Years before Mark Walter took control of the Los Angeles Lakers, LeBron James quietly secured nearly $300 million in financing from two life insurers whose investments were managed by an arm of Walter’s Guggenheim Partners.
According to Bloomberg, insurance industry records show that a company controlled by James, King James Funding LLC, issued nearly $300 million in asset-backed bonds purchased by North American Company for Life and Health Insurance and Midland National Life Insurance Company. Both insurers are owned by Sammons Financial Group. The original bonds, issued in 2018 at a 4.8% interest rate, don’t mature until 2049.
Rather than borrowing against his NBA salary, James reportedly used future income from his extensive off-court business portfolio to back the debt. Sources told Bloomberg that revenue from assets such as his lifetime Nike sponsorship helped fund the arrangement, effectively allowing him to convert expected future earnings into immediate capital.
“The transactions were a securitization done by Mr. James with his personal, non-NBA salary, assets and income, which is a very common financial structure for an individual with this level of earnings and assets,” a spokesperson for James told Bloomberg.
The financing didn’t stop with the original deal. After paying down part of the debt, James’ company issued additional bonds to the same insurers. Around the time he signed a $97 million Lakers extension in 2022, the insurers purchased nearly $60 million more in bonds carrying a 5.75% interest rate and a 34-year term. By the end of 2025, approximately $245 million remained on the insurers’ books.
James’ representative said both transactions received independent third-party credit ratings and that the 2022 deal was “fully approved by NBA.” The spokesperson also stressed that James had no affiliation with Guggenheim, Sammons or either insurer beyond their participation in the financing.
The disclosure arrives at a particularly notable moment for the Lakers. Walter, who began building his stake in the franchise in 2021 before eventually acquiring majority ownership, has agreed to sell the team amid federal scrutiny of other parts of his business empire. Bloomberg reported there is no indication that James’ financing is connected to those inquiries.