Lakers deal would set a North American sports valuation record

Venture capitalist Josh Kushner and former Disney chief executive Bob Iger are set to buy the Los Angeles Lakers for $12.5bn, according to sources familiar with the matter. The proposed transaction would set a record valuation for a North American sports franchise.

The deal is not yet complete: it requires approval from the NBA’s board of governors and remains subject to due diligence by Thrive Eternal, a new investment strategy launched by Kushner’s venture capital firm, Thrive Capital.

What the proposed sale includes

Billionaire Mark Walter bought a majority stake in the Lakers last year in a transaction that valued the team at $10bn. The NBA board of governors approved that deal in October.

Iger and Kushner said they were honoured to become stewards of the Lakers and pledged a long-term commitment to build on the foundation established by former owners Jerry and Jeanie Buss, compete at the highest level and serve the team, its fans and Los Angeles.

Why the ownership change matters

The proposed purchase comes as the Lakers enter a period of transition on the court. LeBron James, the NBA’s all-time leading scorer, left the team in the offseason to join the Philadelphia 76ers.

Iger previously oversaw ESPN and developed relationships with the NBA during his time as Disney’s chief executive. He retired from Disney in March. He and his wife, Willow Bay, also acquired a controlling stake in National Women’s Soccer League club Angel City FC.

Approval and other business ties

Kushner and Iger had previously been linked to a potential NBA expansion team in Las Vegas. The Lakers announcement appeared to end that effort.

Kushner’s investment vehicle, Thrive Eternal, was expected to lead a group in a proposed FIFA commercial subsidiary plan. FIFA later stepped back from that plan after criticism from European football officials and others, while saying it would continue consultations. Jared Kushner, Josh Kushner’s brother, was not involved in the proposed FIFA transaction.

Walter, who also owns Major League Baseball’s Los Angeles Dodgers, faces a federal probe into links between investments held by his insurers and affiliates, according to reports cited in the source material. The proposed Lakers sale still needs the NBA board’s sign-off.