The Los Angeles Lakers were sold for a record $12.5 billion to a group led by Joshua Kushner and Bob Iger, marking the latest high-profile entry of private equity into professional sports ownership. The transaction, pending approval, follows Mark Walter’s 2025 purchase of a majority stake at a $10 billion valuation, which he later sold after 14 months. The deal would increase the average NBA team valuation by 21% to $6.68 billion, with the Golden State Warriors now valued at $13 billion and the New York Knicks and Chicago Bulls each rising 26%.
Private equity’s growing role in sports ownership
Private equity firms have increasingly invested in professional sports teams, with more than 74 North American professional teams now involving private equity, according to the CFA Institute. The trend reflects the financial demands of modern sports ownership, where teams require substantial capital to compete in a rapidly evolving industry. Historically, ownership was often tied to personal passion or local legacy, but financial returns now drive many transactions.
Impact on NBA team valuations
The Lakers’ sale sets a new benchmark for NBA team values, with the Warriors surpassing $13 billion and mid-tier teams like the Knicks and Bulls seeing the largest percentage increases. Valuations are based on factors including arena economics, market size, and investor interest, according to CNBC’s proprietary transaction database. The $12.5 billion deal represents a 20x multiple of the 2025-26 season revenue, the highest ever recorded for an NBA control stake.
Ownership shifts and long-term implications
The Lakers’ transition from the Buss family—who owned the team for over 45 years—to institutional investors highlights broader changes in sports ownership. Private equity firms, often backed by technology and software fortunes, are drawn to the sector’s growth potential and revenue streams. Analysts note that while financial returns are now a primary driver, the cultural and competitive stakes of team ownership remain significant.
The sale remains subject to league approval, a standard requirement for NBA transactions. If finalized, it would further cement private equity’s role in reshaping the financial landscape of professional sports.