Lakers' $12.5B Sale to Iger and Kushner Sparks Family Feud

The Los Angeles Lakers are set to be sold for a record $12.5 billion to a group led by former Disney CEO Bob Iger and venture capitalist Joshua Kushner, just 14 months after Mark Walter bought the team for $10 billion Source: AP News. The deal, which would make the Lakers the most valuable NBA franchise, is pending approval by the NBA Board of Governors Source: Al Jazeera.

The Buss family dispute

The sale has triggered a public rift among the Buss family, who have owned the Lakers since 1979. Five of Jerry Buss's six children voted to sell the family's remaining 17.8% stake to Iger and Kushner, but governor Jeanie Buss is contesting the move Source: AP News. Her attorney argues that a 2017 court order requires her approval for any sale, and that selling would violate NBA rules requiring controlling owners to hold at least 15% Source: CNBC. The siblings, however, say they remain united in their decision to sell Source: AP News.

Walter's financial troubles

Walter's decision to sell comes amid a federal investigation into his insurance empire, with reports of undisclosed loans and a probe by the SEC and federal prosecutors Source: Fox Business. TWG Global, Walter's holding company, has agreed to cut up to $6.5 billion in related-party investments from Delaware Life Insurance Co. Source: Fox Business. Walter is also reportedly looking to sell his stake in Chelsea Football Club Source: CNA.

Impact on team valuations

If approved, the sale would increase the average NBA team value by 21% to $6.68 billion, according to CNBC's analysis Source: CNBC. The Golden State Warriors would remain the most valuable team at $13 billion, while the New York Knicks and Chicago Bulls would see the biggest percentage increases Source: CNBC.