Mark Walter said he loved owning the Lakers but decided recently it was time to sell.
Bob Iger and Joshua Kushner wanted to own an NBA franchise and had the money for a big purchase.
The framework for a deal was consummated in a matter of days, Iger said, although the sale needs to be approved by the NBA Board of Governors.
Iger and Kushner paid $12.5 billion for the Lakers. Walter’s flipping of the franchise netted him a $2.5-billion profit after only 14 months of ownership. It is the highest-ever price paid for a sports team and comes as Walter’s business is facing a federal probe.
Kushner, whose older brother Jared is President Trump’s son-in-law, founded the Thrive Capital firm in 2009 and has amassed a net worth estimated by Forbes at more than $5 billion.
One of Thrive’s subsidiaries, Thrive Eternal, focuses on sports acquisitions, purchasing and selling a stake in the NBA’s Memphis Grizzlies before acquiring stakes in the Miami Heat and the MLB’s San Francisco Giants , among others.
Read more:Buying the Lakers cements Bob Iger's longtime dream of owning major sports franchises
Kushner and Iger were also championing a potential NBA expansion team in Las Vegas through Thrive Eternal until the opportunity to simply pay cash for the league’s most iconic franchise presented itself.
Iger befriended the Lakers’ current head coach JJ Redick when Redick played for the L.A. Clippers from 2013 to 2017. Iger has long been a Clippers fan, telling Redick on a podcast in 2021 that he grew up a New York Knicks fan and their rivalry with the Lakers made rooting for the purple and gold when he moved to L.A. in 2000 “not in my DNA.”
Why would he, without hesitation, become keen on the Lakers?
The Lakers are the “epitome of an eternal asset,” Iger told Bloomberg this week.
A spokesperson for Iger and Kushner said neither were available to speak to The Times until the sale of the Lakers is completed.
In April, Kushner wrote on social media that Iger “leads with boldness and conviction because he knows what he is building and why.” Their mutual admiration began in 2018 when their wives — former models who went on to have successful business careers — became friends.
Iger joined Thrive for a short time in 2022 after resigning from the Walt Disney Co., and returned to Kushner’s firm in March after serving a second stretch as Disney’s chief executive from late 2022 to earlier this year.
Iger is a close friend of NBA commissioner Adam Silver, who introduced Iger to his wife, Willow Bay, in the 1990s when she hosted the television show “NBA Inside Stuff.” Bay is now dean of the USC Annenberg School for Communication and Journalism.
Iger and Bay married in 1995 and moved from New York to Los Angeles in 2000. Soon, he was regularly attending Clippers home games. Owning the Lakers may never have crossed his mind until a week or so ago. Now he’s all in.
Read more:Bob Iger, Joshua Kushner to buy Lakers from Mark Walter's ownership group for $12.5 billion
“Grateful, appreciative, excited to own something that’s as iconic as the L.A. Lakers,” Iger told the California Post. “Josh and I are avid NBA fans. And [to] have an opportunity to own not just any NBA team, but the L.A. Lakers is extraordinary from a life experience perspective and business perspective. It’s still sinking in. We’re very excited.”
Iger acknowledged it is too soon to articulate a strategic plan.
“We are fans,” Iger told the outlet. “We respect the value that’s been created, both on the court and off. Our intention is to build this great franchise from a position of strength in many respects as an organization.
“It’s just premature to speculate at all about what we plan to do, because frankly, we haven’t made any plans yet. Again, we go into this with an appreciation of who the Lakers are. And we just want to build value from today on.”
Walter’s decision to sell the Lakers shocked the sports world. In his short tenure as owner, the team said goodbye to LeBron James, gave Austin Reaves a long contract extension, traded for impact center Walker Kessler and signed several complementary players.
Read more:Plaschke: Too many questions, not enough answers. Lakers sale doesn’t pass smell test
Walter is also majority owner of the Dodgers and the L.A. Sparks of the WNBA. He owns minority stakes in professional soccer teams Chelsea FC and RC Strasbourg Alsace and the Cadillac Formula One team. And he owns the entire Professional Women’s Hockey League, which named its championship trophy after Walter.
It became public recently that federal officials were investigating his business empire. The investigations by the U.S. attorney’s office for the Southern District of New York, the Securities and Exchange Commission and the Delaware insurance regulator are focused on $21 billion in possibly fraudulent loans made by two Delaware life insurers that Walter owns to companies also tied to him. Such potential conflicts of interest must be reported to regulators.
Walter and his firm have denied any wrongdoing. He has declined to answer questions about the sale and whether it was connected to the probe.
The Dodgers have said Walter has no intention of selling that team.
Iger, in interviews this week, described the deal as happening very quickly.
“We were involved in pursuing the new franchise in Vegas,” Iger told the California Post. “And while that happened, it was suggested to us that maybe Mark Walter would be interested in selling his stake in the Lakers. And we immediately decided that given the value of the franchise and the iconic nature of the team, that we would be really smart to pursue it. The deal came together in three days. It’s that simple.”
Simple, yet shocking.
“I love surprising the world,” Iger said.
This story originally appeared in Los Angeles Times.