10 Aug JEANIE BUSS CLAIMS TECHNICAL FOUL OVER SIBLINGS’ SALE OF INTEREST IN LAKERS
Jeanie Buss, governor of the Los Angeles Lakers, which gives her the right to run the team, is disputing the ability of her 5 siblings to sell the family’s 17.8% interest held in trust.
In August it was announced that the present controlling owner of the Lakers, Mark Walter, would sell his majority interest in the team to Bob Iger and Joshua Kushner for $12.5 billion dollars. Jeanie’s 5 siblings voted to sell the family interest in the team. Jeanie did not vote. The Buss family interest is held in a trust in which Jeanie is a co-trustee with 2 of her siblings, Janie and Joey. The trust has not been made public.
Jeanie’s attorney has argued her siblings cannot sell the team as a result of a 2017 court order which required the co-trustees of the trust to take all reasonable action available to them to make sure Jeanie would still be the controlling owner of the Lakers. Would the sale be a breach of fiduciary duty and in contempt of a court order?
When Mark Walter purchased the team last year, he honored the court order and had a provision which permitted Jeanie to be in control as governor of the Lakers for 5 years. The 2025 agreement had a “tag along” provision which gave the family the right to sell all or most of their interest if Walter sold his interest at the same valuation (dollars per interest).
However, the original trust stated it took a majority of the 6 Buss children (4 out of 6) to agree to the sale of trust assets which conflicted with the 2017 court order.
Under NBA rules, you must own 15% of the team to be the governor (controlling owner) of the team. If the sale by her siblings is consummated, then Jeanie would be left with a 3% interest (and would no longer be able to serve as governor of the Lakers and be the controlling owner).
A court will have to determine what controls – the original trust, the 2017 court order or the 2025 agreement with Mark Walter.
Although the sale from Walter to Kushner and Iger will likely go through, the sale of the Buss family may take years of litigation if a settlement agreement is not reached. Perhaps Jeanie could buy her siblings interest or the interest of other minority owners so she can have 15% ownership interest and be in control of the Lakers.
One provision in the Buss trust gives an incentive for the Buss siblings to sell their interest. The provision states that the last surviving sibling gets the entire interest of his or her deceased siblings. In other words, instead of their interest going to their descendants, it would go to their surviving siblings. Thus, it would be a gamble of around $500 million if they didn’t sell their interest.
The battle between the Buss family may go into overtime!
If interested in learning more about this article or other estate planning, Medicaid and public benefits planning, probate, etc., attend one of our free upcoming Estate Planning Essentials workshops by clicking here or calling 214-720-0102. We make it simple to attend and it is without obligation.