Linda McMahon recounts near ruin from failed construction investment

Linda McMahon said a failed construction investment nearly wiped out her family’s finances while she and her husband, Vince McMahon, were building what would become the World Wrestling Entertainment company in the early 1980s. In a recent interview with Sage Steele, McMahon described how an accountant’s advice to diversify led the couple to put money into construction accounts and cosign loans for a business they did not understand, a venture that collapsed and forced them into bankruptcy.

McMahon said the setback did not stem from the wrestling operations, which she and her husband were simultaneously expanding after Vince McMahon purchased Capitol Wrestling from his father and they formed Titan Sports to manage the business. Instead, the losses came from outside investments backed with their personal guarantees. “We lost everything,” she said. “My house was auctioned off. My car was repossessed in the driveway. I was pregnant with Stephanie. I know what it’s like to lose everything.”

According to McMahon, the decision to invest in construction was prompted by a young accountant who advised them they were putting too many eggs in one basket and should diversify. The couple...