"Cash Crunch" Deepens? Mark Walter Explores Chelsea FC Stake Sale To Clearlake

The latest developments surrounding Mark Walter's empire appear to reinforce Yahoo Sports reporter Jack Baer's warning last week of a potential "cash crunch" following the abrupt $12.5 billion sale of the Los Angeles Lakers to Josh Kushner and former Disney chief Bob Iger. The Financial Times also reported last week that the FBI seized phones belonging to Walter and Guggenheim Investments President Dina DiLorenzo last year as part of a federal investigation into entities controlled by Walter.

Bloomberg reported Monday that Walter has explored selling his stake in Chelsea FC to Clearlake Capital, the London football club's majority owner. The report is based on information from people familiar with the matter and has yet to be officially confirmed.

Walter's family office approached the Santa Monica-based alternative asset manager, led by Behdad Eghbali and José Feliciano, in recent days, the report said.

For context, Clearlake is Chelsea FC's majority shareholder, holding more than 60% through the BlueCo consortium formed to acquire the club from Roman Abramovich in 2022. The remaining interest is held by Todd Boehly, Mark Walter, and Hansjörg Wyss, each with a minority stake.

The report noted that potential divestment comes as Walter's TWG Global pursues deals to address loans on its insurers' balance sheets that have sparked a federal investigation.

Last week, Walter agreed to sell the Los Angeles Lakers to Josh Kushner and Bob Iger for a record $12.5 billion.

Yahoo Sports reporter Jack Baer said last week, "Mark Walter is reportedly facing a cash crunch."

The Wall Street Journal noted the same:

Review last week's developments:

• FBI Seized Mark Walter's Devices Months Before Record $12.5 Billion Lakers Sale

TWG Global's sports portfolio extends well beyond Chelsea and the Lakers. The company notes on its website that it owns:

• Los Angeles Dodgers: Walter is the MLB franchise's controlling owner and chairman.
• Los Angeles Sparks: An ownership interest in the WNBA franchise.
• RC Strasbourg: Indirect ownership through BlueCo, the holding company that also controls Chelsea.
• Professional Women's Hockey League: TWG founded and financed the league, which recently added its first outside investors.
• Billie Jean King Cup: TWG owns 49% of the joint venture operating the women's international tennis competition.
• Cadillac Formula 1 Team: TWG Motorsports holds a majority interest alongside General Motors.
• Andretti Global: Teams competing in IndyCar, Indy NXT, and Formula E.
• Spire Motorsports: A NASCAR Cup and Truck Series organization.
• Wayne Taylor Racing: An IMSA sports-car racing team.
• Walkinshaw Andretti United: An Australian Supercars team.
• Teton Ridge: A Western sports, media, and entertainment platform.

The Los Angeles Lakers remain listed on TWG's website despite Walter's deal last week to dispose of the team.