Lakers Sale Drama: How Family Trusts Fail to Keep NBA Teams in Family Hands

The potential sale of the Los Angeles Lakers for a record $12.5 billion is sparking a legal dispute within the Buss family, despite patriarch Jerry Buss’s efforts to keep the NBA franchise in the family. A group led by former Disney CEO Bob Iger and Joshua Kushner, brother of Jared Kushner, has proposed acquiring the team, but controlling owner Jeanie Buss opposes the sale. The disagreement centers on trust agreements established by Jerry Buss, who owned the Lakers since 1979 and structured its ownership through family trusts for his six children.

Under the trust’s succession plan, Jeanie Buss was designated as the team’s controlling owner, or "governor," following her father’s death in 2013. However, her five siblings have signaled support for selling their remaining stakes in the franchise, which would likely strip Jeanie Buss of her governance role. NBA rules require a governor to hold at least a 15% ownership stake, a threshold she may no longer meet if the family sells its shares. The proposed $12.5 billion valuation would shatter sports franchise sale records, surpassing even the $10 billion price tag from a 2025 sale involving businessman Mark Walter, who now intends to sell his stake to the Iger-Kushner group.

The legal battle hinges on the interpretation of Jerry Buss’s trust documents and a 2017 California court order that reaffirmed Jeanie Buss’s controlling role. Her attorney argues the trust mandates efforts to preserve her leadership, while her siblings assert the trust permits majority-vote decisions, including sales. Complicating matters, the 2025 deal with Walter reportedly included a "tag-along" provision allowing the trust to sell at the same valuation, which the current offer exceeds. Without public access to the trust terms or the 2025 agreement, the dispute’s outcome remains uncertain.

Family trusts are intended to safeguard assets across generations, but disputes like the Buss family’s highlight their limitations. When multiple heirs share ownership—especially of high-value assets like sports teams—their differing goals can lead to public conflicts. Similar cases include the Denver Broncos’ 2022 sale after sibling disagreements, a 2021 dispute among Los Angeles Chargers heirs over trust control, and a 2022 lawsuit involving the Baltimore Orioles’ ownership structure.

Research underscores how common such conflicts are. A forthcoming study of California trust lawsuits found that 25% of 640 cases involved sibling disputes, with the highest frequency occurring when some siblings served as trustees while others were only beneficiaries. Estate planning experts note that equal inheritance does not guarantee harmonious management of shared assets.

As the Buss family’s legal wrangling continues, the case serves as a cautionary tale about the challenges of preserving family control over prized assets like professional sports teams.

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