Bob Iger and Josh Kushner’s $12.5bn bid to buy the Lakers shows that NBA teams are no longer family dynasties, but quick flips for private equity sharks
For years, the NBA was built on the alliance of patient money and marketing pizzazz, and no team captured that curious mixture better than the Los Angeles Lakers. Through Showtime in the 1980s and the dominance of the Shaq-Kobe years, the Lakers became the benchmark for a league and a sport intent on global conquest: charismatic, ambitious, and flashy, a sporting-cultural amalgam in which athleticism and celebrity held equal rank. Through careful front office recruitment, savvy coaching, and the harnessing of Hollywood’s star power, the Lakers evolved from a team into a “brand,” establishing a template that virtually every other outfit in the NBA has felt compelled to mimic in the years since. But the razzle-dazzle on the court – the Laker Girls, Magic flinging no-look passes, Shaq smashing the glass, Jack Nicholson smiling his Joker smile in the front row, all eyebrows and mischief – depended on a far more staid and stable arrangement off it. Real estate investor Jerry Buss bought the Lakers for $16m in 1979, and remained the majority owner until his death in 2013, when his children assumed control of the franchise.
When Jerry Buss died, the Lakers were valued at $1bn. Now, the team looks set to be sold to former Disney CEO Bob Iger and venture capitalist Josh Kushner, the brother of Donald Trump’s son-in-law Jared, for $12.5bn. The sale is still under negotiation and will need to be approved by the NBA’s board of governors; the Buss siblings are also now bickering over whether to join the stampede and sell their minority 17.8% stake in the franchise to Iger and Kushner, which has added a subplot of Shakespearean family intrigue to proceedings. But in the likely event it goes through, the sale would make the Lakers the most valuable franchise in basketball. It would also signal an acceleration in private equity’s scramble to get its claws into the world of sport.
