McMahon is reportedly “ungodly furious” following the success of AEW’s (All Elite Wrestling) first show, Double or Nothing.
He was allegedly not happy with WWE wrestlers tweeting about the show, which is positioning itself in direct competition to McMahon.
WWE has been at the top of wrestling since it swallowed up Ted Turner’s WCW in 2001.
AEW is being bankrolled by Fulham boss Tony Khan and has hoovered up WWE legends such as Jim Ross, Chris Jericho and Goldust.
And now wrestling icon Terry Funk has said he believes Vince has been “knocked on his ass” by AEW.
“Vince thinks he’s fresh, he thinks he’s the best. That’s when you get knocked on your ass”
Funk believes to time is right for someone to take on WWE – and tipped AEW for that spot.
The WWE Hall of Famer – known for a career spanning more than 50 years – said Vince and WWE are “not fresh”.
“Yes, Vince does big business. They have the best talent in the world, but they have no fresh ideas,” Funk told Sports Illustrated.
“They should be selling out every arena. Vince thinks he’s fresh, he thinks he’s the best. That’s when you get knocked on your ass.”
Wrestling royalty and ex-WWE star Cody Rhodes – son of “The American Dream” Dusty Rhodes – along with his pals The Young Bucks and Kenny Omega are the masterminds behind AEW.
Funk – a friend of Dusty – praised what Cody was doing and compared him to The American Dream taking on Vince in the 80s.
He said: “Dusty had no fear against Vince because he was so very sharp.
“He knew his profession. Dusty would love everything about what his boys are doing. And they needed him to get here.”
Cody and his brother Dustin – better known in WWE as his character Goldust – had a bloody and acclaimed match at Double or Nothing.
The bout began with the AEW boss taking an open shot at the McMahons, using a sledgehammer to destroy a throne mocked up like to logo of WWE chief Triple H.
And in a massive coup, the main event of Double or Nothing ended up with the reveal of Jon Moxley.
Moxley – formerly known as Dean Ambrose – had been one of WWE’s top stars over the past five years, and left the firm in April.
AEW has already managed to secure a spot on TV in the US, and then in the UK in a big deal with ITV.
British wrestlers are being featured with deathmatch icon Jimmy Havoc along with “Superbad” Kip Sabian.
And AEW even featured TV comedian Jack Whitehall helping to unveil the firm’s world title belt alongside wrestling legend Bret Hart.
Funk said: “They’re going to do something special. They got the TV deal, plus they have Jim Ross.”
Ross is known for his work with WWE during its most popular periods in the 90s and 00s, and is still regarded as the best commentator in the business.
“Jim is following what he loves and doing a god-damned good job. He’s the greatest announcer ever,” Funk said.
Funk said for AEW to survive in needs “believability” and they have to be “smart” to compete with WWE.
AEW’s establishment comes amid a time of turmoil for WWE, with flagging TV ratings despite soaring profits and reports of tensions between bosses Vince and Triple H.
Wrestling fans have long been hopeful for a real rival to emerge to WWE to recreate the creative boom period of the late 90s.
Known as the “Monday Night Wars”, the feud saw WWE Raw and WCW Nitro go head-to-head every week.
Both firms competed for wrestlers and ratings – with the sport reaching peak popularity with stars like The Rock and Stone Cold Steve Austin.