Legal Battle Over Lakers’ Ownership Unfolds

Jeanie Buss, the Los Angeles Lakers governor, is legally challenging her siblings’ decision to sell the family’s 17.8% minority stake in the team. According to a letter obtained by The Associated Press, her siblings intend to sell to Josh Kushner and Bob Iger. This decision, first reported by ESPN and The Athletic, could end Jeanie Buss’ tenure as team governor. That role requires a minimum of 15% ownership.

Jeanie Buss’ attorney, Adam Streisand, wrote to her five siblings, saying their decision to sell couldn’t proceed without the approval of Jeanie, Janie, and Joey Buss, the current co-trustees. The letter emphasized that the co-trustees must maintain at least 15% ownership for Jeanie Buss to remain the Controlling Owner. Streisand stated any contrary action would breach trust and fiduciary duties, possibly leading to contempt of court.

Since Jerry Buss’ passing in 2013, Jeanie Buss has served as the Lakers’ governor. Last year she led the family in selling a controlling stake to Dodgers owner Mark Walter, valuing the team at $10 billion. Walter, facing a federal tax investigation, quickly negotiated a deal with Kushner and Iger for $12.5 billion, a record valuation in professional sports.

Kushner and Iger are reportedly buying approximately 65% of the Lakers from Walter. If they secure a deal with the Buss siblings, they would control around 83%, removing Jeanie Buss from her governor role, previously intended to last through 2030.

Family conflicts have persisted since Jerry Buss passed away. In 2017, Jeanie Buss dismissed Jim Buss from his basketball operations position. She subsequently faced a lawsuit from her brothers, who tried to remove her as the controlling owner. Disagreement over the Walter sale persisted, and Joey and Jesse were dismissed from their Lakers positions last November.

“We have decided as a family to sell the remaining Buss Family Trust shares to the Bob Iger group as part of the ongoing transaction,” the Buss family stated. “We love the Lakers, Laker fans and will continue to support Los Angeles, but it is time to use this opportunity to move on and exit gracefully while we still can.”

Streisand’s letter also accuses Joey and Jesse Buss of leaking damaging information to ESPN to undermine Jeanie Buss. The family’s patriarch, Jerry Buss, purchased the Lakers, the NHL’s Los Angeles Kings, and the Forum arena in 1979. The team gained fame in the 1980s for its “Showtime” style, securing five NBA titles with Magic Johnson and Kareem Abdul-Jabbar.

Despite becoming a major corporate entity, the Lakers stayed a family business. Jerry Buss employed elite players and coaches, acquiring five more championships with Kobe Bryant from 2000 to 2010, and another with LeBron James in 2020.

The sale to Kushner and Iger requires NBA board approval, potentially prolonging the process for months.