NBA Commissioner Adam Silver just dropped a bombshell, telling reporters that the league found “no red flags” when they vetted Mark Walter as he took over majority ownership of the Los Angeles Lakers. This news is wild, considering Walter agreed to sell the Lakers to Josh Kushner and Bob Iger for a staggering $12.5 billion earlier this summer, all after reports surfaced that he was under investigation for allegedly using billions of dollars from insurance policyholder funds to buy sports teams without proper disclosure.
The $12.5 Billion Deal That Had ‘No Issues’
Talk about a whirlwind. Walter, who already had a minority stake, bought majority control of the Lakers back in June 2025. Fast forward to this summer, and suddenly there’s an investigation heating up. The allegations are serious, folks: misusing massive funds to snap up sports teams. Then, bam, Walter sells his majority share. So, what did the NBA know? Silver stated that during their full vetting process for Walter’s initial majority takeover, they “spoke to governmental agencies,” looked into the “heavily regulated insurance industry,” and even “spoke to other leagues in which he has investments.” His words? “We found no red flags.” Seriously? No red flags, even with these allegations now in the public eye? Silver says the league wasn’t investigating Walter themselves, and that these are still “allegations” being looked into, but it sure makes you wonder about the timing of that sale.
Silver’s Defense: What Really Goes Down in the Vetting Room?
When Pablo Torre hit Silver with a question about billionaires using NBA ownership to boost their public cred, Silver jumped right into defending the league’s vetting process, saying they take it “very seriously.” He admitted something pretty telling though: “Reporters can do things that traditional investigators can’t.” He even brought up Walter again, saying, “Even Mark Walter, as we sit here today, I know no more about him than I did when we…” The implication? Maybe traditional vetting misses stuff. Silver explained that they do “intensive database searching” and “interviews” with people who know the potential owners. He also tossed in that they’re “always reassessing to see if we can do more.” Sounds like they might need to do a lot more, especially when a massive sale like this happens right after an investigation goes public.
Walter’s Other Sports Holdings: Still in the Game
Despite the Lakers drama, Walter is still heavily involved in the sports world. He remains an owner of the Los Angeles Dodgers. And just this Wednesday, it was announced that Clearlake Capital scooped up his ownership interest in Chelsea, that English Premier League football club. So, while the Lakers chapter closed abruptly for him, Mark Walter is far from out of the game. It just begs the question, what will the NBA’s “reassessed” vetting process look like next time?
This whole saga really puts a spotlight on how the league checks out its owners. With the kind of money involved in NBA teams and the league’s global reach, transparency and trust are everything. How can fans feel confident in the process when a “no red flags” sign gets followed by such a quick, massive sell-off amid serious allegations? It’s a question the league needs to answer, and they need to answer it clearly for everyone.
This article was created with AI assistance and published under Seattle On Tap’s editorial standards. See our Editorial Policy.
Originally reported by Silver Screen and Roll.
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