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Mark Walter’s TWG Global came out firing Wednesday, saying it has committed no fraud, rejecting the idea that Walter’s Lakers exit was part of a “fire sale” to raise money amid federal investigations, and insisting the Dodgers are not for sale. The press release marks the most substantial public statement since news broke that Walter’s companies are under parallel investigations by the U.S. Securities and Exchange Commission and federal prosecutors in the Southern District of New York. “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 statement says. “It is important to set the record straight. TWG stands firmly behind the integrity of its business and remains focused on continuing to deliver value to its stakeholders.” The issues at hand mirror claims made in a 2014 lawsuit—that money one of the plaintiffs paid into her life insurance policy was used to fund a $35 million loan that was connected to the purchase of the Dodgers. Although that suit was dropped one day after it was filed, the forensic accountant who helped build the case recently told Front Office Sports, “My clients seemed pleased, that’s all I can say.” In Wednesday’s statement, TWG says, “the allegation that the Los Angeles Dodgers were acquired or have been funded improperly is false and not supported by the facts.” It also notes the 2012 deal was “subject to significant scrutiny and complied with all rules and regulations that govern the purchase of Major League Baseball teams.” Further, it says the Dodgers “have the highest revenue in baseball,” and that the team’s revenue “significantly exceeds” its payroll obligations.

Front Office Sports