Raphael Stevens

World Wrestling Entertainment Chairman Vince McMahon is open to departing the company if he finds the right sale partner, WWE CEO Nick Khan told CNBC.
Khan predicted a sale process for WWE would last about three months.
Khan said McMahon has told the board he is “100% open to transactions” where he has no role in the company moving forward.

World Wrestling Entertainment Executive Chairman Vince McMahon is open to stepping away from the company “if it’s the right deal,” according to WWE CEO Nick Khan.
Shares of the company closed more than 5% higher Friday.

McMahon’s potential future involvement in WWE has become an early sticking point in preliminary talks with various buyers, according to people familiar with the matter, who asked not to be named because the discussions are private.
McMahon is WWE’s controlling shareholder. He developed the creative storylines for the professional wrestling league for decades, often taking part in narratives himself. Earlier this year, he stepped down as head of creative, handing the reigns to his son-in-law, former WWE superstar Paul “Triple H” Levesque. Khan took over as sole CEO in January when Levesque’s wife and McMahon’s daughter, Stephanie, stepped down as co-CEO.
“Vince has declared to the board he’s 100% open to transactions where he’s not included in the company moving forward,” Khan said in a CNBC interview Friday.

Vince McMahon attends a press conference at MetLife Stadium on February 16, 2012 in East Rutherford, New Jersey.
Michael N. Todaro | Getty Images

McMahon stepped away from his CEO role in June amid accusations of sexual misconduct from former female WWE employees. A month later, he announced he announced he would retire from the wrestling company he bought from his father over four decades ago. Last month, however, McMahon returned to the board to be directly involved in sale negotiations with potential buyers.
WWE has hired financial advisors to proceed with a sale process, which Khan predicted would last about three months. Khan emphasized WWE could be appealing to a large media company with a streaming platform that could increase subscribers by exclusively owning WWE’s monthly live events, along with its historical library of past matches.

“We feel the marketplace is robust for our product,” Khan said. “It’s in essence it’s own sports league. Someone can buy it and put it on their platform.”
Potential buyers for WWE include Comcast, Netflix, Liberty Media and Endeavor, which already owns UFC.
Khan acknowledged “it’s tough to take control” from McMahon, who has owned and run WWE (previously WWF) for more than 40 years. Still, he reiterated that McMahon would prioritize shareholder value and step away “if it’s the right deal — and we will take a look at all of the factors that make it the right deal.”
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.

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Ford Motor (F) CEO Jim Farley said the automakers’ messy fourth quarter was a function of its transition to a new business structure that limited production capacity, combined with poor execution. But we remain disappointed in the results and need to see an increase in profitability to stick with the stock after the next quarter. In an interview with CNBC that aired Friday, Farley said he’s in the midst of restructuring Ford to do business more efficiently but has faced challenges in simplifying processes at the auto giant, which in turn held back its profit last quarter. “It’s a lot to change. We have a lot of complexity relative to the customer and inside our company. It takes time to work through that,” Farley said. Ford late Thursday reported adjusted earnings-per-share (EPS) well below analysts’ forecasts, overshadowing a revenue beat. The company’s full-year EPS guidance also came in weaker than expected , sending the stock tumbling Friday. Shares closed down more than 7.5% in afternoon trading, at $13.23 apiece. The earnings miss comes days after Ford said it was cutting prices of its electric Mustang Mach-E crossover , while raising production, weeks after EV industry leader Tesla (TSLA) made a similar move. The price cuts mean that not all Mach-E models will be profitable on a per-unit basis. Last year, Ford announced a split of its electric vehicle (EV) and internal combustion engine vehicles into separate business units, called Ford Model e and Ford Blue, respectively. But profitability has yet to catch up with the restructuring. Farley told CNBC the automaker needs to work through higher-than-expected costs, a shortage of semiconductor chips and supply chain snags to achieve better profits at its EV division. “It takes a simplified effort to get to that 8% margin we’re looking for,” he said. However, he added, management still needs to rethink how to produce and distribute EVs in a more cost-effective way. The Club take “It’s inexcusable that Ford had a bad quarter,” Jim Cramer said Friday. “We will boot the stock if this quarter isn’t good,” he added. It’s positive that Farley has acknowledged the need for greater supply-chain efficiency, increased production, an improved cost structure and better execution — but we need to see the results. We’re sticking with Ford for now but it’s in the penalty box, meaning management has one more quarter to get it right. If we don’t see improvement by the next quarterly report, we will have no choice but to move on. (Jim Cramer’s Charitable Trust is long F. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Ford CEO Jim Farley at the company’s Dearborn, Michigan, plant where it’s building the electric F-150 Lightning on April 26, 2022.
CNBC | Michael Wayland

