In its latest effort to quash rumors and concerns it will sell off more of its assets amid reports it is the subject of federal investigations into potential tax fraud, TWG Global said Wednesday that its stakes in both the Los Angeles Dodgers and its Cadillac Formula 1 team are not for sale.
The comments were made in a biting news release attacking the investigations and allegations of fraud.
The Securities and Exchange Commission and the U.S. Attorney’s Office for the Southern District of New York are investigating the company, and more specifically founder and CEO Mark Walter.
“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 began. “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.
“Despite what has been reported, there has been no fraud.”
Speculation about the potential sale of assets picked up last week when Walter agreed to sell his stake in the Los Angeles Lakers for a reported $12.5 billion — barely a year after purchasing majority ownership for $10 billion.
Shortly after the sale, Dodgers president Stan Kasten told the media, “The Dodgers are not being sold.”
In its statement Wednesday, TWG echoed Kasten’s words.
“Regarding the Los Angeles Dodgers, to be clear, the team is not being sold and no sale process has been initiated,” the statement read, before later adding, “Similarly, TWG is not considering exiting its stake in the Cadillac Formula 1 team or any other part of TWG Motorsports.”
“The allegation that the Los Angeles Dodgers were acquired or have been funded improperly is false and not supported by the facts,” the statement also added.
Among Walter’s other sports endeavors, he owns the WNBA’s Los Angeles Sparks, the Professional Women’s Hockey League and French top-flight soccer team RC Strasbourg while holding stakes in the Andretti Global motorsports operation and Chelsea of the Premier League in England.
–Field Level Media
