LOS ANGELES – The Los Angeles Lakers are being sold for the second time in a year, going to businessmen Josh Kushner and Bob Iger for a record-breaking price.
This sale agreement is $12.5 billion, according to a person familiar with the terms who spoke to The Associated Press on condition of anonymity Wednesday because neither side revealed specific details of the latest stunning development with one of North America's marquee sports teams.
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ESPN first reported that Kushner and Iger are buying the NBA's most valuable franchise. The Lakers were valued last year at $10 billion — a record for a pro sports team — when Mark Walter purchased a controlling stake from the Buss family, which had owned the team since 1979.
Kushner, a venture capitalist, and former Walt Disney Company CEO Iger had been working together on landing a possible NBA expansion team for Las Vegas. By buying the Lakers, they don't have to wait until the possibility of expansion in the 2028-29 season at the earliest.
The sale still will need approval from the NBA’s board of governors, and that process can take several weeks. The next board meeting is set for September in New York.
The $12.5 billion price tag is not only a record for U.S. pro sports but a new summit in skyrocketing NBA franchise values. Only three years ago, Michael Jordan sold his majority stake in the Charlotte Hornets for a $3 billion valuation, while the Boston Celtics were sold last year to private equity mogul Bill Chisholm at a valuation of just over $6 billion.
Walter’s agreement to purchase a controlling stake in the Lakers at the $10 billion valuation last summer obliterated that mark, and now Iger and Kushner have pushed the bar even higher.
The 66-year-old Walter’s shocking decision to sell the Lakers after just 10 months of official ownership is reverberating throughout the team’s massive fan base, which appeared to be uniformly excited about the purchase last year. Walter has stewarded the Los Angeles Dodgers into the most successful stretch in franchise history, with three World Series championships in the past six seasons as the most aggressive spenders in baseball.
Multiple media outlets last month reported that Walter’s business empire is under scrutiny from both federal prosecutors and the Securities and Exchange Commission in tax fraud investigations.
The 41-year-old Kushner’s capital holding company, Thrive Eternal, was set to be the “anchor investor” in FIFA President Gianni Infantino’s plan to sell stakes in future World Cup profits. Infantino abandoned the idea on July 31. Kushner’s brother is Jared Kushner, son-in-law of U.S. President Donald Trump.
Josh Kushner currently owns a minority stake in the Miami Heat, and he previously owned a stake in the Memphis Grizzlies.
The 75-year-old Iger became one of Hollywood’s most well-known executives while he ran Disney for two lengthy stints between 2005 and last March, when he stepped aside. Iger and his wife, former sports journalist Willow Bay, are the controlling owners of NWSL team Angel City FC.
Walter’s purchase of the Lakers was approved by NBA owners last October. He originally bought a 27% minority stake in the team in 2021 before purchasing control of the team last year.
Walter and his partners also have ownership interests in the WNBA’s Los Angeles Sparks, English Premier League club Chelsea, the Professional Women’s Hockey League and the new Cadillac Formula 1 racing team.
When Walter bought his controlling interest in the Lakers, the deal specified that Jeanie Buss would stay on as the team's governor. With new ownership, it's unclear whether Buss will have a continuing role in the team she inherited along with her siblings from her father, Jerry Buss, who died in 2013.
The Lakers have won 17 championships going back to the franchise’s origin in Minneapolis, the second-most in NBA history behind Boston’s 18. It is a global brand, always at or near the top of the league’s merchandise-sales rankings.
This record sale price comes just weeks after LeBron James, the league’s all-time leading scorer, left the Lakers after eight seasons to become a free agent. James ultimately decided to sign with the Philadelphia 76ers.
The Lakers won their most recent title in 2020, and they have made the playoffs in each of the past four seasons. Their current roster is built around NBA scoring champion Luka Doncic, who is signed through the 2028-29 season.
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AP Basketball Writer Tim Reynolds in Miami contributed to this report.
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AP NBA: https://apnews.com/nba