Ford Motor (F) CEO Jim Farley said the automakers’ messy fourth quarter was a function of its transition to a new business structure that limited production capacity, combined with poor execution. But we remain disappointed in the results and need to see an increase in profitability to stick with the stock after the next quarter. More

Smart Tax Planning

While the odds of an audit have been low, the IRS may flag your return for several reasons, tax experts say.
Some of the common audit red flags are excessive deductions or credits, unreported income, rounded numbers and more.
However, the best protection is thorough records, including receipts and documentation.

dmphoto | E+ | Getty Images

Tax season is underway, and there’s been increased scrutiny of the IRS as it starts deploying part of the nearly $80 billion in funding approved for the agency by Congress in August. 
While Treasury Secretary Janet Yellen has said goals include boosting customer service and improving technology, critics have warned the new funding will spark an uptick in IRS audits. 

“People are scared to death of the IRS,” said Karla Dennis, an enrolled agent and founder of Karla Dennis and Associates. “They don’t understand how the system works, and so they’re extremely fearful of audits.” 

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

The IRS audited 3.8 out of every 1,000 returns, or 0.38%, during the fiscal year 2022, down from 0.41% in 2021, according to a recent report from Syracuse University’s Transactional Records Access Clearinghouse.
While IRS audits have been rare, experts say certain moves are more likely to trigger an exam.

4 red flags for an IRS audit

The statute of limitations for an IRS audit is typically three years, with the clock starting once you file, explained John Apisa, a CPA and partner at PKF O’Connor Davies LLP. But there’s no time limit when the agency is pursuing tax fraud. 
Generally, the agency uses software to compare each return to others with similar income, assigning a numeric score to each one, with higher numbers more likely to trigger an audit.

Some of the red flags that may trigger an audit include:
1. Excessive credits or deductions compared to income 
For example, your return may get flagged if you made $100,000 and claimed $70,000 in charitable deductions.
2. Missing income
Your return must reflect what’s been reported by employers and financial institutions, Apisa said, such as Form 1099-NEC for contract work or Form 1099-B for investment earnings. Wait to file until you have all your documentation in hand, and check to make sure what you entered matches what’s on the forms.
“You have to be careful, even with the simpler stuff,” he said. 

3. Refundable credits
The IRS also reviews refundable tax credits more carefully since filers can still receive the tax credit with zero balance due.
While audits have declined overall, the drop is lower for filers claiming the earned income tax credit, a tax break for low to moderate earners, which has contributed to higher audit rates among Black Americans.
4. Round numbers
Deductions with rounded expenses may raise eyebrows, said Preeti Shah, a certified financial planner and CPA at Enlight Financial in Hamilton, New Jersey.
For example, if a business owner lists exactly $5,000 for advertising, $3,000 for legal expenses and $2,000 for support, “the IRS knows you’re just winging it,” she said.   
“Round numbers are a dead giveaway,” Apisa added.

How to protect yourself from a possible audit

While taxpayers may be fearful of an audit, experts say the best protection is staying organized by saving receipts and records to show proof, if needed. “You’re guilty until proven innocent,” Shah said.
And if you’re missing a receipt, copious records may provide a narrative to back up your position, Dennis said. “Document, document, document,” she added.  More

Southwest’s COO will face questions from senators next week over the airline’s holiday meltdown.
The carrier canceled more than 16,700 flights during the last 10 days of December.
The debacle has drawn scrutiny from lawmakers and the Biden administration.

John and Lori Ingoldsby, who drove to Denver after the first leg of their flight on Southwest Airlines was canceled, wait for a flight to finish their trip at Denver International Airport on December 28, 2022 in Denver, Colorado.
Michael Ciaglo | Getty Images

Southwest Airlines’ chief operating officer, Andrew Watterson, will face questions from a Senate panel next Thursday about the carrier’s holiday meltdown that stranded hundreds of thousands of travelers.
Southwest said the hearing date overlapped with “a previous commitment” for CEO Bob Jordan.

