LOS ANGELES (AP) — Los Angeles Lakers governor Jeanie Buss is legally contesting her siblings' plan to sell the family's remaining 17.8% minority ownership stake in the team to Josh Kushner and Bob Iger, according to a letter obtained Monday by The Associated Press.
ESPN and The Athletic first reported that the siblings had voted to sell the family trust's remaining interest in the 17-time NBA champion team purchased by their father, Jerry Buss, in 1979.
The decision would end Jeanie Buss' tenure as the Lakers' governor because that job requires at least 15% ownership of the team.
Jeannie Buss' attorney, Adam Streisand, wrote to representatives for her five siblings to state that any decision to sell the family trust's ownership stake could not be “effectuated without approval of the current co-trustees, Jeanie, Janie and Joey Buss.”
The letter further states that 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. Any attempt by the co-trustees to do otherwise, and any attempt to aid or abet the co-trustees as such, would constitute a breach of trust, breach of fiduciary duty and be in contempt of court.”
Jeanie Buss has been the Lakers’ governor since Jerry Buss’ death in 2013, and she led the family’s decision to sell a controlling stake in the Lakers to Dodgers owner Mark Walter last year at a valuation of $10 billion. Walter, who is under federal investigation for tax issues, abruptly reached a deal earlier this month to flip the Lakers to Kushner and Iger at a valuation of $12.5 billion, another record for a pro sports team.
Venture capitalist Kushner and former Disney CEO Iger are reportedly buying about 65% of the team from Walter. They would own about 83% if they reach a deal with the Buss siblings — and Jeanie Buss would lose the governor role that she had been slated to keep at least through 2030 under the deal with Walter.
The Buss siblings have been in frequent conflict since their father’s death, with Jeanie firing Jim from his job as the Lakers’ head of basketball operations in 2017, followed a week later by a lawsuit against her brothers amid an attempt by Jim and Johnny to oust Jeanie from her role as the Lakers’ controlling owner.
Not all of the six Buss siblings were in favor of the sale to Walter, and Joey and Jesse were fired from their front-office jobs with the team last November.
The siblings say they voted this month to sell their family's remaining interest in the Lakers, but Jeanie Buss claims any vote is void. ESPN reported that Jeanie Buss was the only sibling who didn't support the final sale.
“We have decided as a family to sell the remaining Buss Family Trust shares to the Bob Iger group as part of the ongoing transaction,” the Buss family said in a statement. “We love the Lakers, Laker fans and will continue to support Los Angeles, but it is time to use this opportunity to move on and exit gracefully while we still can.”
In his letter, Streisand said Joey and Jesse Buss have leaked information to ESPN for many years “for the malicious purpose of doing harm to the Los Angeles Lakers so long as Dr. Buss’s chosen successor, Jeanie Buss, carries out her father’s wishes.”
Jerry Buss was a chemist and real estate investor who bought the Lakers, the NHL's Los Angeles Kings and the Forum arena from Jack Kent Cooke for $67.5 million. The Lakers quickly entered a renaissance in which they became known for their flashy “Showtime” style of play while winning five NBA titles between 1980 and 1988 behind Magic Johnson and Kareem Abdul-Jabbar.
While the NBA and professional sports became increasingly more corporate, the Lakers remained essentially a family business despite their massive profile and steady success. Jerry Buss and the Lakers have employed many of the basketball world's greatest players and coaches of the past five decades, and Kobe Bryant led the Lakers to five additional championships between 2000 and 2010 before LeBron James added the 17th in 2020.
The sale agreement with Kushner and Iger still must be approved by the NBA's board of governors, and the process could take months.
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