LeBron James' limited liability company (LLC) engaged in business transactions with Mark Walter's company, which is currently under investigation by federal prosecutors and the Securities and Exchange Commission for alleged tax fraud, according to a report cited by FOX Business [1]. The relationship between James' LLC and Walter's business interests predates James' 2018 signing with the Los Angeles Lakers. Specifically, months before joining the Lakers, James' LLC borrowed $300 million from two Midwestern life insurers advised by an arm of Guggenheim Partners, where Walter served as CEO at the time [1].
The bonds issued in this transaction are due in 2049 and were backed by James' future non-NBA earnings, including sponsorship deals and his lifetime contract with Nike [1]. Walter, who began lending more as he increased his stake in the Lakers, first acquired a minority stake in the team in 2021 and later obtained a majority controlling stake in 2025 [1]. In 2022, James' LLC and Walter's Guggenheim Partners conducted another transaction, and in August 2022, following James' $97 million contract extension with the Lakers, the same insurers purchased nearly $60 million in 34-year bonds at a 5.75% interest rate from James' LLC [1].
A representative for James clarified that the 2018 and 2022 transactions were securitizations involving James' personal, non-NBA salary assets and income, describing this as a common financial structure for high-earning individuals. The representative also emphasized that both transactions received full NBA approval and that James has no affiliation with Guggenheim, Sammons Financial, North American Life, or Midland National beyond their roles in these transactions [1].
Mark Walter recently agreed to sell his share of the Lakers for $12.5 billion to Josh Kushner and Bob Iger, a move that coincides with the ongoing investigation and his efforts to reshape his business portfolio. FOX Business reached out to the Lakers and Guggenheim Partners for comment but did not receive an immediate response [1].
CONCLUSION
LeBron James' LLC's financial dealings with Mark Walter's company have come under scrutiny due to an ongoing federal investigation into Walter's business empire. While James' representatives assert that the transactions were standard and NBA-approved, the situation has prompted significant attention as Walter divests his Lakers stake amid the probe. The market impact is medium, given the high-profile individuals and large sums involved.