The short version
- Jeanie Buss has instructed her legal team to invalidate a family vote selling the remaining 17.8 percent stake in the Los Angeles Lakers.
- Her siblings voted to sell their shares to a group led by Bob Iger and Josh Kushner, following Mark Walter's recent acquisition of the controlling interest.
- Buss argues that co-trustees are legally bound to maintain her minimum ownership threshold, making the sale a breach of fiduciary duty.
A significant legal dispute has emerged within the ownership structure of the Los Angeles Lakers, threatening to complicate one of the most expensive sports transactions in history. Jeanie Buss, the team's governor and controlling owner, is actively attempting to block her siblings from selling their remaining minority stake in the franchise. This move comes shortly after a public announcement that the broader Buss family had voted to divest its final 17.8 percent interest to a consortium led by former Disney chief executive Bob Iger and investor Josh Kushner.
The conflict centers on the interpretation of the Buss Family Trust, which holds the assets inherited from Jerry Buss after his death in 2013. While the family released a statement expressing their desire to exit gracefully and support the team's future under new leadership, Jeanie Buss contends that this decision violates her legal standing as governor. Her attorney, Adam Streisand, sent a formal letter to the representatives of her five siblings declaring any vote for the sale void. He asserted that such an action would constitute a breach of trust and fiduciary duty.
According to Streisand's correspondence, the co-trustees are obligated to ensure that Jeanie Buss maintains the minimum 15 percent ownership requirement necessary for her to remain the controlling owner. The letter warns that aiding in the sale of the remaining shares would be in contempt of court. This legal maneuver highlights a sharp division within the family regarding the future of the franchise, with Jeanie seeking to preserve her authority while her siblings appear eager to cash out their inheritance.
The backdrop to this internal struggle is a massive financial transaction that has already reshaped the NBA landscape. Mark Walter, who purchased the controlling interest from the Buss family last year for approximately $10 billion, recently agreed to sell his stake to Iger and Kushner for $12.5 billion. This deal, if finalized, would represent the most expensive sale of a sports team ever reported. Walter stands to profit roughly $2.5 billion from this rapid flip, having secured Jeanie Buss's role as governor until 2030 in the initial agreement.
The Buss family has been involved with the Lakers since Jerry Buss acquired the franchise, along with the Los Angeles Kings hockey team and the Forum arena, for $67.5 million in 1979. Under their stewardship, the Lakers have won 11 NBA championships, bringing their total title count to 17, just one shy of the Boston Celtics' record. Jeanie Buss made history in 2020 by becoming the first female controlling owner to guide an NBA team to a championship, cementing her legacy and influence within the league.
The involvement of Josh Kushner adds another layer of complexity to the situation. Kushner, whose brother-in-law is Jared Kushner, has been linked to recent controversies in international sports governance. His venture capital firm, Thrive Eternal, was previously associated with an aborted proposal to sell stakes in FIFA competitions to private investors. This connection may raise additional scrutiny regarding the incoming ownership group's intentions and stability within the NBA community.
The resolution of this dispute will likely hinge on legal interpretations of the trust documents and court rulings. If Jeanie Buss succeeds in blocking the sale, it could delay or derail the $12.5 billion transaction, creating uncertainty for the new owners and the league. Conversely, if the siblings' vote is upheld, it would mark the complete exit of the Buss family from Lakers ownership after nearly five decades.
The NBA's board of governors is expected to review the transaction next month. Their approval is contingent on resolving any outstanding legal or ownership disputes. Until then, the Lakers remain in a state of limbo, with their future direction dependent on the outcome of this high-stakes family feud. The situation underscores the challenges of managing large sports franchises through complex trust structures and familial disagreements.
Fans and stakeholders are watching closely as the legal battle unfolds. The potential change in ownership represents a historic shift for one of the league's most iconic brands. Whether Jeanie Buss retains her position or the Iger-Kushner group takes full control, the implications for the Lakers' culture, strategy, and financial model will be profound. The coming weeks will determine whether the family's legacy ends with a unified exit or a contentious legal struggle.
This dispute also raises broader questions about governance in professional sports. As teams become increasingly valuable assets, the mechanisms for transferring ownership must balance legal requirements with the stability of the franchise. The Buss family's internal conflict serves as a cautionary tale for other ownership groups navigating similar transitions. The outcome will likely set precedents for how minority interests and controlling stakes are managed in future sales.
Sources behind this briefing
Go to the original reporting
- BBC Sport↗Buss trying to block her siblings' sale of family stake in Lakers
