A Family Feud at the Top: The Lakers’ Governance Saga

Jeanie Buss, governor and controlling owner of the Los Angeles Lakers since 2013, is contesting her family’s decision to sell their remaining stake in the team to Bob Iger and Josh Kushner. The proposed sale would grant the duo an approximately 83% ownership share, prompting a stern objection from Jeanie’s lawyer, Adam Streisand.

At its core, this dispute revolves around complex family dynamics, governance rules, and potentially contentious legal precedent. As cotrustee responsible for maintaining the Lakers’ minimum 15% ownership requirement, Jeanie argues that any sale without her approval would be in breach of trust and fiduciary duty. In a letter obtained by CNBC and ESPN, Streisand effectively challenges the authority of Jeanie’s siblings to proceed with the sale.

The Lakers’ history is marked by episodes of sibling rivalry, but this latest development takes on added significance given the NBA’s rules governing ownership percentages. Under Jeanie’s stewardship since 2013, the team has achieved unprecedented success, including an NBA championship in 2020. The Buss family trust, comprising Jerry Buss’s six children, has a long history of ownership in the Lakers dating back to 1979.

While some may view this power struggle as a mere family feud, it is clear that Jeanie’s resistance to the sale is motivated by more than just a desire to protect her legacy. The decision to sell to Iger and Kushner raises questions about the long-term implications of this sale on the team’s governance structure. Would an 83% ownership share create undue influence over the organization? What would this mean for the NBA’s rules governing controlling owners and governors?

The involvement of Bob Iger and Josh Kushner adds another layer of complexity to this story. Both new owners have significant financial resources and expertise in their respective fields. Their role in this sale raises questions about the impact on the Lakers’ front office and coaching staff. Would they prioritize profitability over competitive success? As the NBA’s Board of Governors prepares to meet in September, these queries will undoubtedly be at the forefront of discussions.

The outcome of this governance saga has far-reaching implications for the league’s ownership structure and its most iconic franchise. The involvement of influential owners like Iger and Kushner raises concerns about the potential for undue influence over the organization. As the NBA waits with bated breath for the resolution, one thing is certain: this dispute will have a lasting impact on the Lakers’ future and the league as a whole.