Los Angeles Lakers controlling owner Jeanie Buss has formally opposed the sale of her family’s 17.8% stake in the NBA team to Bob Iger and Joshua Kushner, according to a legal letter obtained by CNBC. The move contradicts a separate report from the Los Angeles Times stating the Buss Family Trust had decided to sell its remaining shares as part of a $12.5 billion transaction finalized last week.
Key developments:
- Jeanie Buss’s legal team argues in a letter to her siblings’ representatives that any vote to sell the stake is void, citing a 2017 court order that requires her consent as controlling shareholder. The letter warns that attempting to bypass her approval would constitute a breach of trust, fiduciary duty, and contempt of court.
- The Los Angeles Times reports the Buss Family Trust has officially decided to sell its remaining shares to Iger and Kushner, who purchased a majority stake from Mark Walter for $12.5 billion. The family stated in a release to ESPN that the decision was made to exit gracefully after 47 years of ownership.
Legal and structural context
The JAB Trust, established by the late Lakers owner Jerry Buss, holds the 17.8% stake and is co-managed by Jeanie Buss, Janie Buss, and Joey Buss. Under the trust’s terms and the 2017 court order, the co-trustees are required to maintain at least a 15% ownership to preserve Jeanie Buss’s status as controlling owner. Her attorney, Adam Streisand, asserts that any attempt to sell the stake without her approval would violate these conditions.
The transactions remain subject to NBA Board of Governors approval, which requires minority owners to hold at least a 15% stake. If the sale proceeds, Jeanie Buss would no longer qualify to serve on the board, as her controlling shareholder status would be tied to the trust’s ownership threshold.
Family statement and historical significance
The Buss family, which has owned the Lakers since 1979, announced its decision to sell in a statement to ESPN, expressing gratitude for the team’s legacy while acknowledging the need to transition ownership. The family transformed the franchise into a global brand under Jerry Buss’s leadership, blending Hollywood entertainment with sports. The sale marks the end of the family’s direct involvement in team operations, though the statement emphasized continued support for the Lakers and Los Angeles.
Next steps and implications
The NBA’s approval process for the transaction is pending. If approved, the deal would transfer full control of the Lakers to Iger and Kushner, ending the Buss family’s 47-year tenure. The legal dispute between Jeanie Buss and her siblings over the sale’s validity adds a layer of uncertainty to the process, as her opposition could delay or derail the transfer.
The Lakers’ valuation of $12.5 billion reflects the franchise’s status as one of the most valuable in professional sports, though the family’s decision to sell underscores broader shifts in team ownership structures, where private equity and corporate investors increasingly acquire stakes in sports franchises.