In a stunning turn of events, billionaire Mark Walter is selling the Lakers to former Disney CEO Bob Iger and venture capital executive Josh Kushner in a deal reportedly worth $12.5 billion, less than 14 months after Walter reached an agreement to acquire the iconic NBA franchise.

The latest sale adds about $2.5 billion to the Lakers’ valuation since Walter and his partners acquired them from the Buss family and sets a valuation record for a control sale of a U.S. pro sports franchise, topping Walter’s own mark from last year.

Walter, however, has since come under federal investigation for alleged tax fraud involving insurance companies he controls. There are separate probes underway by U.S. prosecutors and the U.S. Securities and Exchange Commission.

It is unclear to what degree that situation is connected to the Lakers sale, if at all, but the reselling of the franchise still represents one of the most surprising events in recent sports history. 

“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,” Iger and Kushner said in a joint statement. “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.”

Walter, meanwhile, remains the lead owner for MLB’s Dodgers, the two-time defending World Series champion and a focal point in ongoing labor negotiations between the league and the MLB Players Association, as well as the WNBA’s Sparks, the Professional Women’s Hockey League, and several other sports-related ventures. There are no known plans to sell any of those holdings.

“Owning the Los Angeles Lakers has been one of the great honors of my life – an extraordinary investment, but what I will carry with me is the community, the fans, and a city that treats this team as family,” Walter said in a statement. “I am grateful to Jeanie Buss, the Buss family, the players, and the staff for welcoming me into this chapter. The Lakers belong to Los Angeles, and I have every confidence the best is still ahead.”

Kushner is the younger brother of Jared Kushner, the son-in-law of U.S. President Donald Trump, and was centrally involved in FIFA president Gianni Infantino’s ill-fated attempt to sell a portion of the governing body’s competitions to private investors. The White House, however, said Wednesday that the Lakers sale had nothing to do with Trump or his administration.

“It’s a little hard to fully fathom all the reasons for what’s going on, but a $2.5 billion lift in such a quick turnaround is definitely a nice day’s work, so to speak,” Irwin Kishner, co-chair of the sports law group at Herrick Feinstein, tells Front Office Sports. “Mark’s not a buy-and-sell guy. So that suggests that there may be something else percolating here.”

ESPN first reported the sale. Lakers minority owner Patrick Soon-Shiong quickly welcomed his new partners, posting on social media, “Go Lakers! Congrats Bob and Josh.” The agreement must still be approved by the NBA’s board of governors. Former Lakers superstar Magic Johnson also hailed the agreement, saying, “Laker fans, you couldn’t have two better owners. I’ve known Bob personally for over 40 years — he has always loved the Lakers and basketball and he will bring championships back to LA.”

Plenty of Ripple Effects

Iger stepped down from his Disney post in March, ceding the position with the ESPN parent company to Josh D’Amaro. Since then, Iger has been closely linked to a fast-developing chase for an NBA expansion franchise in Las Vegas, but this deal begins to answer definitively what his post-Disney professional life will look like.

While that Nevada push will certainly continue with several other suitors, including Golden Knights owner Bill Foley and former Suns owner Jerry Colangelo, among others, the Iger pivot sees him getting a team in his Los Angeles home.

Kushner, meanwhile, has a minority interest in the NBA’s Heat that will need to be sold due to this Lakers deal.

Within the Lakers, there will almost certainly be significant internal shifts. Since Walter’s takeover, he has steadily brought over many Dodgers executives, including president of business operations Lon Rosen, to help lead the basketball team. It will be highly telling what becomes of a storied franchise that has 17 NBA titles, but just one conference finals appearance since 2021, and recently lost LeBron James to the 76ers. 

Kishner said Walter’s sale provides a key jolt of liquidity at a point when pro team franchise values continue to rise at accelerating rates.

“The values keep going north, north, north, but I still think there’s more room to go,” Kishner said. “It’s still very limited supply and big demand out there in what is a very hot space. You add in the Lakers brand and their market, and it adds up to what you see here.”