This week, I dug into understanding the scandal developing over the LA Dodgers (and the Lakers too....apparently).
So you have to go back to 2012 (it might even end up being five to ten years prior)....with this Mark Walter-guy buying up investment-type companies (mostly insurance companies).
They have to invest money and get a 'return'. For this reason....logically....they invest typically in sound practices.
Well...Walter bought two companies, and counted on the gov't being 'lax'. Delaware Life Insurance Company and its affiliate Clear Spring Life and Annuity....were the two.
So he rigged money 'borrowed' here from the two....into personal projects. Oddly....none of this was disclosed as “related-party” transactions, Yeah, it's a violation of law. How much was loaned? At least $16 billion....maybe on up to $20 billion.....with this part unclear presently.
The trend over the past decade? Buying up the Dodgers, and Lakers (NBA).....with media outlets that seem connected to the two.
Exposure? It would appear last year....some parts of the gimmick got exposed.
Lakers? Walter sold a majority share of the Lakers that he owned....making around $2.5 billion in profit off his short-term ownership. It would appear that he's trying to balance the books of the insurance companies, and the loans he's taken (to pay them off).
Fed mess? As a minimum....grand jury hype will occur.
Walter could probably pay off all the loans in the end (if he disposes of the Dodgers cleanly).
This whole discussion....part of the Major League Baseball spiral toward a strike at the end of this season? Well...the Dodgers are drawing a lot of criticism over how they seem to have tons of money (maybe insurance capital money).
I come to this odd end conclusion....wondering about ninety-odd NFL, NBA, and MLB clubs and how they were acquired in the past ten to twenty years. Could there be twenty to thirty clubs.....bought with more insurance or mutual fund capital....illegally?
Then I kinda wonder.....could some guys out there have $300,000 insurance policies....that they'd pass on (die), and the wife gets told....the insurance money can't flow very quickly....because it's tied up in the Dodgers, and the wife wondering....what the hell did 'Marvin' buy insurance-wise?
In a way....it's kinda funny.
Complicated? On my personal scale of 1-to-10.....complexity-wise....this is a '10'.
1 comment:
As I understand the flow-chart:
* Hoping for a better investment outcome than they could achieve individually or as a family, American Tax-Payers eagerly invest their spare investment funds in the government agents,
* Using investment wisdom mere mortals could never comprehend, the government agents form investment departments and investment bureaucracies to wisely invest those investment funds cheerfully entrusted to them,
* Those departments and bureaucracies invest their investment funds into foreign entanglements for the obvious reason those are better investments than anything locally,
* In sincere hopes of helping American Tax-Payers, those foreign entanglements freely give those same investment funds they just received back to American Tax-Payer representatives.
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And occasionally, not always but sometimes, almost too infrequently to even register a 'sigh' in the GrandSchemeOfThings™, a tiny portion of those investment funds are better invested in the Lakers?
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