In a significant turn of events within the Los Angeles Lakers’ ownership structure, Jeanie Buss has initiated a legal battle against her siblings regarding their decision to sell the family’s remaining 17.8 per cent stake in the franchise. This contentious situation unfolds as the siblings negotiate a high-profile deal with Josh Kushner and Bob Iger, a move that could see the team valued at an unprecedented $12.5 billion.
The Family Dispute
According to a letter acquired by The Associated Press, Buss, who has governed the Lakers since the passing of her father, Jerry Buss, in 2013, insists that any sale of the family trust’s stake requires the consent of the current co-trustees—herself, Janie, and Joey Buss. Her attorney, Adam Streisand, asserts that the co-trustees are obliged to maintain a minimum ownership threshold of 15 per cent to secure Jeanie’s position as Controlling Owner. He warns that any efforts to circumvent this requirement could amount to a breach of trust and fiduciary duty.
The siblings, who have been embroiled in conflict since their father’s death, reportedly voted to proceed with the sale to Kushner and Iger. If consummated, this transaction would effectively strip Jeanie Buss of her governance role, which she had been expected to hold at least until 2030 under a prior agreement with Mark Walter, the Dodgers owner who acquired a controlling stake last year.
Tensions Among the Buss Family
The Buss family’s dynamics have been fraught with tension, particularly following Jeanie’s dismissal of Jim Buss as the Lakers’ head of basketball operations in 2017. This action led to a lawsuit from Jim and Johnny Buss, who sought to remove Jeanie from her position. The siblings’ differing opinions on the recent sale highlight ongoing fractures within the family, with Jeanie being the sole dissenter against the final sale vote.
In a collective statement, the Buss siblings expressed their commitment to support the Lakers while acknowledging the necessity of moving forward with the sale. “We love the Lakers, Laker fans and will continue to support Los Angeles, but it is time to use this opportunity to move on and exit gracefully while we still can,” they stated.
The Broader Implications
The proposed sale to Kushner and Iger sees the duo acquiring approximately 65 per cent of the Lakers, raising their potential ownership to around 83 per cent if they reach an agreement with the Buss family. This transaction would not only mark a historic valuation for the team but also reshape the Lakers’ governance structure, as Jeanie Buss has been a pivotal figure in the franchise’s recent successes, including the 2020 championship.
Jerry Buss, a chemist and real estate mogul, transformed the Lakers into one of the most iconic franchises in sports history after purchasing them in 1979 for $67.5 million. Under his leadership, the team became synonymous with the “Showtime” era, winning five NBA championships in the 1980s and later securing more titles under the legacies of Kobe Bryant and LeBron James.
Looking Ahead: NBA Approval Needed
The sale agreement, still pending approval from the NBA’s board of governors, could take several months to complete. The outcome of this legal dispute may not only impact the Buss family’s future as owners but also set a precedent for ownership dynamics within major sports franchises.
Why it Matters
The ongoing saga regarding the Lakers’ ownership encapsulates the complexities of family businesses in the high-stakes world of professional sports. As the franchise navigates this internal conflict, the implications extend beyond the arena, potentially reshaping the landscape of NBA ownership and influencing how family legacies are preserved in the modern era of corporate sports. With Jeanie Buss at the helm for a decade, the resolution of this dispute will be pivotal in determining the future direction of a franchise that has long been a cornerstone of basketball culture.
