The Buss family has sold their majority stake in the Los Angeles Lakers amid escalating operational costs in today’s NBA landscape. Mark Walter will purchase the Lakers at a $10 billion valuation and is better positioned from a cash perspective than the Buss siblings. The transaction addresses financial constraints that have limited the franchise’s competitiveness against deep-pocketed ownership groups.
The Buss family’s unique position as single-business owners distinguished them from most NBA ownership groups. Unlike competitors such as Steve Ballmer or the Adelson family, the Lakers operated primarily on team-generated revenue without significant external income streams.
“Most of these owners now, this is a part of their portfolio. It’s not the only thing in their portfolio,” a league executive said.
The Lakers’ 20-year, $3 billion television rights deal with Spectrum beginning in 2012 provided crucial funding. However, the declining regional sports network industry made this revenue source increasingly unreliable for long-term sustainability.
Despite the massive television contract, the franchise couldn’t match spending by billionaire owners like Ballmer. This financial gap created competitive disadvantages in both visible and behind-the-scenes operations.
“With the way the league is going, I don’t think they could afford to be in this business. It just costs too much day-to-day,” an executive said of the family’s decision.
Since Jerry Buss purchased the team in 1979, the Lakers have won 11 championships and maintained a 60% winning percentage. Under Jeanie Buss’s leadership since 2013, the team spent over $1.5 billion in salaries and luxury tax, ranking eighth league-wide according to ESPN’s Bobby Marks. Under the NBA’s new collective bargaining agreement, the luxury tax penalties are even more punitive and difficult for team to financially sustain.
The franchise captured its 17th title in 2020 and remains the NBA’s most recognizable global brand. Sources indicate Jeanie Buss will continue as team governor for several years following the ownership transition.
“This is a good move. The Lakers can finally be run like a real business,” said one league source with frequent franchise interactions.
