Economics
CEO Helps Brother, Again, With $100 Million Soccer Stadium Deal
- Banc of California keeps buying assets tied to leader’s family
- It’s the fastest-growing U.S. bank, yielding top stock returns
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Ten years ago Steven Sugarman, a former Lehman Brothers investment adviser, co-wrote a book on how to avoid stock losses. One of its top tips: “Beware of companies run by family and friends.”
Now, Sugarman is chief executive officer of the fastest-growing publicly traded U.S. bank -- a lender exhibiting some of the red flags listed in his book. Banc of California is riding high enough to pay $100 million for the naming rights on Los Angeles’s new soccer stadium, one of the richest prices ever in Major League Soccer. Sugarman’s brother is a minority investor in the team, marking the latest in a series of deals involving the CEO’s family and associates.