Josh Kushner and Bob Iger have agreed to buy the Los Angeles Lakers for $12.5 billion, a record price for a US sports franchise, multiple sources told ESPN. The deal, confirmed by the two businessmen on Wednesday, tops the previous record set just last year, when Mark Walter purchased a controlling interest in the team for about $10 billion.
A record-breaking deal
The sale continues a rapid climb in NBA franchise values. Three years ago, Michael Jordan sold his majority stake in the Charlotte Hornets for $3 billion. The Boston Celtics were sold last year at a valuation just over $6 billion, which was then a record. The Lakers deal more than doubles that figure.
Kushner is the founder of venture capital firm Thrive Capital and the younger brother of Jared Kushner. Iger is the former chief executive of Disney. The pair described themselves as lifelong NBA fans in a joint statement.
Stewards of a storied franchise
"As lifelong NBA fans, we are deeply honored for the opportunity to become stewards of the Los Angeles Lakers, one of the most iconic sports franchises in the world," they said. "We have immense respect for the leadership and vision of Jerry and Jeanie Buss. Our long-term commitment is to build on that foundation, compete at the highest level, and serve this extraordinary team, its fans, and the city of Los Angeles."
The Lakers have won 17 championships, the second-most in NBA history behind the Boston Celtics' 18. The team finished fourth in the Western Conference last season before losing to the Oklahoma City Thunder in the playoffs.
What happens next
The sale still needs approval from the NBA's board of governors, a process that can take several weeks. The next board meeting is scheduled for next month in New York.
The news comes weeks after LeBron James left the Lakers following eight seasons to sign with the Philadelphia 76ers as a free agent. Kushner recently became a central figure in a separate controversy over a private equity proposal tied to FIFA's plan to sell minority stakes in World Cup commercial rights.