Mark Walter Says Dodgers Stay With Him 'No Matter What' as Federal Probe Into His Insurers Continues

Mark Walter says the Los Angeles Dodgers are staying put.

"We're going to keep the team no matter what," Walter told Jack Harris of the California Post in an interview published today, Oct. 28. "We're going to be winning for 10 years or more. I think our commitment to do so will be just like it has been in the past. And you know, we don't win every year, but we're going to try to."

He added: "I certainly hope we can look forward to winning another World Series next year under my ownership."

What Walter would and would not discuss

Walter declined to address the federal investigation, saying it was "not appropriate for me to comment while the investigation is ongoing." He was adamant that the sale of the Lakers had "nothing to do with the Dodgers at all."

He also declined to comment on recent reports that he is looking to sell the WNBA's Los Angeles Sparks.

The interview also covered the team's spending. Walter said he will keep backing the Dodgers with the same financial resources that produced MLB payroll records in each of the last two seasons. The club's payroll is $322.39 million, second-highest in baseball.

The asset sales

The denials come after a run of sell-offs. Walter bought a controlling stake in the Lakers from the Buss family about a year ago at a $10 billion valuation. He sold it to a group led by Josh Kushner and former Disney CEO Bob Iger at $12.5 billion, a record price. The deal reportedly came together in a matter of days.

Weeks later, he sold his stake in Chelsea of the Premier League. He had held it alongside business partner Todd Boehly.

This month, Walter reportedly began exploring a sale of the Sparks and their new team facility. The reported asking price is at least $700 million, which would be a record for a WNBA franchise.

TWG has said Walter will not sell his stake in the Cadillac Formula 1 team or any other part of TWG Motorsports. It did not rule out selling other assets.

The investigation

Federal authorities are looking into insurance companies connected to TWG Global. The Justice Department and the Securities and Exchange Commission are examining the matter, according to reports. The allegations center on whether policyholder money was invested in other companies Walter owns without proper disclosure.

One account says the probe began with loans from two Delaware life insurers to businesses tied to Walter or TWG. Those loans were allegedly not reported as required "related party" transactions. Insurers must report such transactions to limit conflicts of interest and protect policyholders.

Walter has also been accused of using those companies and that money to fund his purchase of the Dodgers. That accusation is an allegation, not a finding.

TWG rejects the characterization. "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 company said earlier this year. "TWG stands firmly behind the integrity of its business and remains focused on continuing to deliver value to its stakeholders."

On the Dodgers specifically, the company said: "The team is not being sold and no sale process has been initiated."

Reports by financial journalists say the Dodgers themselves are not under investigation. They also say no link has been found between the club's finances and improper funding from Walter's other businesses. No charges against Walter have been reported.

The denials from the front office

Dodgers president Stan Kasten has denied a sale at least twice this season. "The Dodgers are not being sold, they're not going to be sold, they're not for sale. There is no process that has been started to sell, period," he said. Baseball operations president Andrew Friedman has also said it is business as usual.

The on-field picture is separate from the legal one. The Dodgers, two-time defending World Series champions, were swept by the Milwaukee Brewers in the NLCS earlier this month.

Money pressure

The reason the sales keep drawing attention is a reported cash crunch. Walter reportedly must repay roughly $20 billion by the end of the year, which is about two months away. That has reportedly driven a rapid liquidation of assets.

He also reportedly approached Charter Communications about ending the Spectrum SportsNet and SportsNet LA regional TV contracts early in exchange for a lump-sum payment. Neither Walter nor TWG has commented on that report.

Walter, 66, bought the Dodgers in 2012 for more than $2 billion. Everything he has said publicly points one direction on the team. The Lakers and Chelsea sales show he is willing to move quickly on assets he has said he would not part with.

Whether the Dodgers' payroll and ownership hold steady will be tested by that year-end repayment deadline and by any further developments in the federal investigation. Walter has not said how he plans to meet it.