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Wednesday morning’s news that Mark Walter had sold the Lakers—less than a year after buying a controlling stake in the franchise—to former Disney CEO Bob Iger and venture capital executive Josh Kushner at a $12.5 billion valuation didn’t just surprise NBA fans. It shocked the sports owner class.
“It’s one of the most bizarre things I’ve ever seen,” said a source close to dozens of sports team owners. “My phone’s ringing off the hook with people saying they’re stunned.”
“Why would you sell a team within a year, and especially without an auction?” asked one former NBA governor. “Especially a premier asset like the Lakers.”
Adding to the confusion of the sale is that in the months since taking over the Lakers, Walter and his group had begun overhauling both the business and basketball sides of the franchise, signaling a plan to hold the team for years to come. Under Walter, the Lakers hired a new president of business operations and several other front-office executives, laid off more than a dozen employees, moved their G League team from South Bay to the Coachella Valley, and agreed to a jersey patch deal. Walter, who also owns the MLB’s Dodgers, even had some of his baseball executives advising president of basketball operations Rob Pelinka on how to build out the Lakers’ front office.
Yet ESPN’s Ramona Shelburne, who broke the news of the team’s sale to Iger and Kushner, told ESPN Radio on Wednesday morning that the deal came together “in the last few days.”
Multiple ownership sources who spoke with Front Office Sports wondered whether a federal investigation into Walter’s business practices could be the trigger for the unprecedented sale. Along with the Dodgers, Walter and his TWG Global holding company own stakes in Chelsea F.C., the Los Angeles Sparks, the Professional Women’s Hockey League and several auto racing teams. The investigation was first reported by Bloomberg in July. Bloomberg also reported Wednesday that TWG Global is trying to raise money from investors to help pay down loans tied to its insurance businesses, the same operations that have drawn the Justice Department’s attention.
“It’s the only reason I can think of,” one ownership source said.
Walter gave no explanation for the sale in a statement provided to ESPN.
“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,” he said. “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.”
The sale still needs approval from the NBA’s Board of Governors, which next meets in September.
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