Josh Kushner and Bob Iger acquired a controlling ownership stake in the Lakers from Mark Walter for $12.5bil. Where did the money come from?
Is there a way to invest in sports teams? There are a lot more billionaires than there are teams, so prices are only going to go up.
DB2
Mark Walter, who purchased a controlling interest in the team from the Buss family last year at a $10 billion, is making over a billion dollars in the deal on a one year investment.
I don’t know the details, but where is the money coming from? There has to be a trade in options involved.
The NBA changed its rules to allow Private Equity operators to buy up to 20% of a team as minority owners. However, governance remains with an individually wealthy owner calling the shots.
intercst
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Heard a financial talking head the other day saying what differentiates one 300 foot luxury yacht from another? One owner has a professional sports team the other doesn’t.
Way back in the day, knew a couple locals that owned minor league franchises. One baseball (an MLB AA affiliate) and one minor league hockey (initially no affiliate but now part of the junior hockey league system). If you break even, you are doing great. Not too much different as you go up the food chain, just more zeroes attached. The “profit” comes from selling the team after 20-30 years. These things are more along the lines of vanity/ego projects.
The “big market” right now for buying sports teams is smaller/minor league European soccer teams. Even then it is $$$. Watch “Welcome to Wrexham” on Hulu, an interesting documentary about Ryan Reynolds and Rob McElhenny buying a run down club and trying to get promoted to the Premier League.
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The real definition of who owns versus who sells a team has to do with a justice department inquiry(heard elsewhere).