Lakers owner Mark Walter and Thrive Capital founder Josh Kushner have agreed on all outstanding terms of the sale of the team at a $12.5 billion valuation, sources close to the negotiations told ESPN, in reporting by Ramona Shelburne. The two met Thursday, Oct. 29, to finalize the transaction and are expected to sign the formal agreement soon.
The Los Angeles Times reported that the meeting took place at Walter’s Florida home, and that the agreement, which still needs to be signed, will have to be reviewed by the NBA. The league’s board of governors will then have to approve the sale before it becomes official. Sources close to the negotiations said Kushner has assured Walter he has raised all the money necessary to complete the purchase.
Bob Iger, the former Disney chief executive, is Kushner’s partner in the deal. Kushner is expected to become majority owner, with Iger taking a minority stake and overseeing day-to-day operations, according to Front Office Sports. Walter agreed in August to sell the team to the two of them, about 10 months after he officially purchased it from the Buss family at a $10 billion valuation.
The Buss family’s remaining 17.8% stake is the subject of a separate legal dispute. Five Buss siblings voted to sell those shares using go-along rights, and Jeanie Buss, who controls the family trust, is challenging that vote in court. A court date is set for Dec. 8 if no settlement is reached.
Walter Is Narrowing His Holdings to the Dodgers
The Lakers sale looks like part of a wider pullback. Walter and Todd Boehly sold their small stake in Chelsea in September, the Financial Times reported, and Walter is reportedly looking to sell the Sparks. His company has said he will not sell the Dodgers.
So he is selling his NBA team within about a year of buying it while saying publicly that the Dodgers are staying, and a $2.5 billion gain on paper explains much of the appeal. For the Lakers, the question is less whether the money exists than how long control stays unsettled.
The Signing Comes Before the League Review
The next step is signing the formal agreement. After that the NBA reviews the financing and the ownership structure, and ESPN reported that league approval is expected by the end of this year or early next.
Three things are still open: the agreement has to be signed, the buyers are still adding minority partners, and the Buss stake remains in dispute.
Sources: Ramona Shelburne of ESPN; the Los Angeles Times; Front Office Sports; the Financial Times
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