Bob Iger and Josh Kushner to Buy LA Lakers in Record $12.5B Deal

Former Disney CEO Bob Iger and venture capitalist Josh Kushner have agreed to acquire a controlling stake in the Los Angeles Lakers at a record $12.5 billion valuation, according to sources familiar with the transaction. The deal, which requires NBA approval, would mark the highest valuation ever placed on an NBA franchise, surpassing the previous $10 billion benchmark set in earlier discussions.

The buyers are purchasing the stake from Mark Walter, the current controlling owner. Walter, who has led the Lakers' ownership group since 2012, will retain a minority interest. The transaction is expected to close later this year, subject to league approval and customary closing conditions.

Why the Lakers Command a Premium

The Lakers are one of the most valuable franchises in global sports, with a brand that transcends basketball. The team's media rights, global fan base, and prime Los Angeles market contribute to its premium valuation. The $12.5 billion price tag represents a 25% increase over the $10 billion valuation reported in earlier negotiations, reflecting intense competition among buyers and the NBA's expanding media deals.

Iger, who led Disney for over 15 years and oversaw the acquisitions of Pixar, Marvel, and Lucasfilm, brings deep media and entertainment expertise. Kushner, founder of Thrive Capital, is a prominent tech investor with stakes in companies like Instagram and Stripe. Their combined experience in content creation and technology is expected to drive new revenue streams, particularly in digital media and international expansion.

Strategic Implications for the NBA and Media

The deal signals a broader trend of high-profile investors entering sports ownership, drawn by the stability of franchise appreciation and the potential for media rights growth. The NBA's current broadcast agreements, worth $24 billion over nine years, expire in 2025, and the league is expected to negotiate even more lucrative deals. The Lakers, as a marquee franchise, are positioned to benefit disproportionately from these increases.

Iger's background in streaming and content distribution could lead to innovative partnerships between the Lakers and media platforms. Kushner's tech connections may enhance the team's digital engagement and data analytics capabilities. However, some analysts caution that the high valuation may be difficult to justify based on current revenue, which is estimated at around $500 million annually. The deal's success will depend on the buyers' ability to unlock new value through media and technology initiatives.

What's Next

The NBA's board of governors will review the transaction, with a vote expected within the next few months. Approval requires a three-fourths majority of the league's 30 teams. If approved, Iger and Kushner will assume control of the Lakers' basketball operations, though they are expected to retain current general manager Rob Pelinka and head coach JJ Redick.

The acquisition is part of a wave of record sports deals, including the recent $6.05 billion sale of the Washington Commanders and the $4.6 billion valuation of the Phoenix Suns. As franchise values continue to climb, the Lakers' sale could set a new benchmark for sports team valuations globally.

For investors, the deal underscores the growing intersection of sports, media, and technology, and the premium placed on iconic franchises with global reach. The Lakers' new ownership group will be closely watched for how it leverages these assets to drive growth in an increasingly competitive media landscape.