Lakers sale proceeds as federal probe targets Mark Walter's insurance loans

Dodgers majority owner Mark Walter, who also controls the Lakers, completed a $12.5 billion sale of the basketball franchise to former Disney chief Bob Iger and venture capitalist Joshua Kushner amid a federal probe into his insurance holdings. Two Delaware-based life insurers owned by Walter—Delaware Life and Clear Spring Life and Annuity—have restated $21 billion in loans as related-party transactions, drawing parallel criminal and SEC investigations.

Prosecutors have seized Walter’s cellphone and laptop, while the SEC examines possible revenue-recognition issues at his asset-management firm Guggenheim Investments. TWG Global, Walter’s holding company, claims it is cooperating and expects a favorable resolution, though no formal charges have been announced. Rating agencies have lowered the insurers’ outlooks, and state regulators warn that the related-party loans could affect capital adequacy. The Lakers sale provides Walter with liquidity that may help address the insurers’ remediation plans, but the investigations’ outcome remains uncertain.