Josh Kushner and Bob Iger are set to buy the Los Angeles Lakers in a blockbuster deal worth around $12.5 billion. If approved, the transaction would be one of the largest franchise sales in professional sports history and a historic ownership change for one of the NBA’s most storied franchises. The deal raises immediate questions about valuation, the Buss family’s role going forward, league approval and what new ownership would mean for the Lakers.
$12.5 Billion Deal Reported Would Be Historic
A $12.5 billion valuation would highlight the dramatic growth of NBA franchise values.
The Lakers have a mix of championship history, a massive international fan base, the Los Angeles media market, sponsorships, merchandise sales and lucrative broadcast deals.
Those perks distinguish the franchise from the vast majority of professional sports franchises.
If the valuation is right, the deal would set a big precedent for future NBA ownership sales.
Josh Kushner Offers Investment Depth
Josh Kushner is the founder of Thrive Capital, a leading venture investment firm with significant exposure to technology companies.
That background could provide a potential Lakers ownership group with a lot of financial muscle and experience in managing high-value investments.
Today’s professional sports franchises are increasingly recognised as not merely teams, but global media, entertainment, technology and consumer businesses.
So the investment experience of Kushner may be relevant far beyond the financing of the purchase itself.
Bob Iger Has Entertainment and Media Experience
Bob Iger could add another important dimension to the ownership group
In his role as CEO of The Walt Disney Company, Iger has managed some of the world’s largest entertainment brands and negotiated major media transactions.
That background could be especially good for the Lakers.
The franchise has always been at the intersection of basketball and Hollywood, so entertainment expertise is unusually relevant to its commercial strategy.
Buss Family Era Possibly Coming to an End
The Lakers have been part of the Buss family since Jerry Buss bought the franchise in 1979.
Under Buss’s ownership, the team became one of basketball’s signature brands, with championship eras that featured Magic Johnson, Kareem Abdul-Jabbar, Kobe Bryant, Shaquille O’Neal and other stars.
The sale of controlling ownership would thus be much more than a financial transaction.
It would mark the end, or at least a massive transformation, of one of the NBA’s longest-running ownership relationships.
NBA’s Approval Would Still Be Needed
Even if buyers and sellers have come to an agreement, ownership cannot just change right away.
NBA rules typically require league review and approval by team governors for transactions affecting controlling stakes.
Potential owners could be subjected to financial checks, background investigations and ownership structure requirements.
So an announced agreement and a closed transaction are two different steps in the process.
Lakers Brand Discusses Premium Valuation
One of the few NBA franchises to have real global recognition is the Lakers.
The organization’s history of championship success, star players, celebrity supporters and presence in Los Angeles provides it with commercial opportunities that go far beyond ticket sales.
Sources of income can include sponsorships, merchandise, premium seats, TV deals, licensing, international partnerships and other business ventures.
The commercial reach is one reason investors were able to put such a massive valuation on the franchise.
New Ownership May Spend Beyond Roster
A change of ownership can influence many facets of the organisation.
New investors may be interested in training facilities, technology, fan experience, sponsorship strategy, international expansion or other long-term commercial projects.
But spending big doesn’t equal success in basketball.
Even ownership groups with deep pockets are limited in how they can build a roster under NBA salary-cap and collective-bargaining rules.
Sources
- Los Angeles Lakers – Official ownership and organisational announcements of the franchise
- NBA – Ownership approval rules, league governance, official transaction confirmation
- Thrive Capital – Background info on Josh Kushner and his investing activities
- The Walt Disney Company – Corporate information and Bob Iger’s executive biography
- Sportico – U.S. sports-business reporting, ownership transactions and sports business valuations
