Originally published by LakersNation.com
Mark Walter’s decision to sell the Los Angeles Lakers to Bob Iger and Josh Kushner just one year after buying the team came as a shock to everyone.
Walter is the CEO of Guggenheim Partners and TWC Global while also owning the L.A. Dodgers, Sparks and other teams. But it was recently reported that his other companies are being investigated for potential financial improprieties, which according to Andrew Beaton, Margot Patrick and Kate Clark of the Wall Street Journal, is why Walter has needed to free up some cash:
With his business empire under scrutiny from federal investigators, Mark Walter was on the hunt for cash when, out of nowhere, he was about to be offered an enormous pile of money. The chief executive of Guggenheim Partners needed liquidity to keep his insurance companies afloat, people familiar with the matter said.
Walter and his companies had previously expressed that they would be able to get this investigation sorted out without needing to take drastic measures like selling the Lakers:
All of this is unfolding against the backdrop of a looming threat to Walter’s empire. The U.S. Attorney’s Office in Manhattan and the Securities and Exchange Commission are investigating how billions in loans extended to companies tied to Walter or his conglomerate, TWG Global, wound up on the books of his insurance companies after passing through a third entity. In a previous statement, a TWG spokesperson said the company was “confident these matters will be resolved favorably.”
Ultimately though, Walter was given an offer he couldn’t refuse by Iger and Kushner to sell the Lakers, which caused him to change his plans:
Selling the Lakers freed up other assets and collateral that Walter had pledged to finance the team purchase last year, a person familiar with the matter said—which might help the insurance remediation move more quickly. The surprise offer wasn’t part of the initial plan to become compliant with regulators, another person said, and the group continues to look for other fundraising options.
Walter is not planning to sell the Dodgers as of now, although that can obviously change at any time depending on how this investigation goes.
While it’s disappointing that Walter will no longer be the majority owner of the purple and gold after a one-year tenure, it appears that he has a lot of other stuff to sort out and felt this was the necessary decision for him to make. As a result, the Lakers will now have a third different ownership group in the last year-plus as they begin another new era with Luka Doncic as the face of their franchise.
Mark Walter’s statement on selling Lakers
Shortly after news dropped that Walter would be selling his majority stake in the Lakers to Iger and Kushner, he released a statement explaining the decision.
“Owning the Los Angeles Lakers has been one of the great honors of my life — an extraordinary investment, but what I will carry with me is the community, the fans, and a city that treats this team as family. I am grateful to Jeanie Buss, the Buss family, the players, and the staff for welcoming me into this chapter. The Lakers belong to Los Angeles, and I have every confidence the best is still ahead,” Walter said in a statement.
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Mark Walter’s decision to sell the Los Angeles Lakers to Bob Iger and Josh Kushner just one year after buying the team came as a shock to everyone.
Walter is the CEO of Guggenheim Partners and TWC Global while also owning the L.A. Dodgers, Sparks and other teams. But it was recently reported that his other companies are being investigated for potential financial improprieties, which according to Andrew Beaton, Margot Patrick and Kate Clark of the Wall Street Journal, is why Walter has needed to free up some cash:
With his business empire under scrutiny from federal investigators, Mark Walter was on the hunt for cash when, out of nowhere, he was about to be offered an enormous pile of money. The chief executive of Guggenheim Partners needed liquidity to keep his insurance companies afloat, people familiar with the matter said.
Walter and his companies had previously expressed that they would be able to get this investigation sorted out without needing to take drastic measures like selling the Lakers:
All of this is unfolding against the backdrop of a looming threat to Walter’s empire. The U.S. Attorney’s Office in Manhattan and the Securities and Exchange Commission are investigating how billions in loans extended to companies tied to Walter or his conglomerate, TWG Global, wound up on the books of his insurance companies after passing through a third entity. In a previous statement, a TWG spokesperson said the company was “confident these matters will be resolved favorably.”
Ultimately though, Walter was given an offer he couldn’t refuse by Iger and Kushner to sell the Lakers, which caused him to change his plans:
Selling the Lakers freed up other assets and collateral that Walter had pledged to finance the team purchase last year, a person familiar with the matter said—which might help the insurance remediation move more quickly. The surprise offer wasn’t part of the initial plan to become compliant with regulators, another person said, and the group continues to look for other fundraising options.
Walter is not planning to sell the Dodgers as of now, although that can obviously change at any time depending on how this investigation goes.
While it’s disappointing that Walter will no longer be the majority owner of the purple and gold after a one-year tenure, it appears that he has a lot of other stuff to sort out and felt this was the necessary decision for him to make. As a result, the Lakers will now have a third different ownership group in the last year-plus as they begin another new era with Luka Doncic as the face of their franchise.
Mark Walter’s statement on selling Lakers
Shortly after news dropped that Walter would be selling his majority stake in the Lakers to Iger and Kushner, he released a statement explaining the decision.
“Owning the Los Angeles Lakers has been one of the great honors of my life — an extraordinary investment, but what I will carry with me is the community, the fans, and a city that treats this team as family. I am grateful to Jeanie Buss, the Buss family, the players, and the staff for welcoming me into this chapter. The Lakers belong to Los Angeles, and I have every confidence the best is still ahead,” Walter said in a statement.
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