Legal Dispute Halts Reported Sale of Buss Family’s Lakers Stake

Potential changes to the ownership structure of the Los Angeles Lakers have hit a significant legal roadblock. Following a report suggesting the Buss family intended to sell their remaining 17.8% stake in the franchise to a group led by Joshua Kushner and Bob Iger, team governor Jeanie Buss and her legal counsel have formally rejected the premise of such a transaction.

The controversy centers on a complex family trust established by the late owner Jerry Buss. Reports indicated that five of the six Buss siblings had sought a vote to liquidate the remaining shares to the incoming owners, a move that would ostensibly end the family’s control of the team dating back to 1979. However, Adam Streisand, attorney for Jeanie Buss, issued a letter arguing that previous legal rulings prevent a sale without the consent of the current co-trustees.

According to the legal correspondence, the trust requires the co-trustees to vote shares in a manner that preserves a minimum 15% ownership threshold. This specific threshold is critical for Jeanie Buss to maintain her role as Controlling Owner under NBA bylaws. The letter asserts that any attempt to sell the stake without this approval would constitute a breach of fiduciary duty and contempt of court.

The backdrop to this internal conflict is the recently announced $12.5 billion sale of the team from the estate of Philip Anschutz to the Kushner-Iger group. While the incoming owners initially expressed an intent to honor existing agreements and keep Jeanie Buss in her role, the current dispute highlights the fragility of those arrangements amidst family disagreements.

The situation has garnered significant media attention, including coverage from outlets such as NBC Sports and Comcast Corporation’s CNBC. The narrative initially suggested that the family had voted to exit their position entirely, marking the end of an era for the franchise. The swift legal rebuttal underscores that the ownership picture remains far from settled as the transition to new majority control progresses.

What to watch

• Further court rulings or legal filings regarding the interpretation of the trust agreement.
• Official statements from the NBA regarding the ownership transition and governance requirements.
• Any updates on the closing of the $12.5 billion sale to the Kushner-Iger group.

Source: original release