual misconduct and trafficking.

The suit was filed by former WWE employee Janel Grant (referred to as the plaintiff) who worked in the talent and legal department. The plaintiff named McMahon and John Lauriantis (talent head and general manager of WWE) as the defendants in the lawsuit.

McMahon had previously stepped down from his post of executive chairman of TKO in 2022 amid allegations of sexual misconduct which match the allegations of the suit. McMahon’s daughter had stepped in as interim CEO as investigations progressed among increasing allegations of sexual misconduct and payment of $12million dollars to four women associated with WWE to keep quiet about affairs and sexual misconduct.

TKO’s special committee vowed to take the allegations very seriously and investigate the scenario, however the plaintiff asserts that she was never contacted nor was she asked for documents during the stated investigation.[2]

Allegations made by the plaintiff:

  1. McMahon forced her into a sexual relationship and stated that a sexual relationship with said Defendant was a requirement of the job she was offered by him in 2019
  2. A pornographic video of the plaintiff was allegedly passed around by McMahon to other men including WWE employees
  3. John Laurianitis (former head and general manager of WWE) and other individuals had been recruited by McMahon to have sexual relations with the plaintiff
  4. The Plaintiff expected and directed by McMahon to engage in sexual activity at WWE headquarters even during working hours
  5. Accused both the defendant and Mr. Laurianitis of sexually assaulting her at WWE headquarters in June 2021
  6. The plaintiff was pressured into resigning from WWE and signing an NDA by McMahon when McMahon’s wife found out about the relationship

The suit asserts that WWE financially benefitted from the commercial sex act offering the plaintiff as a sexual commodity for use, as a perk to sign on wrestling talent such as WWE superstar.

The plaintiff claims that she was forced into the sexual relationship having to choose between financial ruin having to deal with unemployment and her deceased parents’ bankruptcy or meet McMahon’s sexual demands who routinely lavished her with gifts over the years including a luxury car.[3]

The plaintiff has asked the court to invalidate the NDA worth $3mn dollars of which she had only received $1mn claiming that the defendants were in violation of the Trafficking Victims Prevention Act and accused the defendants of negligence, battery and intentional infliction of emotional distress. The plaintiff is additionally seeking unspecified monetary damages. The plaintiff also states that she had been coerced by McMahon into signing the NDA stating that it would prevent a divorce between McMahon and his wife which would further cause the plaintiff’s name to be made public.

The NDA between the plaintiff and McMahon addressed the following:[4]

  1. The NDA contained the reasons for the termination of the plaintiff.
  2. The plaintiff agreed not to initiate any lawsuit against McMahon based on any matters in the NDA up to its execution.
  3. McMahon is under no obligation to make payments should the plaintiff default on any of the terms of the NDA.
  4. The NDA contains an arbitration clause, stating that any dispute arising from the NDA’s “construction, interpretation, application, performance or breach” must be resolved via arbitration and is the sole and exclusive legal basis to resolve any disputes arising from the NDA.

It should be noted that despite the terms of the NDA, the plaintiff may seek redressal under the following laws:

Laws applicable (US):

  1. Speak Out Act 2022: This act prevents enforcement of NDAs in the case that it contains elements of sexual misconduct. However this law is currently unenforceable in Connecticut where the lawsuit has been filed.[5]
  2. Ending forced arbitration of sexual assault and sexual harassment act: This acts could prevents the enforcement the pre-dispute arbitration clause within the NDA if it contains elements of sexual misconduct.[6]
  3. Equal Employment Opportunity (EEO):
    Title VII of the Civil Rights Act, 1964 protects employees against sexual harassment in the workplace. This law prohibits retaliation by covered entities against the employee that files for sexual harassment.[7]
  4. Connecticut Discrimination Employment Practices Act:
    This Act states that any individuals engaging in sexual harassment may also be subject to civil and criminal penalties[8]
  5. Trafficking Victims Protection Act, 2013:
    This Act penalizes trafficking of persons for commercial sexual exploitation[9]
  6. CORA (Corrupt Organization Racketeering Act):
    Connecticut law makes human trafficking a crime under CORA.[10]

Laws applicable (India):

  1. The POSH Act, 2013: section 19 of the Posh act elucidates the responsibilities of the employer to provide a safe and equitable working environment, protecting and sensitizing employees against sexual harassment.[11]
  2. IPC (Indian Penal Code) section 354a: Any individual that assaults or uses criminal force to any women with the intent to or knowing that it will outrage the modesty of the woman shall be liable for imprisonment for not less than two years.[12]
  3. IPC (Indian Penal Code) section 376c: Any individual convicted for forcibly inducing or enticing a female to have sexual intercourse shall be liable for imprisonment for not less than five years (which may extend to ten years) and may also have to pay a fine[13]

While McMahon maintains that “I stand by my prior statement that Ms. Grant’s lawsuit is replete with lies, obscene made-up instances that never occurred, and is a vindictive distortion of the truth,” The TKO group also stated that Mr. McMahon does not oversee day-to-day operations of WWE.

Currently, there is a federal investigation ongoing into the allegations of sexual misconduct for which McMahon was subpoenaed last August. The case has been sent to district judge Jeffery Myers and is being considered for escalation to the pre-trial discovery stage.

Background:

WWE is the world’s largest wrestling organization and has recently signed a 10 year deal worth $5bn with Netflix agreeing to exclusive streaming of WWE raw on the platform from January 2025.

The organization merged with the company that runs the Ultimate Fighting Championship in April to form the $21.4 billion organization that forms TKO Group Holdings.[14]

[1] https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_863177/lang–en/index.htm
[2] https://www.cnbc.com/2024/01/25/wwe-boss-vince-mcmahon-sued-over-alleged-sexual-assault-trafficking.html
[3] https://www.cbsnews.com/news/wwe-vince-mcmahon-sex-trafficking-lawsuit-janel-grant/
[4] https://www.sportico.com/law/analysis/2024/mcmahon-sex-trafficking-lawsuit-nda-1234764363/
[5] https://www.congress.gov/117/plaws/publ224/PLAW-117publ224.pdf
[6] https://www.bswllp.com/us-congress-passes-law-that-will-void-nondisclosure-agreements-related-to-sex-harassment-claims
[7] eeopost.pdf
[8] chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://bahprdpplsrvcs.blob.core.windows.net/pplsrvcs/Connecticut/Connecticut_Sexual_Harassment_Act.pdf
[9] https://humantraffickinghotline.org/en/human-trafficking/federal-law
[10] chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.cga.ct.gov/2020/rpt/pdf/2020-R-0005.pdf
[11] https://www.indiacode.nic.in/show-data?actid=AC_CEN_13_14_00009_201314_1517807327213&sectionId=12952&sectionno=19&orderno=19
[12] https://www.indiacode.nic.in/show-data?actid=AC_CEN_5_23_00037_186045_1523266765688&orderno=395
[13] https://www.indiacode.nic.in/show-data?actid=AC_CEN_5_23_00037_186045_1523266765688&orderno=425
[14] https://time.com/6589318/vince-mcmahon-resigns-wwe-sexual-misconduct-lawsuit/