Jeanie Buss is challenging her siblings’ attempt to sell the family’s remaining stake in the famous National Basketball Association (NBA) franchise, the Los Angeles Lakers.
Hours after the Buss family released a statement revealing its intention to sell its 17.8 percent ownership of the team to new owners Bob Iger and Josh Kushner, CNBC and ESPN reported that Jeanie’s lawyer sought to halt the siblings’ sale on legal grounds.
At issue is Jeanie’s status as the Lakers’ controlling owner. NBA guidelines require controlling owners or governors to own at least 15 percent of a franchise.
Fourteen months ago, Jeanie spearheaded the sale of the franchise to Mark Walter for $10bn, a then-record for a US professional sports franchise. The Buss family trust – which comprises Jerry Buss’s six children – voted to sell to Walter, although there was some infighting due to the perception that the process was rushed.
Part of the agreement with Walter provided that Jeanie would remain governor through 2030, but her siblings were terminated from their positions with the organisation following the sale.
Last week, Walter sold the Lakers to Iger and Kushner for the record-breaking price of $12.5bn, a sale yet to be approved by the NBA.
The Buss family – which has been either a primary or minority owner of the Los Angeles Lakers since 1979 – made their move on Monday afternoon, though it was not clear at the time that Jeanie was not on board.
“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 family said in a statement to ESPN. “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.”
Lawyer Adam Streisand replied on Jeanie’s behalf later on Monday, with a letter obtained by CNBC and ESPN addressed to siblings Jim, Johnny, Janie, Joey and Jesse Buss. He argued that a court ruled in 2017 that any sale of the Lakers required approval from the cotrustees, Jeanie among them.
“Pursuant to the JAB Trust and the attached Court Order,” Streisand added. “The cotrustees are bound to vote the Los Angeles Lakers, Inc shares to ensure that the minimum 15 percent ownership requirement is maintained in order to ensure that Jeanie Buss may remain Controlling Owner.”
“Any attempt by the cotrustees to do otherwise, and any attempt to aid or abet the cotrustees as such, would constitute a breach of trust, breach of fiduciary duty and be in contempt of court.”
Jeanie took over as the governor in 2013 following her father’s death.
Walter, the CEO and chair of diversified holding company TWG Global, owns MLB’s Los Angeles Dodgers and the WNBA’s Los Angeles Sparks. He is under federal investigation for alleged tax fraud involving four of his other business interests.
Should the sale go through, Iger and Kushner will own approximately 83 percent of the Lakers.
The NBA Board of Governors, which must approve this sale, does not meet until September 15-16 in New York.
