P.E. Firm Plays Hardball With Former Baseball Star

Apr 7 2009 | 2:44am ET

As another baseball season begins, one former All-Star finds himself on the wrong side of a game of high-stakes hardball. Lenny Dykstra is reportedly broke and at risk of losing his $18 million California mansion and private jet to a private equity firm.
 
Index Investors gave Dykstra an $850,000 bridge loan in November to help his struggling magazine, The Players Club, meet expenses, according to the New York Post. That loan was secured with by Thousand Oaks estate, which he purchased from hockey legend Wayne Gretzky and has been described as the crown jewel of the exclusive Lake Sherwood Country Club Estates.

But the firm filed foreclosure papers March 11 after Dykstra, who played for the New York Mets and Philadelphia Phillies, allegedly missed making payments, which were supposed to begin in January. Washington Mutual then filed its own notice of default on his $12 million mortgage on March 18.

Dykstra's Gulfstream II was also impounded in Cleveland in February after a creditor said the ex-slugger failed to pay $228,000 for interior renovations to it. The work mainly involved the installation of a state-of-the-art entertainment system.

The former centerfielder also is targeted in a dozen lawsuits by ex-employees and creditors who say they've been stiffed by him.


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Editor's Note