Josh Kushner, a venture capitalist, is set to become a principal owner of the Los Angeles Lakers in a deal valued at $12.5 billion with former Disney CEO Bob Iger. This acquisition represents a notable rebound for Kushner, occurring less than two weeks after his $4.2 billion proposal for FIFA's commercial rights was withdrawn following backlash from European soccer officials.
The transaction, finalized on Wednesday, propels Kushner into a prominent position within American sports ownership. He previously held minority stakes in the Memphis Grizzlies and the Miami Heat, and his wife, Karlie Kloss, is a limited partner in the WNBA's New York Liberty.
Kushner and Iger are taking advantage of an opportune moment for the Lakers, who have changed hands for the second time in a year. The team was previously acquired by Mark Walter for $10 billion last year. Walter, CEO of Guggenheim Partners, is reportedly selling the franchise amidst a federal probe into his financial dealings.
This move to acquire the Lakers follows the collapse of Kushner's Thrive Capital bid to manage FIFA's commercial assets, a deal that faced opposition from UEFA and threats of a World Cup boycott. Kushner's business background is primarily in technology and finance, though he also has ties to his family's real estate development firm.
His father, Charles Kushner, founded Kushner Companies in 1985. Josh Kushner launched Thrive Capital in 2009 while pursuing an MBA at Harvard. He previously worked in distressed debt at Goldman Sachs and has built a net worth estimated at $5.2 billion by investing in early-stage technology companies. Thrive Capital has backed companies such as Instagram, Spotify, Stripe, Slack, and OpenAI. Kushner also co-founded the digital health insurance company Oscar Health.
The Lakers deal signifies a deepening financial relationship with Bob Iger, who had previously invested in Thrive Capital. Initially, Kushner and Iger had explored the possibility of acquiring an NBA expansion team in Las Vegas. However, they redirected their focus to the Lakers when Mark Walter's legal issues created an opening.
This latest venture is financed by Iger's personal assets and Thrive Eternal, a capital vehicle established by Kushner this year for long-term investments in sports franchises and cultural assets. Thrive Eternal's initial foray into professional sports was a minority stake in the San Francisco Giants baseball team in April.
Kushner's family background includes his brother, Jared Kushner, who served as a senior White House adviser, and his father, Charles Kushner, who received a presidential pardon and is the U.S. ambassador to France. While Josh Kushner identifies as a Democrat, his family's political connections have been a point of contention in his business endeavors, contributing to the opposition during his FIFA bid.
As part of the acquisition, Kushner and Iger have agreed to retain Jeanie Buss as the team's controlling governor for a minimum of five years, ensuring continuity in leadership during the ownership transition.