LOS ANGELES/NEW YORK, Aug 12 (Reuters) – Venture capitalist Joshua Kushner and former Disney CEO Bob Iger are set to purchase the Los Angeles Lakers, with the deal valued at a record $12.5 billion, according to sources familiar with the matter on Wednesday.
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“As lifelong NBA fans, we are deeply honored for the opportunity to become stewards of the Los Angeles Lakers, one of the most iconic sports franchises in the world,” Iger and Kushner said in a statement.
“We have immense respect for the leadership and vision of Jerry and Jeanie Buss. Our long-term commitment is to build on that foundation, compete at the highest level, and serve this extraordinary team, its fans, and the city of Los Angeles.”
The two businessmen had previously been tied to a potential expansion NBA team in Las Vegas but seemingly ended that campaign with Wednesday’s news, which stunned fans and industry experts.
The deal requires sign-off from the board of governors. It is also pending due diligence by Kushner’s Thrive Eternal, a new investment strategy launched by his venture capital firm Thrive Capital, a source said.
Famed sports agent Leigh Steinberg called the sale a “shocking development” given that Walter had bought the Lakers only 14 months ago for $10 billion from the Buss family.
“It can’t just be for the premium of $2.5 billion dollars, although that’s a massive premium, a year later,” Steinberg told Reuters.
“This is one of the premier franchises in all the sports, being resold a year later, seemingly out of nowhere.”
MAGIC PRAISES IGER
“I want to congratulate my good friend Bob Iger and Josh Kushner on their purchase of the Los Angeles Lakers!” Lakers great Earvin “Magic” Johnson posted on social media.
“Laker fans, you couldn’t have two better owners. I’ve known Bob personally for over 40 years – he has always loved the Lakers and basketball and he will bring championships back to LA.”
As CEO of Disney, Iger oversaw sports network ESPN and built relationships with the NBA while the company entered into multi-billion dollar broadcast deals for games. He retired from Disney in March.
On the court, the Lakers are in a period of transition after the league’s all-time leading scorer LeBron James left the team in the offseason to join the Philadelphia 76ers.
Lakers guard Luka Doncic said there was “no limit to the potential for this iconic franchise.”
“I look forward to meeting Josh and Bob so we can get to work building something special in LA together,” he said on social media.
Walter called owning the Lakers “one of the great honors of my life.”
“It has been an extraordinary investment, but what I will carry with me is the community, the fans, and a city that treats this team as family,” he said in a statement.
“I am grateful to Jeanie Buss, the Buss family, the players, and the staff for welcoming me into this chapter. The Lakers belong to Los Angeles, and I have every confidence the best is still ahead.”
FIFA FALLOUT
FIFA said in July it planned to create a new commercial subsidiary, valued at about $20 billion, to hold the organization’s World Cup and other event-related businesses and sell minority stakes to outside investors.
Thrive Eternal was expected to lead a group of investors. The proposed transaction could have raised more than $4 billion for FIFA, with the proceeds intended in part to fund soccer development programs around the world.
FIFA later backed away from the plan after the criticism, though it said it would continue consulting on the proposed structure. Kushner’s brother, Jared, is U.S. President Donald Trump’s son-in-law. Jared Kushner was not involved in the proposed deal.
Reporting by Amy Tennery and Echo Wang in New York and Lisa Richwine and Rory Carroll in Los Angeles, additional reporting by Abigail Summerville; Editing by Alison Williams, Christian Radnedge and Pritha Sarkar
Source : Reuters