The issues for Los Angeles Dodgers owner Mark Walter keep on piling up. Already under investigation by federal prosecutors and the Securities and Exchange Commission (SEC), a new report indicates that he sought to cash out media deals for the Dodgers and Los Angeles Lakers.
Walter is the Guggenheim Partners CEO and TWG Global founder. Now, companies he’s associated with, Delaware Life Insurance Company and its affiliate Clear Spring Life and Annuity, have received grand jury subpoenas. This has to do with improper disclosers and improper investments related to the company’s portfolio.
Seemingly, the Dodgers owner now needs to free up money. It was recently reported that he’s shifting billions of dollars. He sold the Lakers just around a year after purchasing them. Now, reports indicate he also wanted a lump-sum payment from Charter Communications.
John Ourand shared that Walter wanted the lump-sum payments to get out of local television deals for the Dodgers and Lakers. Nothing ever came of it, though.
In other words, Walter may be in a worse financial situation than previously thought. That, obviously, is a bad situation for the Dodgers as well, opening them up to a murky future.
What Does This Mean for the Los Angeles Dodgers?
GettyLos Angeles Dodgers owner Mark Walter
Charter Communications runs SportsNet LA, the local affiliate that carries both Dodgers and Lakers games. However, there have been reports at times that they want to sell. At one point, Mark Walter was even a potential buyer, though that is no longer the case.
Both the Dodgers and Lakers have what are considered massive media deals. For the Dodgers, it’s a 25-year deal signed in 2013 that is worth $8.35 billion.
Between the contract and the bankruptcy provisions that the Dodgers have, it gives the Dodgers tens of millions more in revenue than other MLB teams. It’s part of what has allowed them to build their current dynasty.
For now, nothing changes in the TV deal for the Dodgers. The deal is in place through 2038, paying out astounding sums compared to other MLB markets, and is owned by Charter, which owns SportsNet LA. Given the rise of streaming, it makes sense that Charter would want to get out of those deals in the future, though.
The much more concerning side of that for the Dodgers is what it means for Walter moving forward and stability within the team’s ownership.
The major concern is just how bad Walter’s financial situation is right now. He already had to sell the Lakers for $12.5 billion. So, the fact that he’s still looking for other revenue streams makes it seem like a dire financial spot. If it’s bad enough, there’s a chance he may even have to sell the Dodgers.
Mark Walter May Be Selling Off Key Pieces of Sports Empire
GettyLos Angeles Dodgers owner Mark Walter
Mark Walter already made a massive move by selling the Los Angeles Lakers. However, he has a massive sports empire. That includes Chelsea FC, the WNBA’s Los Angeles Sparks, the Professional Women’s Hockey League, Cadillac F1, and the Billie Jean King Cup. Not to mention the Dodgers.
Outside of the Dodgers, Chelsea FC is the most prestigious team Walter still owns. However, reports indicate he could be getting ready to sell there too.
Walter has a 12.83% stake in Chelsea. He’s a part of a consortium that spent $3.4 billion on Chelsea back in 2022. They purchased the team after previous owner Roman Abramovich was sanctioned due to his ties to Russian President Vladimir Putin for the invasion of Ukraine.
Whether or not Walter sells his share in Chelsea is, of course, still up in the air. If he does sell it, it will be interesting to follow if that’s enough to get him out of his financial tailspin, or if he’ll need to continue to make major moves.
Dodgers Owner Mark Walter Sought to Cash Out Media Deal Amid Investigation