Sports team valuations are completely out of control, and the latest proof is sitting right in Los Angeles. Bob Iger and Joshua Kushner have agreed to buy a controlling stake in the Los Angeles Lakers at a staggering $12.5 billion valuation.
Let that number sink for a second. Twelve and a half billion dollars.
If you are keeping score, this marks the second time the iconic NBA franchise has changed hands in roughly a year. Billionaire Mark Walter bought his majority stake from the Buss family in a deal valuing the club at $10 billion. That transaction felt astronomical at the time. Now, barely a year later, the price tag has jumped another two and a half billion dollars.
How We Got Here So Fast
You might wonder why Mark Walter is unloading the crown jewel of Los Angeles sports so quickly after acquiring it. Behind the scenes, Walter—the CEO of Guggenheim Partners and owner of the Los Angeles Dodgers—has faced heavy scrutiny from federal investigators looking into financial and private-credit dealings tied to his empire. While Walter has denied any wrongdoing, the pressure is real.
Enter Iger and Kushner.
Before setting their sights on the purple and gold, both men were heavily linked to efforts to secure an NBA expansion team in Las Vegas. Building an expansion franchise from scratch takes years of political maneuvering, arena financing, and roster building. Why gamble on an untested market when you can buy an established global brand with seventeen championships and automatic cultural relevance?
By stepping in to buy out Walter, Iger and Kushner completely bypass the wait for expansion. They get immediate entry into the upper echelon of professional sports ownership.
The Business Behind a $12.5 Billion Price Tag
To understand why a basketball team commands a twelve-figure valuation, you have to look past the hardwood. Teams like the Lakers operate as global media conglomerates, real estate plays, and lifestyle brands wrapped into one.
Iger brings decades of media dominance to the table. As the former chief executive of Disney, he understands content creation, international distribution, and monetization better than almost anyone alive. He also already dipped his toes into sports ownership by purchasing the NWSL's Angel City FC alongside his wife, Willow Bay.
Kushner, the founder of Thrive Capital and a longtime tech investor with early bets on companies like Instagram and Spotify, brings a different kind of financial horsepower. His venture background means the Lakers will likely lean heavily into digital innovation, global fan engagement, and next-generation streaming integration.
This partnership blends traditional media royalty with venture capital agility.
What Happens to Jeanie Buss and the Legacy
For decades, the Buss family was synonymous with Lakers basketball. When Walter took over the majority stake, Jeanie Buss remained the controlling governor under an agreement designed to protect the team's identity.
Under the new terms negotiated by Iger and Kushner, the transition aims to preserve stability. The new co-owners released a joint statement emphasizing their deep respect for Jerry and Jeanie Buss, calling themselves stewards of a global institution.
Yet, sports business moves fast. Even if leadership stays steady on paper during the transition, a $12.5 billion valuation demands a return on investment that old-school sports ownership never had to worry about. Expect new revenue streams, aggressive international marketing, and technological changes around how fans consume games.
The Ripple Effect on the Rest of the NBA
Every time a team sells, the baseline shifts for every other owner in the league.
When Michael Jordan sold his stake in the Charlotte Hornets a few years ago at a $3 billion valuation, people thought the market had peaked. Then the Boston Celtics sold for over $6 billion. Walter pushed it to $10 billion, and now Iger and Kushner have smashed past the ceiling at $12.5 billion.
Smaller-market owners are popping champagne right now because their equity just skyrocketed on paper. But it also prices out traditional family ownership groups. Buying an NBA team is no longer a rich person's hobby. It requires institutional capital, private equity backing, or tech-billionaire wealth.
The deal still needs formal approval from the NBA Board of Governors during their upcoming meeting, but that is widely expected to be a formality. Once the ink dries, the modern era of sports ownership officially begins, and the financial landscape of professional basketball will never look the same.
