LOS ANGELES (AP) - The Buss family's decision to sell a controlling stake in the Los Angeles Lakers at an unprecedented franchise valuation of $10 billion marks the end of nearly 50 years of ownership that was characterized by the dynamic and sometimes contentious relationships among eccentric family members. Under the leadership of the late Jerry Buss and his daughter, Jeanie Buss, the Lakers thrived as a unique family-run enterprise, making them one of the most valuable franchises in sports. The franchise's iconic gold uniforms and 17 championship trophies reflect its rich legacy.
The 21st century has witnessed a shift toward corporate ownership in sports, with franchise values reaching new heights as wealthy individuals and business magnates invest in this growing industry. However, the Lakers remained largely under family ownership until now. "The majority of businesses in this country are family-owned businesses," Jeanie Buss remarked in an interview earlier this year, emphasizing the complexities of working with family and the ultimate goal of building a successful legacy.
The Lakers have been owned by the Buss family since 1979, holding the longest active ownership tenure in the NBA. The recent agreement for the sale, which was confirmed by a source who spoke anonymously, signifies a historic transition for the franchise. Jeanie Buss, one of Jerry Buss’s seven acknowledged children, is poised to become extraordinarily wealthy from this lucrative deal. The move is met with optimism among Lakers fans as the buyer, Mark Walter, is known for his considerable resources and sound investment strategies.
Walter, who already owns 27% of the Lakers since 2021, is the head of Guggenheim Partners, which successfully turned around the Los Angeles Dodgers franchise after acquiring it for $2 billion in 2012. Under Walter's leadership, the Dodgers have consistently been a contender for World Series titles. Los Angeles Dodgers manager Dave Roberts commented on Walter's commitment to the city, stating that he is dedicated to producing championship-caliber teams and ensuring that the city feels proud of its sports teams.
In the Buss era, the Lakers were able to attract players by showcasing their championship history, the allure of sunny Los Angeles, and a family-business camaraderie. However, Walter's ownership represents a modern, resource-driven approach to building a consistently great team. With Guggenheim Partners managing an estimated $325 billion, Walter's financial expertise positions the Lakers to enhance their player scouting, development capabilities, and other operational functionalities to align with the franchise's prestigious branding.
Prior to this deal, the Buss siblings were not perceived as particularly wealthy compared to other team owners, and Jeanie Buss often hesitated to spend extensively on players. The new ownership is expected to remove financial restrictions that could hinder player acquisitions and other competitive elements, thereby enabling the Lakers to strive for excellence in a salary cap-restricted environment.
Magic Johnson remarked on social media that Jeanie Buss would only consider selling the team to someone she trusts to honor the legacy established by their father, Jerry Buss. With Marc Walter, whom she has a close friendship with, she can pass the reins with confidence, knowing his experience with the Dodgers will serve the Lakers well.
The transaction draws a parallel to historical transactions within the family: Jerry Buss purchased the Lakers, the NHL’s Los Angeles Kings, the Forum, and other assets for $67.5 million, becoming a prominent figure in sports history as he orchestrated an immensely successful era for the Lakers, securing 10 championships during his tenure.
Jeanie Buss, who became the Lakers' governor after her father passed away in 2013, has since navigated a series of ownership changes and operational adjustments. After making significant front-office changes, including the firing of her brother Jim, she managed to seek success with impactful player signings like LeBron James and Anthony Davis, leading to a championship win in 2020.
The recent deal is part of a broader trend in the NBA, where high-profile owners are selling their franchises to well-capitalized investment groups. Jeanie Buss remains the Lakers' governor for now, as she must retain a minimum ownership stake in the team. The sale of the Lakers, amid the evolving sports ownership landscape, signifies a significant shift for the franchise into a new era.
