Mark Walter has agreed to sell his controlling ownership of the Los Angeles Lakers for $12.5 billion to Josh Kushner and Bob Iger, a transaction that comes days after reports emerged of a federal investigation into the businessman. US prosecutors are reportedly examining how billions of dollars were moved within Walter's companies.
The Securities and Exchange Commission and the U.S. Attorney's Office in Manhattan are investigating approximately $16 billion in loans that appeared on the balance sheets of Walter's conglomerate, TWG Global. Investigators are exploring whether any fraudulent activity occurred.
A spokesperson for TWG Global has denied any wrongdoing, stating that Walter and his companies have consistently acted in good faith. "Those who have done business with Mark know him as honest and straightforward," the spokesperson said in a statement. "Nothing about these transactions was any different. We are confident these matters will be resolved favorably."
The deal for the Lakers reportedly came together over a rapid 72-hour period, with Iger and Kushner initiating discussions with Walter on a Sunday.
Walter, who co-founded the investment and advisory firm Guggenheim Partners, has also become a prominent figure in the sports world through TWG Global. His affiliations through the organization include the Los Angeles Dodgers, Chelsea Football Club, the LA Sparks, and the Cadillac Formula 1 team.
Walter had acquired the Lakers just last year from the Buss family for approximately $10 billion. Following the news of the sale, Walter expressed his gratitude for the experience of owning the team. "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," he stated. "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."