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 on 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.
A representative for MLB declined to comment.
The idea that Walter could look to sell the Dodgers in order to raise funds amid what sources have called a “cash crunch” and “liquidity crunch” did not come out of thin air. Walter stunningly sold the Lakers to Josh Kushner and Bob Iger at a $12.5 billion valuation earlier this month, and is in talks to sell his stake in Premier League soccer team Chelsea.
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.
In addition to denying the Dodgers are up for grabs, TWG says Walter’s stake in the Cadillac Formula One team is not for sale. Walter also owns the WNBA’s Los Angeles Sparks and is the sole owner of the Professional Women’s Hockey League, which were not mentioned in the statement. Representatives for Walter and TWG did not immediately respond to questions about the Sparks and PWHL.
