Los Angeles Lakers governor Jeanie Buss is legally contesting her siblings' plan to sell the family's remaining 17.8% minority ownership stake in the team to Josh Kushner and Bob Iger. The move, detailed in a letter obtained by The Associated Press, challenges a decision that would require Buss to relinquish her role as the team's governor.
According to the letter from Buss' attorney, Adam Streisand, any sale of the family trust's ownership stake cannot proceed without the approval of the current co-trustees: Jeanie, Janie, and Joey Buss. The letter asserts that the co-trustees are bound to vote the Lakers' shares to maintain the minimum 15% ownership requirement necessary for Jeanie Buss to retain her position as Controlling Owner. Any attempt to do otherwise or to assist in such an action would constitute a breach of trust, fiduciary duty, and contempt of court.
The siblings had reportedly voted to sell the family trust's remaining interest in the 17-time NBA champion team, which was purchased by their father, Jerry Buss, in 1979. This decision marks a significant development in the ongoing family disputes since Jerry Buss' death in 2013.
Jeanie Buss has served as the Lakers' governor since 2013. Last year, she led the family's decision to sell a controlling stake in the team to Dodgers owner Mark Walter for a valuation of $10 billion. Earlier this month, Walter reportedly reached a deal to sell the Lakers to Kushner and Iger for $12.5 billion, a new record for a professional sports team.
Kushner, a venture capitalist, and Iger, former CEO of Disney, are reportedly acquiring approximately 65% of the team from Walter. If their deal with the Buss siblings also materializes, they would own about 83% of the Lakers, which would result in Jeanie Buss losing her governor role. Under the agreement with Walter, she was slated to keep this role at least through 2030.
The Buss siblings have experienced frequent conflicts since their father's passing. In 2017, Jeanie Buss fired her brother Jim from his position as head of basketball operations. This was followed by a lawsuit from her brothers, Jim and Johnny, who attempted to oust Jeanie from her controlling ownership position.
Not all siblings supported the sale to Walter. In November, Joey and Jesse Buss were dismissed from their front-office roles with the team. The family stated in a release that they had decided to sell the remaining Buss Family Trust shares to the Bob Iger group. "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," the family said.
Streisand's letter also accused Joey and Jesse Buss of leaking information to ESPN for years with the "malicious purpose of doing harm to the Los Angeles Lakers so long as Dr. Buss’s chosen successor, Jeanie Buss, carries out her father’s wishes."
Jerry Buss, a chemist and real estate investor, initially purchased the Lakers, the Los Angeles Kings, and the Forum arena for $67.5 million. Under his ownership, the Lakers achieved significant success, including five NBA titles between 1980 and 1988 during their famed "Showtime" era. The team has since won additional championships, with Kobe Bryant leading them to five titles and LeBron James securing the 17th in 2020.
The proposed sale to Kushner and Iger is subject to approval by the NBA's board of governors and could take several months to finalize.