NBA Owners Approve $10B Lakers Sale to Mark Walter

The NBA Board of Governors has given unanimous approval for the sale of the Los Angeles Lakers to Mark Walter. This landmark deal values the team at an astonishing $10 billion, marking the highest control-sale price in the history of team sports.

NBA Deal: $10 Billion Sale of the Lakers

Mark Walter’s longtime business associate, Todd Boehly, will take a limited partnership role in the franchise. The Buss family, the Lakers’ long-standing owners since 1979, will retain approximately 15% ownership. Jeanie Buss will remain as the club’s governor for at least five years.

Details of the Historical Transaction

• Sale Value: $10 billion
• Initial Purchase: Walter and Boehly acquired a 27% stake in 2021 for $5.5 billion.
• Previous Record: The Boston Celtics were previously sold at an estimated value of $6.1 billion.

The $10 billion agreement was reached in June, surpassing the previous sales record. Notably, it outshines other recent notable NFL deals, including a 2% stake sale in the Chicago Bears valued at $8.8 billion and Julia Koch’s 10% acquisition of the New York Giants at a valuation exceeding $10.5 billion.

Historical Context and Ownership Legacy

The Lakers have been a prominent feature in the NBA landscape for decades. Jerry Buss purchased the franchise in 1979 for $67.5 million. This included the Los Angeles Kings and the Great Western Forum, located in Inglewood, California.

Financial Milestones

The Lakers maintain the richest local television deal in basketball, with Charter Communications’ Spectrum brand set to pay nearly $200 million for the 2024-25 season. For the last season, the Lakers’ total revenue reached approximately $618 million, producing a revenue multiple of 16 for Walter’s acquisition.

The Future Under Walter’s Leadership

As co-founder and CEO of Guggenheim Partners, Walter also leads the ownership group for the Los Angeles Dodgers, where he has seen immense success. The Dodgers’ transformation under Walter is expected to inspire similar investments in the Lakers. Walter’s sports portfolio extends to include assets like Cadillac’s Formula 1 team and the WNBA’s Los Angeles Sparks.

Advisors in the Deal

• Financial Advisor: Guggenheim Securities
• Legal Advisors:
  • Davis Polk & Wardwell LLP for Walter
  • ArentFox Schiff LLP for the Lakers and Buss family

The swift closing of this $10 billion deal is anticipated, solidifying Walter’s role in shaping the future of the Los Angeles Lakers. The potential for growth and development under his leadership is evident, as expectations ripple through the NBA community.