WWE first learned of Lars Sullivan’s controversial posts about a year ago and they addressed it internally, notes the Wrestling Observer Newsletter. The company also expected that once they called him up to the main roster and pushed him, the uproar would happen again but the hope was that it would simply blow over and go away which is why WWE never asked Sullivan to make a public apology in the first place.
Even though Sullivan’s comments were posted before he was even in WWE, the fine itself was possible because of a clause in Sullivan’s contract that allows the company to either suspend or outright terminate a talent for a wide range of activities that harms his or her reputation or the company’s.
The Observer revealed this clause as follows:
“Wrestler shall act at all times with due regard to public morals and conventions during the term of this agreement. If wrestler shall have committed or shall commit any act or do anything that is or shall be an offense or violation involving moral turpitude under federal, state or local laws, or which brings wrestler into public disrepute, contempt, scandal or ridicule, or which insults or offends the community or any employee, agent or affiliate of promoter or which injures wrestlers’ reputation in promoter’s sole judgment, or diminishes the value of wrestler’s professional wrestling services to the public or promoter, then at the time of any such act, or any time after promoter learns of any such act, promoter shall have the right to fine wrestler in an amount to be determined by promoter; and promoter shall have the right to immediately suspend wrestler and/or terminate this agreement pursuant to Section 12.”