Los Angeles entering an ownership turmoil would be the last thing MLB would expect amid its CBA negotiations. The reigning World Series champions and perhaps the most dominant and star-studded lineup currently in MLB may witness a change in ownership. With reports of Mark Walter offloading his ventures, like giving away the Lakers’ ownership amid an investigation led by the Securities and Exchange Commission (SEC) into his finances, the Dodgers may be the next.
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“It’s starting to seem like he might actually go to jail,” Bill Simmons said in a podcast with Sam Koppelman via The Ringer. “He’s already shed himself of the Lakers. He’s selling his Chelsea stake reportedly right now, which was like 12.5%. And my guess is the Dodgers are going to be next.”
Mark Walter, the chief executive officer of Guggenheim Partners, had his own universe of sports teams. Notably, he had stakes in teams like the Lakers, Chelsea FC, and the Dodgers. Recent reports suggest that he finalized a record-breaking $12.5 billion sale of his majority stake in the Lakers and is actively in talks to sell his minority stake in Chelsea FC to navigate an intensifying U.S. federal investigation into his business empire.
Walter reportedly sold his majority stake in the Lakers to a group led by venture capitalist Joshua Kushner and former Disney CEO Bob Iger. The sudden sell-off of these multi-billion-dollar sports franchises is fueled by a severe cash crunch linked to an FBI probe. It was reported that Federal investigators are looking into whether Walter improperly routed $21 billion in related-party loans from insurance companies he controls (such as Delaware Life) to finance his various private sports ventures.
The Dodgers are the leading team in MLB in terms of deferred contracts. They carry over $2.1 billion in total guaranteed and deferred contract obligations across multiple star players, stretching payments as far out as 2047. Thus, the chance of Walter moving away from the Dodgers could prove costly for the team. In recent years, the Dodgers’ financial muscle has dominated the league. And a sudden move-on could create a shockwave across the MLB community.