Troubling financial questions emerge after Mark Walters Lakers blockbuster sale

Mark Walter’s brief stewardship of the Lakers is ending beneath a cloud of federal scrutiny surrounding his sprawling financial empire.Walter agreed on Wednesday to sell the Lakers franchise to Thrive Capital founder Josh Kushner and former Disney CEO Bob Iger in a deal valuing at $12.5 billion.The transaction arrived only 14 months after Walter purchased control from the Buss family at a then-record $10 billion valuation.The sale has not been finalized and still requires approval from the NBA’s board of governors.Hours after the agreement surfaced, Bloomberg reported that Walter’s holding company, TWG Global, was seeking fresh capital to reduce loans held by its insurance companies—transactions already drawing attention from federal authorities.TWG has reportedly approached several investment firms, including Mets owner Steve Cohen’s Point72 Asset Management, about potential deals to raise cash.

The effort to address concerns surrounding the loans has accelerated in recent days, according to the report.Walter’s record-setting Lakers sale to Kushner and Iger is expected to advance that broader effort, although it remains unclear whether proceeds from the transaction will directly repay the loans.The $12.5 billion figure represents the franchise’s valuation, not necessarily Walter’s cash return.Federal prosecutors in the Southern District of New York and the Securities and Exchange Commission have been examining approximately $16 billion in private-credit transactions involving insurance companies controlled by Walter.The investigation reportedly began after an internal whistleblower questioned how Guggenheim Investments recorded revenue received through dealings with the insurers.

Authorities are examining whether loans supporting other portions of Walter’s business empire were properly identified as related-party transactions.Walter has not been charged with a crime, and investigations of this nature can conclude without enforcement action.The ...