Legal wrangling over $12.5B Lakers sale shows how family trusts don’t guarantee a business stays in the family
Investors want to buy the basketball team for a record sum.
The Buss family's 47-year ownership of the Los Angeles Lakers is on the verge of ending, despite their patriarch's expressed wishes. A group led by former Disney CEO Bob Iger and Jared Kushner, son-in-law of former President Donald Trump, is seeking to purchase the team for $12.5 billion, setting a record for the highest price ever paid for a sports franchise.
Jeanie Buss, who has run the Lakers since her father's death in 2013, initially refused to participate in the sale, but her five siblings are ready to proceed. This transaction highlights the challenges faced by families when trying to maintain control over assets like professional sports teams through family trusts. The succession plan, reportedly outlined by Jerry Buss in a trust, aimed to ensure the family could continue to own and operate the Lakers for years to come.
However, the current dispute raises questions about who has the authority to sell jointly-held property in a family trust. If the Buss siblings sell their remaining stake, Jeanie Buss may lose her position as the Lakers' governor, as NBA rules require a governor to hold at least a 15% ownership stake. The fight over the Lakers sheds light on the complexities of family dynamics and the difficulties that can arise when multiple relatives jointly own high-value assets such as sports franchises.
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