After Shams Charania’s report that the Buss family would sell their remaining stake in the Los Angeles Lakers, a letter from Jeanie Buss’ lawyer contesting it has become public.
Serious drama is brewing regarding the sale of the Los Angeles Lakers. On Monday, it was reported that the group led by Bob Iger and Josh Kushner was buying out the Buss family’s remaining stake.
While the news came from Shams Charania, ESPN itself countered this report within a few hours. Ramona Shelburne reported that Jeanie Buss was contesting her siblings’ right to decide to sell.
The report from Shelburne referenced a letter from Jeanie’s attorney. The body of the letter details the current Lakers governor’s entire claim regarding why any sale of the family’s stake isn’t valid.
The full transcript of Jeanie Buss’ lawyer’s letter regarding the sale of the Buss family’s Lakers stake
This decision to sell would affect Jeanie the most out of all the Buss siblings. If it went through, the 64-year-old would have to step down as the team’s governor immediately.
The trust that owns the Buss family’s share has three co-trustees, Janie, Joey, and, Jeanie. The letter from the Jeanie’s attorney suggests that all three need to consent to execute such an action.
“As you know, this afternoon, Shams Charania of ESPN falsely reported that the six Buss siblings voted to sell the 17.8% ownership stake in the Lakers to Josh Kushner and Bob Iger, and that my client, Jeanie Buss, is ‘out’ as controlling owner.
“This is just the latest instance of a years-long pattern whereby Joey and Jesse Buss leak false, defamatory and pernicious ‘information’ to Mr. Charania 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.
“In any event, any ‘vote’ by any of the Buss siblings would be and is void ab initio. Not only would such a ‘vote’ conflict with the clear and express requirement that the trustees of the Jo Ann C. Buss 2006 Children’s Electing Small Business Trust, dated September 1, 2006 (the ‘JAB Trust’), vote the shares of the Los Angeles Lakers, Inc. to ensure that Jeanie Buss remains controlling owner, but as I am certain you are aware, in April 2017, I obtained from the Los Angeles Superior Court, the attached Order on Petition for Instructions to Co-Trustees Concerning Appointment of Controlling Owner of the Los Angeles Lakers, Inc.
“The Court ordered, among other things, as follows: ‘The Co-trustees of the Trust are hereby instructed to take all actions reasonably available to them, including voting the Trust’s shares, to ensure that [Jeanie Buss] is elected as the Controlling Owner of the Lakers on an annual basis during [Jeanie Buss’s] lifetime absent a further order of this Court modifying the Trust based upon proof of circumstances justifying the modification under applicable law.’
“The Order remains in full force and effect. There has never been a modification of the Trust. No effort has ever been made to justify to the Court that there are circumstances for modifying the Trust, and there are no circumstances that could be proven to justify any modification.
“No sale of the JAB Trust’s 17.8% ownership interest in the Los Angeles Lakers, Inc. can be effectuated without approval by the current co-trustees, i.e., Jeanie, Janie and Joey Buss. Pursuant to the JAB Trust and the attached Court Order, 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.
“On behalf of Jeanie Buss, I demand that your clients make clear publicity that Jeanie Buss is the Controlling Owner of the Los Angeles Lakers and that your clients shall take no action on this supposed ‘vote’ to sell the 17.8% stake.”
It seems that Buss is quite motivated to ensure that she can retain her position with the Lakers for the immediate future, at the very least.
Considering Mark Walter’s situation, and the power and resources at the disposal of Iger and Kushner, only time will tell how the situation pans out.
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