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A limited liability company controlled by LeBron James borrowed nearly $300 million from two Midwestern life insurers advised by an arm of Guggenheim Partners, beginning months before the four-time NBA champion left Cleveland for the Los Angeles Lakers in 2018, according to insurance industry records reviewed by Bloomberg.
The previously unreported bonds were issued by James' LLC, King James Funding, and bought by North American Company for Life and Health Insurance and Midland National Life Insurance Co., both owned by Sammons Financial Group. They carried a 4.8 percent coupon and are not due until 2049. Rather than borrowing against his NBA salary, James securitised future off-court income — including his lifetime Nike endorsement.
The disclosure links one of the world's highest-earning athletes to the financing machine now under federal scrutiny. Guggenheim is led by Mark Walter, whose insurers face a Justice Department and SEC investigation into more than $20 billion in loans to affiliated businesses that were allegedly not properly disclosed. No charges have been filed, and nothing in the reporting alleges wrongdoing by James.
The insurers held roughly $245 million in James-linked bonds at the end of last year after paydowns and fresh issuance. A separate 2022 transaction provided about $60 million more, around the time James signed a two-year, $97 million Lakers extension.
A spokesperson for James called the arrangement routine. "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 the 2022 deal was credit-rated by a third party and received full NBA approval.
Guggenheim also invested in James' media company SpringHill Co., co-founded with Maverick Carter, in 2020. Walter agreed this year to sell the Lakers to Josh Kushner and Bob Iger for a reported $12.5 billion, roughly a year after buying control at a $10 billion valuation. Sammons has signalled on a recent investor call that it is reducing its financial ties to Guggenheim.
James, who became a billionaire in 2022 per Forbes, left the Lakers this offseason for the Philadelphia 76ers on a two-year, $8 million deal.
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