Guggenheim Partners Announces $2.15BB Deal to Buy Th LA Dodgers?

[nathan.lee]

Thoughts??? The heads of Guggenheim Partners announce record deal of $2.15BB to buy the L.A. Dodgers. The executives have been candid about the fact that company money will be tapped to fund the deal. This is the same group that owns and operates Guggenheim Life, Security Benefit Life, and Equitrust insurance companies. Should insurance companies be investing in and overpaying for sports teams with investors' and policyholders' money?


A Costly Toy, the Dodgers, Subsidized by Others - NYTimes.com

 

[CHUMPS FROM OXFORD]

The Magic is back!....

 

[nathan.lee]

The Magic is back!....

And local favorite Stan Kasten former president of the Atlanta Braves.

Oh yeah,

Did you get my PM from the other thread?

 

[annuityseller]

O great does that mean I have to tell the little old lady I just sent it her annuity money to equitrust that she's now part owner of the dodger's!!!!!!!!!!

 

[nathan.lee]

O great does that mean I have to tell the little old lady I just sent it her annuity money to equitrust that she's now part owner of the dodger's!!!!!!!!!!

At least she is in the company of greats like Magic Johnson! haha

In all seriousness, my real concern with insurance companies being purchased by or majority owned by private equity firms is their profit time horizon versus the time horizon of the policy holders. Just look at what happened to The Hartford last month. As majority shareholder, John Paulson leaned heavily on the upper management to divest The Hartford's life and annuity divisions. Who is to say that in this prolonged low interest rate environment the Guggenheim will decide that their ROI on Equitrust and SBLI isn't sufficient and then disband those companies? I certainly don't have a crystal ball but those are the things that concern me when I read articles like this.

 

[thinktank]

Great point Nathan. I have a feeling we haven't heard the end of this. Once this becomes public knowledge, I can't imagine a slick lawyer not wanting to take a shot at Guggenheim for using client money to purchase an overpriced baseball team (aka - measuring stick for the ultra wealthy). Keep us posted on anything else you find out.

 

[annuityseller]

nathan.lee and think tank don't you 2 work for the same FMO (for lack of a better idea for your business model??)

 

[Pinkdog]

Good question annuityseller. Wonder if a response will come?

 

[thinktank]

Good question annuityseller. Wonder if a response will come?

Why wouldn't we respond? Of course Nate is part of Annuity Think Tank. He is all over our videos, he has an Annuity Think Tank email, and he even has an Annuity Think Tank link in his signature on this forum.

 

[nathan.lee]

Good question annuityseller. Wonder if a response will come?

Just for fun I'll respond too. Yes, I am a part of the Annuity Think Tank. Pretty sure I have been transparent about that anytime the question has been asked on this forum. My signature goes to our Annuity Digital Marketing program, my VM says "You've reached Nathan at Annuity Think Tank," and I am in this awesome Annuity Think Tank video!