Jordan, who has been CEO for a year, has vowed to win back travelers’ trust after the debacle, which led to an $800 million pretax hit last quarter and pushed it into a loss.
Watterson plans to “use the opportunity to explain how we’ve taken actions to make things right for our Customers since Southwest’s late December disruption, as well as what we’re doing to mitigate the risk of it happening again,” the airline said in a statement.
The incident has drawn increased scrutiny from Washington and capped a year of on-and-off disruptions in air travel, due to bad weather, staffing and technology issues.
Southwest canceled more than 16,700 flights between Dec. 21 and Dec. 31 as crew scheduling software was unable to keep up with numerous flight changes in the wake severe winter weather.
The Senate Commerce Committee hearing will also include testimony from Casey Murray, president of the Southwest pilots’ labor union; Sharon Pinkerton, senior vice president of legislative and regulatory policy at Airlines for America, an industry group that represents the country’s largest airlines; Paul Hudson, president of consumer rights group Flyers’ Rights; and Clifford Winston, a senior fellow at the Brookings Institution.
Sen. Maria Cantwell, D-Wash., the committee chair, had previously said she planned to hold a hearing on flight disruptions after Southwest’s holiday travel chaos.

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The U.S. Treasury is changing its definition of an “SUV” to make more electric vehicles from Tesla, General Motors and others eligible for up to $7,500 in federal tax credits at higher prices.
The decision follows Tesla CEO Elon Musk publicly criticizing the former standards as well as GM and Ford lobbying to change the guidelines.
It’s unclear how the decision will affect up to 20% pricing cuts announced by Tesla last month that made the Model Y eligible for the credits.

A Tesla Model Y on display inside a Tesla store at the Westfield Culver City shopping mall in Culver City, California, U.S., on Thursday, April 14, 2022.
Bing Guan | Bloomberg | Getty Images

DETROIT – The U.S. Treasury said Friday it is changing its definition of an “SUV” to make more electric vehicles from Tesla, General Motors and other automakers eligible for up to $7,500 in federal tax credits at higher prices.
The decision follows Tesla CEO Elon Musk publicly criticizing the former standards on Twitter as well as automakers such as GM and Ford Motor lobbying to change the guidelines ahead of final rules being announced next month.

The change raises the retail price cap to $80,000 from $55,000 for vehicles such as the Tesla Model Y, Cadillac Lyriq, Ford Mustang Mach-E and Volkswagen’s ID.4. Previously some or all models of these vehicles did not qualify because they didn’t weigh enough to be considered an SUV by the Treasury’s standards.
The credits are part of the Biden administration’s $437 billion Inflation Reduction Act, which was approved in August. Under the bill, SUVs can be priced at up to $80,000 to qualify for EV tax credits, while cars, sedans and wagons have to be priced at or under $55,000.

Comparison of Ford, GM and Tesla shares.

It’s unclear how the decision will impact up to 20% pricing cuts announced by Tesla last month that made the Model Y eligible for the credits. Tesla did not immediately respond for comment.
Wall Street applauded Tesla’s price reductions but also was concerned that they would start an EV pricing war and pressure margins of other automakers, despite rising commodity costs for the vehicles. Tesla has enjoyed significantly higher profit margin on its EVs compared with traditional automakers.
Ford said Monday it would cut pricing of its Mustang Mach-E by up to $5,900 to better compete with Tesla’s Model Y. That’s despite the company’s overall EV business not currently being profitable, including some Mach-E models selling at a loss for the company.

Ford, in an emailed statement, said Friday officials “sincerely appreciate their consideration and hard work” by the Treasury.
GM also thanked the Treasury and hailed the changes: “The alignment on classification will provide the needed clarity to consumers and dealers, as well as regulators and manufacturers.”
The Alliance for Automotive Innovation, a lobbying group for most automakers operating in the U.S., also commended the decision.
– CNBC’s Chelsey Cox contributed to this article.

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United Parcel Service in April will start to negotiate a new national union contract, with the current one set to expire on July 31.
CEO Carol Tomé believes negotiations will conclude before the end of July.
“Whether there is a strike of UPS workers is up to UPS,” said a spokesperson for the Teamsters.

United Parcel Service (UPS) driver pushes a dolly of packages towards a delivery van on a street in New York.
Victor J. Blue | Bloomberg | Getty Images

With United Parcel Service’s labor negotiations approaching, CEO Carol Tomé sounded confident on this week’s fourth-quarter earnings call that a “win-win-win” agreement would be reached before the end of July.
But Tomé’s optimism comes as the Teamsters union, which represents more than 340,000 UPS workers, amps up pressure on the delivery giant.

