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Mark Walter’s TWG Global came out firing Wednesday, saying it has committed no fraud, rejecting the idea that Walter’s Lakers exit was part of a “fire sale” to raise money amid federal investigations, and insisting the Dodgers are not for sale. The press release marks the most substantial public statement since news broke that Walter’s companies are under parallel investigations by the U.S. Securities and Exchange Commission and federal prosecutors in the Southern District of New York. “Over the past several weeks, multipronged attacks against TWG have been advanced by unnamed sources with self-serving interests that have been reported in the media,” the statement says. “It is important to set the record straight. TWG stands firmly behind the integrity of its business and remains focused on continuing to deliver value to its stakeholders.”
Investigators are looking into at least two of Walter’s companies: Delaware Life and Clear Spring Life & Annuity. The probes center around inaccurate disclosures by the life insurers tied to what are known as “affiliated investments;” the amount originally disclosed was billions of dollars lower than what the company has since reported in restated disclosures. TWG’s statement says “there has been no fraud” and notes “there is no victim here. No one has been harmed, and no one has claimed they were harmed.” It also says TWG is “committed to working with” the DOJ and SEC to “resolve their inquiries,” and that it has “presented a plan to address any regulatory concerns.” A representative for the SEC declined to comment, and representatives for the DOJ and SDNY did not immediately respond to requests for comment.
The issues at hand mirror claims made in a 2014 lawsuit—that money one of the plaintiffs paid into her life insurance policy was used to fund a $35 million loan that was connected to the purchase of the Dodgers. Although that suit was dropped one day after it was filed, the forensic accountant who helped build the case recently told Front Office Sports “my clients seemed pleased, that’s all I can say.” In Wednesday’s statement, TWG says “the allegation that the Los Angeles Dodgers were acquired or have been funded improperly is false and not supported by the facts.” It also notes the 2012 deal was “subject to significant scrutiny and complied with all rules and regulations that govern the purchase of Major League Baseball teams.” Further, it says the Dodgers “have the highest revenue in baseball,” and that the team’s revenue “significantly exceeds” its payroll obligations.
However, TWG says it is “not looking to sell its sports assets at ‘fire sale’ prices to raise capital for its insurance operations. “TWG, Mr. Walter, and his partners continuously get interest from prospective buyers and co-investors in their sports assets, and, as responsible owners and investors, they consider legitimate offers when they are received,” the statement says.
Rakmone Shelburne: The company states: TWG is not looking to sell its sports assets at “fire sale” prices to raise capital for its insurance operations. •TWG, Mr. Walter and his partners continuously get interest from prospective buyers and co-investors in their sports assets and, as responsible owners and investors, they consider all legitimate offers when they are received. •Regarding the proposed sale of the Los Angeles Lakers for $12.5 billion, Mr. Walter was approached by Josh Kushner and his team about this transaction and the agreement represents a 25% premium to the price paid by Mr. Walter less than a year ago (and an even higher premium to the $5.0 billion valuation Mr. Walter paid in 2021)—hardly a “fire sale.” •Regarding the Los Angeles Dodgers, to be clear, the team is not being sold and no sale process has been initiated. •Dodgers’ president Stan Kasten, who is the public face of the franchise, has emphatically stated this position in on-the-record interviews in no uncertain terms.
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Federal prosecutors digging into Mark Walter’s business empire are focused on four entities that served as intermediaries between insurance companies he controlled that made loans to businesses that he also controlled, according to people familiar with the matter. Prosecutors and the Securities and Exchange Commission are investigating whether Walter, the chief executive of Guggenheim Partners who owns the Los Angeles Dodgers and various other businesses, or his companies committed fraud by concealing financial connections while borrowing billions of dollars from insurers he controls.
The main entities investigators have narrowed in on, the people said, are ABS Capital, a Miami outfit founded by two former Guggenheim executives; Amistad Financial, an investment company that owns EquiTrust, a life insurer once controlled by Guggenheim and Walter; Bradford Allen, a Chicago-based commercial real-estate broker with long ties to Guggenheim; and Hudson Trading, another Chicago firm.
From what we’re told, the sale is for Walter’s shares in the Lakers. It doesn’t affect Walter’s ownership of the Los Angeles Sparks and doesn’t involve his ownership of the back-to-back World Series champion Los Angeles Dodgers.
While the billionaire and chief executive of Guggenheim Partners is known for keeping a low profile, it was unusual even for him. Just 10 days earlier, Walter had spoken on the field after his team advanced to play the New York Yankees. At the time, only those close to Walter knew he was dealing with a medical emergency: Midway through the World Series, he had suffered a stroke, people familiar with the matter said. Since then, Walter’s health status has become a matter of concern inside his business empire, with varying opinions on whether lingering effects from the stroke have impacted his fitness to lead his businesses, the people said.
Some executives and investors said they perceived that his mental acuity had deteriorated compared with before the stroke. Others said he has since recovered from its worst effects, and they haven’t seen evidence that it affected his decision-making. Those people said his condition eventually improved and he has delegated responsibilities to his executive team.
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Until then, players may have to get used to working with the baseball group at Dodger Stadium. That, according to two league sources, is what the Lakers told Austin Reaves to do while he was rehabbing from an oblique injury during the playoffs.
At least theoretically, if you understand these general jumper traits, you can determine an “optimal” combination of shot angle and shot speed for a given player and shot type. “Pitch design is really popular in baseball,” said Buffi, who previously worked for the Los Angeles Dodgers. Reboot Motion also began in the baseball space, expanding to the NBA in the last few years. “We’re trying to pioneer shot design in basketball.” As Buffi and others in the field are quick to point out, though, the secret sauce isn’t identifying the ideal characteristics of a shot; it’s figuring out how to translate and apply that information to human beings. And even with great capture mechanisms available, jumper-hackers throughout the sector caution that we’re at the very beginning of what could be a long and winding road.
League sources say that includes significant hires to a wide range of front-office positions this summer, with the Lakers expected to model their front office after the World Series-winning Los Angeles Dodgers. “It’s going to be scary,” one rival executive said when asked about the potential of the built-out front office the Lakers are expected to assemble.
A major private equity firm bought the leading sports investment firm, the companies announced Thursday. KKR took control of Arctos Partners in a deal valued at $1.4 billion, giving the private equity giant a significant foothold in professional sports. Arctos holds an extensive portfolio of ownership stakes across every major North American sports league, from the NFL and NBA to MLB, and in the NHL and MLS. In the NBA, it holds minority stakes in the Golden State Warriors, Philadelphia 76ers, Utah Jazz and several others, including a stake in the Washington Wizards, which it acquired in December. It bought an 8 percent stake in the Los Angeles Chargers last year and also holds shares in the Los Angeles Dodgers and the Chicago Cubs. It also has a percentage of the soccer giant PSG.