A limited liability company controlled by NBA star LeBron James secured nearly $300 million in loans from insurers advised by Guggenheim Partners before James joined the Los Angeles Lakers in 2018. The transactions, which began in 2017 while James was playing for the Cleveland Cavaliers, are backed by future revenue streams tied to his earnings outside of basketball, such as a 2015 partnership deal with Nike.
The initial loan in 2017, which came with a 4.8% interest rate, is not due for repayment until 2049. Four years later, King James Funding, James's LLC, received an additional $60 million in 34-year bonds at a higher interest rate of 5.75%. A follow-on securitization occurred in 2022, after James had joined the Lakers.
Guggenheim Partners, where Mark Walter serves as CEO, is currently under federal investigation for potential hidden, related-party transactions. This federal scrutiny has been suggested as a reason for Walter's sale of the Lakers, which he had owned for less than a year.
Walter became a minority owner of the Lakers in 2021, after the initial securitization but before the 2022 transaction.
A spokesperson for James stated that the 2018 and 2022 transactions were securitizations of his personal assets and income, a common financial structure for individuals with his earnings. The spokesperson also confirmed that both transactions received full approval from the NBA and that James has no affiliation with Guggenheim, Sammons Financial, North American Life, or Midland National beyond their participation in these deals.
Guggenheim is also listed as an investor in SpringHill Co., a media venture co-founded by James and his business partner Maverick Carter.