“There have been a lot of articles and headlines that might cause someone to question whether or not a win-win-win is achievable,” Tomé said Tuesday on the call, acknowledging talk of tougher negotiations.
The Teamsters publicly pledged to launch a strike if a satisfactory contract is not reached. “Whether there is a strike of UPS workers is up to UPS,” said Kara Deniz, a spokesperson for the Teamsters.
The talks start in April, with the current national contract set to expire on July 31. Negotiations for local contracts begin this month.
A strike could do substantial damage to UPS operations, and create problems for businesses and consumers alike. In the fourth quarter of 2022, UPS workers delivered a global average of 28 million packages per day, according to the company’s website.
Even with the rumblings about a potential strike, Tomé is maintaining a positive outlook given that unionized workers “have been a part of the UPS family for more than 100 years.”

“This is not our first rodeo,” she said.
But this year’s talks will be different.
What to expect
Since UPS and the Teamsters last negotiated a contract in 2018, the world has been through a global pandemic that workers say has worsened UPS working conditions. The union itself has found new, more aggressive leadership, at that.
For the first time, Teamsters Union President Sean O’Brien and the union’s secretary of the treasury will have seats at the bargaining table and be directly involved in negotiating the terms of the new contract.
O’Brien took the helm of the union in March 2022 with an ambitious agenda and a radical attitude relative to his more moderate predecessor, James Hoffa.
“We are sending a message to UPS that the days of concessions and walking all over our members are over,” O’Brien said Aug. 1, when the union kicked off its national campaign in advance of negotiations.
The tough approach comes in the wake of the Covid pandemic e-commerce boom that fed a spike in UPS shipping volumes, generating high profits for the company and tougher working conditions for its employees, the union has said.
At the bargaining table, the Teamsters are looking to secure higher wages, more manageable work shifts and improved safety conditions. It wants to tone down employee surveillance practices like, for instance, getting rid of the ring cameras installed in most trucks.
Plus, after a slew of heatwaves, the Teamsters are calling for improved safety measures inside the company’s trademark brown trucks and warehouses. Over the summer, UPS drivers took to social media to post thermometer reads from inside their trucks, which often neared 120 degrees.
“There can be no dispute sadly that the earth is heating up and that puts an uncomfortable situation on our employees at the peaks of the summer,” Tomé said on the earnings call. She explained that even before negotiations begin, the company was planning to bring in new technology and hydration measures to keep workers safe in dangerous heat.

Teamsters also want to eliminate the “22.4” employee classification, which refers to workers who often work full-time hours but are officially considered hybrid and, as a result, are paid less. In general, the union is aiming to expand the number of full-time positions and put an end to subcontracting.
The union agenda also includes more manageable worker schedules after the Covid-era shipping spike forced many to have to work a sixth day on the weekend – what the union has coined “the sixth-day punch.”
“There are some drivers who leave while their kids are sleeping and when they come back at night, the child is back in bed. [Those drivers] lose the entire day working,” said Deniz, the Teamsters spokesperson.
The ‘bumpy year’ ahead
The pandemic shipping boom has since eased, and UPS is now navigating how to stay profitable while volumes sag.
CFO Brian Newman said he expects 2023 to be a “bumpy year,” as macroeconomic challenges like higher interest rates and inflation continue to drive up the company’s costs and weigh on demand. UPS estimates that 56% of its profit will come in during the second half of the year on the bet that loosening Covid restrictions in China will help revive the company’s international market.
Given these headwinds, UPS’ path forward looks centered around cutting costs and raising prices. The company said it would reel back capital expenditures to $5.3 billion, down from the initial $5.5 billion plan they started fiscal 2022 with, focusing on leasing rather than buying some of its locations. UPS also raised shipping rates by 6.9% in December 2022.
But as UPS tries to rein in costs, the question of higher wages and other labor investments still lingers.
“When you see something like [Tuesday’s earnings] where there were cloudy projections, well, what you also saw was $8.6 billion in dividends and buybacks,” said Deniz.
“Our members know what this company makes. They know the finances of this company and they know that they are what makes this company money,” Deniz added. “They want their share of the profitability.”
Despite the long list of union demands, Tomé assured analysts on the Tuesday earnings call that the company and the Teamsters are “aligned.”
“With just a few tweaks to our existing contract,” she said, “we can work this out.”

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