Mark Walter’s sudden sale of the Lakers comes as he’s being looked into by federal investigators.
Just days before Walter agreed to give up his role as Los Angeles’ controlling owner to Josh Kushner and Bob Iger for $12.5 billion, it was reported that US prosecutors have been probing the businessman over the way billions of dollars had allegedly moved inside his companies.
The Securities and Exchange Commission alongside the US Attorney’s Office in Manhattan are investigating how around $16 billion in loans ended up in Walter’s conglomerate TWG Global balance sheets, according to the Wall Street Journal, with the feds exploring if any fraud had taken place.
A spokesperson for TWG Global, however, has denied wrongdoing, insisting Walter and his companies have “always acted in good faith.”
“Those who have done business with Mark know him as honest and straightforward,” the rep said. “Nothing about these transactions was any different. We are confident these matters will be resolved favorably.”
ESPN reported that the deal came together in a 72-hour span with Iger and Kushner first approaching Walter about a deal on Sunday.
While Walter gained notoriety in the business world after co-founding Guggenheim Partners — a global investment and advisory firm — he’s become a known name in the sports landscape following his establishment of TWG Global.
Through the org., Walter’s acquired affiliations with the Dodgers, Chelsea, the LA Sparks and the Cadillac Formula 1 team, among others.
He had just purchased the Lakers last year from the Buss family for around $10 billion before he agreed to offload the team to Kushner and Iger on Wednesday.
“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,” Walter said in a statement to ESPN following the news of the sale.
“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.”
