Report links $350 million loan to Dodgers owner’s insurance affiliate and raises questions about related transactions
An investigation found that an insurance company owned by Guggenheim Partners loaned $350 million to a Mark Walter-controlled LLC in 2014, prompting scrutiny of the financing of the Los Angeles Dodgers and related deals.
A recent investigation disclosed that EquiTrust, an insurance firm owned by Guggenheim Partners, provided a $350 million loan in 2014 to American Media Productions, LLC, a company controlled by Los Angeles Dodgers owner Mark Walter. The loan coincided with the start of the Dodgers’ $8.35 billion local television contract with Time Warner, which generated more than $330 million in annual revenue for the franchise.
The report also noted that several individuals involved in the Dodgers’ purchase, including minority owner Magic Johnson, later obtained positions at Guggenheim or its affiliates. Johnson became the controlling shareholder of EquiTrust in early 2014 and, through his associate Eric Holoman, directed investments exceeding $100 million into a joint infrastructure fund, which filings listed as “unaffiliated.”
Walter, who serves as CEO of Guggenheim Partners, is under multiple federal investigations concerning undisclosed loans made by two Delaware insurers he owns, totaling more than $21 billion. The FBI seized his cellphone and computer last year as part of the probe.
Guggenheim Partners did not immediately respond to requests for comment. The Walter Group issued a statement denying that the Dodgers’ acquisition was improperly funded, asserting that the transaction complied with all applicable rules and regulations.
Despite the ongoing investigations, Dodgers president Stan Kasten reiterated that the baseball club is not for sale. The team currently leads the National League West and is pursuing a third consecutive World Series title.