Just 14 months ago, Mark Walter bought the iconic Los Angeles Lakers for an NBA record $10 billion, ending the franchise’s run as a family-run business. Now he is flipping the team for a cool $2.5 billion profit.
In a stunning turn of events, Walter is selling the Lakers for a new record $12.5 billion to American businessmen Josh Kushner and Bob Iger, a story broken by Ramona Shelburne of ESPN. This is the most money ever paid for an American sports franchise.
This sale ultimately will have to be approved by the league’s Board of Governors (made up of the other 29 owners), but that seems a mere formality (as it was for Walter 10 months ago). Kushner already owns a minority stake in the Miami Heat and used to own part of the Memphis Grizzlies. Kushner and Iger were in discussions about buying the expected NBA expansion team in Las Vegas.
Kushner and Iger gave this statement to Shelburne:
“As lifelong NBA fans, we are deeply honored for the opportunity to become stewards of the Los Angeles Lakers, one of the most iconic sports franchises in the world. We have immense respect for the leadership and vision of Jerry and Jeanie Buss. Our long-term commitment is to build on that foundation, compete at the highest level, and serve this extraordinary team, its fans, and the city of Los Angeles.”
Walter issued this statement to Shelburne.
“Owning the Los Angeles Lakers has been one of the great honors of my life – an extraordinary investment, but what I will carry with me is the community, the fans, and a city that treats this team as family. I am grateful to Jeanie Buss, the Buss family, the players, and the staff for welcoming me into this chapter. The Lakers belong to Los Angeles, and I have every confidence the best is still ahead.”
It’s worth noting that federal investigators have been looking into Walter and his conglomerate and holding company, TWG Global, for alleged fraud tied to insurance companies it owns (based on reports from a whistleblower), according to reporting in the Wall Street Journal and The Los Angeles Times. Walter and TWG have denied any wrongdoing. It’s unclear if the investigations had any impact on the sale of the team. Walter is not selling the Los Angeles Dodgers as part of this deal.
It’s unclear what percentage of the team the Buss family will retain through this sale. It still had a 15% ownership stake after the sale to Walter, and Jeanie Buss was continuing as governor of the team, overseeing day-to-day operations.
Since taking over the Lakers, Walter has been aggressive in reshaping the Lakers’ front office and scouting staff, which had been one of the smallest in the NBA despite the size of the Lakers’ brand. The Lakers have been building out a much more robust and diversified front office, with Rob Pelinka still in charge as general manager. Walter made sweeping changes to business-side personnel as well, changing much of the organization.
Kushner is the younger brother of Jared Kushner, President Donald Trump’s son-in-law, however, Josh does not have a role in the White House. Kushner founded Thrive Capital, which is a venture capital firm that invested in companies such as Instagram and OpenAI, among others. Kushner is worth an estimated $5.2 billion, according to Forbes.
Iger is well known in Southern California for his two turns as the CEO of the Walt Disney Company, the second of which ended earlier this year. He is a consultant with Thive.
