Why Did LeBron James Need a $300 Million Loan From Mark Walter?

**Craig Carton** (0:04)
Oh, the beautiful people, just after 3 o'clock.
888-808-119.
Interesting business move by LeBron James, by the way. I don't know if you guys saw the story or not. So LeBron James, before he joined the Lakers, and signed a $154 million contract back in 2018, actually formed a limited liability company, an LLC, that he controls. And that company borrowed $300 million from a pair of Midwestern life insurers that were advised by an arm of Guggenheim Partners. Why is that an interesting story today? Well, because the company Guggenheim is that Mark Walter's company that's now in trouble of being indicted. And LeBron James owes that company $300 million, I assume plus some type of interest. Now, the $300 million loan was secured by LeBron James' future off the court earnings. For example, he has a lifetime contract from Nike. So Nike pays to make up a number. You have $20 million a year. So in theory, the hedge there is that when LeBron James has to start repaying the $300 million, if he doesn't write the check, well, Guggenheim Partners and these two insurance companies can wind up signing on to take the money that Nike would pay him on an annual basis until he's paid back with whatever the interest is. But the first question would be, and I don't claim to understand this because I don't, it's way out of my pay grade, if you're LeBron James and you're worth, conservatively, a billion dollars, and you're making 50, 60, 70 million dollars a year, why would you need or want a 300 million dollar loan that is due to be paid back in 2049, which is going to be bullpark 17, 18 years after your prime earning potential?
Like this is why rich people have different problems than the rest of us. Because the first thing that came to my mind is, why would LeBron James need a 300 million dollar loan? Like you're worth a billion dollars. You're LeBron James, you have multiple properties. You can get a HELOC, right? You can, whatever. Like what did he buy that he needed 300 million dollars for upfront? Because the amount of money he borrows, obviously, you know, he's got the goods to pay back with interest. So this still gets a little interesting because the company that oversaw the loan is the same company now that's owned by Mark Walters, who had to sell the Lakers in a panic and might be looking to sell the Dodgers now also in a panic because he's got to cover some bad investments he made or bad business decisions he made and cover that up with liquid cash. But it shows you again, the tangled web we weave. And no one's going to have the balls to ask LeBron about this. And obviously, LeBron is not doing interviews right now. The basketball preseason hasn't started yet. But can you figure out, like if you had to take a guess, why would a billionaire basketball player need to borrow $300 million and then pay it back with interest? Like what's out there that he would want to buy that he couldn't afford to just buy?
I don't get it. And if you're going to say, well, he wants a big yacht, well, it's like a car. Like you make a monthly payment on it, right? You want to buy a house, get a mortgage.

**Chris McMonigle** (3:57)
You would just take the loan out on that.

**Craig Carton** (3:59)
Exactly right. So I'm trying to figure out, and to me, there's dirty pool in there somewhere.
I just can't put my finger on exactly where it is, but it's weird that LeBron James would need a $300 million loan.

**Chris McMonigle** (4:16)
It might be a stupid question. He is a part of that Fenway Sports Group.

**Craig Carton** (4:20)
He owns a piece of the Red Sox, right?

**Chris McMonigle** (4:22)
That wouldn't be something to take.

**Craig Carton** (4:23)
Maybe he wants to buy more of it.

**Chris McMonigle** (4:27)
I don't know, because I don't know how that works either when you're a part of these gigantic ownership groups.

**Craig Carton** (4:32)
By the way, if he had a chance to buy a $300 million stake for a bigger stake in the Red Sox or a soccer team or whatever it might be, then obviously having the liquid money of that level gives you a chance to buy a bigger piece. Great point. By the way, maybe that's what it is. But it seems weird to me that a guy who's about to play his last season agreed to a two-year $8 million deal. So obviously he's got a side deal somewhere. Automatized his last year in the NBA because there's no way LeBron James plays for $4 million and doesn't have some kind of side deal. But it's weird to me that the billion dollars you're worth and all the properties you own and businesses you own, that you still needed somebody to lend you $300 million.