The battle for the Lakers complicates: Jeanie Buss tries to block the sale
Following reports that the Buss family will sell the remaining 17.8% of the club, Jeanie opposes the move, claiming it violates a court order. Her lawyers are demanding to halt the deal and keep her as the controlling owner.
The storm surrounding the change of ownership of the Los Angeles Lakers took a significant turn last night (between Monday and Tuesday). After it was reported yesterday that the Buss family decided to sell their remaining 17.8% in the club to Josh Kushner and Bob Iger, it was published in the US that Jeanie Buss strongly opposes the move and claims that her family members cannot execute the deal without her consent.
Buss's attorney, Adam Streisand, sent a letter to the lawyers representing her five siblings — Jim, Johnny, Janie, Joey, and Jesse — in which he claimed that the report that all six siblings voted in favor of the sale is incorrect. According to him, any such vote is "void ab initio," because it contradicts the terms of the family trust and a 2017 court order.
According to Streisand, that order requires the trustees to act to ensure that Jeanie Buss remains the controlling owner of the Lakers throughout her life. According to NBA rules, a club's controlling owner is required to hold at least 15% of it, and therefore the sale of the full 17.8% remaining in the family's hands will prevent Buss from meeting this requirement and continuing in her role.
"The court order is still in full force," it was written in the letter on behalf of Buss, "no change was ever made to the trust and no attempt was made to justify a change to it before the court." It was further written: "On behalf of Jeanie Buss, I demand that your clients clarify publicly that Jeanie Buss is the controlling owner of the Los Angeles Lakers and that no action will be taken following that alleged 'vote' to sell 17.8% of the shares."
According to her attorney, the sale of the trust's share cannot be carried out without the approval of the acting trustees — Jeanie, Janie, and Joey Buss. It is further claimed that an action that would lower the family's holdings below the threshold required for Jeanie to continue controlling the club could constitute a breach of trust, a breach of fiduciary duty, and even contempt of court. Buss has also turned to the Los Angeles court in an attempt to stop the move.
The development comes after it was reported yesterday that the Buss family had obtained the majority required to sell the remainder of its shares to Kushner and Iger. The family even stated in an announcement that it had decided to take the opportunity "to move on and exit with dignity," but now it turns out that Jeanie Buss is not a party to the decision.
The struggle comes just days after Kushner and Iger agreed on the purchase of the Lakers based on a valuation of $12.5 billion. If the sale of the Buss family's 17.8% is also completed, the two are expected to hold together about 83% of the club.
Now, what initially looked like the final departure of the Buss family from control of the Lakers after decades, may turn into a legal battle within the family — with Jeanie Buss making it clear that she does not intend to give up her status in the club easily.
