LeBron James Borrowed Nearly $300M From Insurers Tied To Guggenheim In 2018

The useful part

The lending arrangement began while James was still with the Cleveland Cavaliers, ahead of his 2018 free agency decision to join the Lakers. The two insurers held approximately $245 million in bonds tied to James' LLC by the end of last year, after some debt was paid down and additional bonds were issued. A separate transaction in 2022 saw the same insurers provide roughly $60 million in additional financing around the time James signed a $97 million contract extension with the Lakers.

How it works

• A spokesperson for James described the arrangement as a standard financial structure for high-earning individuals.
• Guggenheim, led by Mark Walter, also appeared as an investor in James' media venture SpringHill Co.
• The financing arrangement adds context to Walter's broader use of insurance company assets to fund sports and private investments.

Details worth keeping

North American Company for Life and Health Insurance and Midland National Life Insurance Co., both owned by Sammons Financial Group, purchased the initial bonds issued by James' LLC, King James Funding, carrying a 4.8 percent interest rate. "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," the spokesperson said, adding that the 2022 transaction received third-party credit rating and full NBA approval.