The Los Angeles Lakers' ownership structure is in flux as current governor Jeanie Buss navigates a legal challenge to prevent her siblings from selling their 17.8% stake in the team.
Mark Walter recently agreed to sell his shares to Josh Kushner and Bob Iger for a reported $12.5 billion, a transaction that could impact Buss's ability to remain the team's governor. The NBA requires a governor to hold at least a 15% ownership stake in a franchise.
Buss's siblings, Jim, Johnny, Janie, Joey, and Jesse Buss, are attempting to sell their minority share to Kushner and Iger. If successful, this sale would reduce Jeanie Buss's ownership stake below the 15% threshold, potentially forcing her out of her role as governor. Kushner is expected to become the team's governor upon the completion of the purchase, according to a source close to the NBA.
In response, Jeanie Buss has filed a 97-page petition in Los Angeles Superior Court seeking to block her siblings' sale. Her legal strategy includes maintaining her current ownership stake, which was part of a prior agreement with Walter when the Buss family sold the team. Should she succeed in preventing the siblings' sale, she would retain the necessary ownership percentage to continue as governor for at least the next four years.
Some minority owners have expressed support for Buss remaining as governor. Dr. Patrick Soon-Shiong, who owns 4% of the Lakers, and Ed Roski Jr., who owns approximately 3%, have indicated they do not intend to sell their shares. They believe Buss is the right person to preserve and grow the value of their investments.
However, even if Buss is open to acquiring additional ownership stakes to meet the 15% requirement, her options appear limited. The stated intentions of Soon-Shiong and Roski mean that approximately 7% of the franchise will not be available for Buss to purchase from other minority owners. The possibility of acquiring shares directly from her siblings is considered technically possible but realistically improbable due to past acrimony and the significant financial investment required, especially given the team's increasing valuation.
The ownership dispute has intensified over the past three weeks, creating a complex situation for the Lakers' leadership. Walter's agreement to sell his shares comes while his business empire is reportedly under federal investigation for potential loan fraud and business wrongdoings.