A dramatic dispute within the Buss family has emerged over the future ownership of the Los Angeles Lakers, with team governor Jeanie Buss challenging a reported decision by her siblings to sell the family’s remaining stake in the NBA franchise.
The Buss family has reportedly voted to sell its remaining 17.8 per cent stake in the Lakers to new majority owners Bob Iger and Joshua Kushner, who agreed last week to purchase Mark Walter’s controlling stake in the franchise at a record $12.5 billion valuation.
However, Jeanie Buss has challenged the reported family decision, arguing that the sale of the family’s remaining shares cannot be completed without approval from the other trustees, including herself and her younger siblings, Janie and Joey.
Through her attorney, Jeanie Buss reportedly sent a letter to her brothers’ lawyers stating that any votes to sell the family’s stake would be invalid.
The letter cited a 2017 court ruling concerning Jeanie Buss’ role and argued that the family’s shares must be handled in a way that preserves the minimum ownership requirement needed for her to remain the Lakers’ governor.
“The co-trustees are bound to vote the Los Angeles Lakers, Inc. shares to ensure that the minimum 15% ownership requirement is maintained in order to ensure that Jeanie Buss may remain controlling owner,” the letter stated.
It further warned that attempts to sell the shares without the required approval could constitute a breach of trust and fiduciary duty.
The dispute threatens to add another dramatic twist to the Lakers’ proposed ownership transition.
The six Buss siblings inherited ownership of the franchise following the death of their father, legendary Lakers owner Jerry Buss, in 2013.
Jeanie Buss has remained the Lakers’ governor through the ownership changes and was expected to continue in that role for at least five years after Walter’s purchase of the controlling stake was approved last October.
However, NBA governors are required to own at least a 15 per cent stake in their respective franchises. If the Buss family sells its entire remaining interest, Jeanie Buss could potentially lose her eligibility to serve on the NBA’s board of governors.
The proposed transaction involving Iger and Kushner must still receive approval from the NBA board of governors.
With the Buss family now divided over the sale of its remaining shares, the ownership transition could face an unexpected legal and administrative battle before the deal is completed.
