Mid-August is typically quiet in basketball, but NBA team owners are facing significant Wall Street troubles. Mark Walter, co-founder of Guggenheim Partners, is under investigation by US authorities regarding his life insurance empire's private credit holdings. As a result, he's selling the Los Angeles Lakers to Bob Iger and Josh Kushner for $12.5bn, which would be the highest price ever paid for a sports team. US prosecutors have subpoenaed Walter's insurance companies, forcing them to cut holdings of affiliated assets.

Phoenix Suns owner Mat Ishbia is also struggling. United Wholesale Mortgage reported a $603mn loss on a bad interest rate hedge. The strategy backfired when UWM lost a deal to a rival bidder in March, causing rates to surge. To address the loss, UWM announced a $2.1bn capital injection led by Oaktree Capital Management, with Ishbia contributing at least $150mn. Oaktree gained two board seats and control over dividend policy.

In other news, Nelson Peltz's Trian Fund Management is preparing a take-private bid for Wendy's with backing from Blue Five Capital. Legal AI startup Legora is seeking funding at double its previous $5.6bn valuation, highlighting intense AI interest. Meanwhile, J Crew continues facing challenges under Anchorage Capital's ownership, with tariffs and management turnover impacting performance.