FBI Seized Mark Walter’s Devices Months Before Record $12.5 Billion Lakers Sale

Summary:

• Thursday: Yahoo Sports reporter Jack Baer said, “Mark Walter is reportedly facing a cash crunch.”
• Thursday: FT reports that the FBI seized devices belonging to Mark Walter last year as part of an investigation.
• Wednesday: Josh Kushner and Bob Iger stun the sports world with a record-shattering $12 billion Lakers takeover deal.

FT Reports Has Probed Mark Walter’s Empire 

One day after billionaire Mark Walter announced the record $12.5 billion sale of the Los Angeles Lakers to a group led by Josh Kushner and former Disney chief Bob Iger, the Financial Times reported that the FBI seized the phone of Guggenheim Investments President Dina DiLorenzo last year as part of a federal investigation into entities controlled by Walter.

DiLorenzo’s device was taken the same day federal agents seized Walter’s phone and laptop in September, according to people familiar with the federal probe. Important to note, Walter is the co-founder and CEO of Guggenheim Partners. 

They noted that prosecutors focused on whether Guggenheim Investments properly recorded revenue within Guggenheim Private Investments.

Guggenheim said auditors issued “unqualified opinions” on the 2024 and 2025 financial statements of the subsidiary that owns the private-investments business. Walter-controlled insurers previously disclosed subpoenas from the Manhattan U.S. Attorney’s Office and the Securities and Exchange Commission.

The report continued:

Insurance companies controlled by Walter disclosed in June that they had received subpoenas in connection with investigations by the US attorney’s office in Manhattan and the Securities and Exchange Commission. The US attorney’s office declined to comment. The FBI did not respond to a request for comment.

While the scrutiny of the insurers has been publicly disclosed, the seizure of DiLorenzo’s phone suggests authorities have also examined Walter’s other companies, including Guggenheim, the securities firm and asset management giant. It was not clear what stage of the investigations authorities were at.

. . .

Walter’s holdings, including insurers Delaware Life and Clear Spring Life and Annuity, now sit inside TWG. The insurers disclosed in June that they held more than $20bn of investments in affiliated entities, which they had previously marked as unaffiliated. They are now seeking to divest or restructure these holdings to bring down their percentage of related-party investments.

Yahoo Sports reporter Jack Baer noted earlier, “Mark Walter is reportedly facing a cash crunch.” 

Wall Street Journal noted the same:

The closeness of the federal investigation to the abrupt sale announcement puts new scrutiny on Walter’s decision to sell the Lakers in one of the largest transactions in sports history. 

Josh Kushner, Bob Iger Stun Sports World With Record-Shattering $12 Billion Lakers Takeover Deal

The Los Angeles Lakers are being sold to billionaire venture capitalist Josh Kushner, founder of Thrive Capital, and former Disney CEO Bob Iger for a record-breaking $12 billion, according to a new ESPN report.

The sports news website said:

The businessmen were involved in the expansion process in Las Vegas, but in a stunning turn, they pivoted to make an aggressive offer to buy the Lakers from Mark Walter, who had purchased a controlling interest in the team from the Buss family last year for a franchise valuation of approximately $10 billion.

The $12 billion buyout price implies an increase of at least 20% in the Lakers’ value in less than a year.

Josh Kushner, the younger brother of Jared Kushner, and Iger released the following statement:

“As lifelong NBA fans, we are deeply honored for the opportunity to become stewards of the Los Angeles Lakers, one of the most iconic sports franchises in the world. We have immense respect for the leadership and vision of Jerry and Jeanie Buss.

“Our long-term commitment is to build on that foundation, compete at the highest level, and serve this extraordinary team, its fans, and the city of Los Angeles.”

TWG Global CEO Mark Walter, who purchased control of the Lakers from the Buss family last year at a valuation of about $10 billion, has a sports holdings portfolio that includes stakes in the Los Angeles Dodgers, Los Angeles Sparks, Chelsea Football Club, the Professional Women’s Hockey League and several auto-racing teams, including Cadillac Formula 1.

“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.