Key Takeaways
- LeBron James secured nearly $300 million by issuing bonds backed by future income from off-court assets, including his lifetime Nike sponsorship, rather than his NBA salary.
- Two Sammons Financial life insurers bought the Guggenheim-managed bonds in 2018 and added nearly $60 million in 2022, leaving about $245 million on their books by the end of 2025.
- James’ representative called the securitization a common structure for someone with his wealth, said the NBA fully approved the 2022 deal, and denied any affiliation beyond the financing as former Lakers owner Mark Walter faces separate federal scrutiny.
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.
James' history with Guggenheim-linked investments also predates Walter's ownership of the Lakers. In 2020, Guggenheim was among the investors announced when James and Maverick Carter raised $100 million for their media company, SpringHill.
The newly reported financing adds another layer to what was already a complicated final stretch between LeBron James and Los Angeles. Earlier reports alleged that Lakers governor Jeanie Buss privately considered trading James in 2022 and later felt he wasn't sufficiently appreciative when the franchise drafted his son, Bronny James, in 2024.
James has since left Los Angeles for Philadelphia, while Bronny remains with the Lakers.
