Why Jeanie Buss Ceded Her Role As Lakers’ Governor

EL SEGUNDO, CA - September 20: Jeanie Buss, CEO / Governor / Co-owner of the Los Angeles Lakers, holds a caller Lakers jersey arsenic the Lakers big a 2021-2022 play kick-off arena to unveil and denote a caller world trading business pinch Bibigo, which will look connected the Lakers jersey astatine the UCLA Health Training Center successful El Segundo connected Monday, Sept. 20, 2021. (Allen J. Schaben / Los Angeles Times via Getty Images)

Los Angeles Times via Getty Images

For 2 consecutive years, the Buss family agreed to thing that erstwhile seemed unthinkable.

Last year, the Buss family sold the mostly of its ownership liking to Mark Walter for a record-setting $10 billion. On Monday, the Buss family plans to waste its remaining ownership liking (17.8%) to caller mostly owners Josh Kushner and Bob Iger aft they precocious purchased Walter’s liking for $12.5 billion.

The reasons look to spell beyond wanting to rake successful a handsome profit. Buss’ father, Jerry, first purchased the Lakers, the Forum, the NHL’s Kings and various existent property for a mixed $67.5 cardinal successful 1979. With this latest deal, Jeanie, Jim, Janie, Johnny, Joey and Jesse individually will bring successful much than their father’s original acquisition price.

With Jeanie arsenic the lone Buss related still pinch an progressive domiciled arsenic the Lakers’ squad governor, this move solidifies her eventual exit by prime alternatively of by eventual unit from either her siblings, caller ownership aliases both.

"We person decided arsenic a family to waste the remaining Buss Family Trust shares to the Bob Iger group arsenic portion of the ongoing transaction," the Buss family said successful a connection to ESPN. "We emotion the Lakers, Laker fans and will proceed to support Los Angeles; but it is clip to usage this opportunity to move connected and exit gracefully while we still can."

Why Jeanie Buss felt compelled to waste her Lakers’ shares

The Buss’ family has hardly been graceful pursuing Jerry’s passing successful 2013. By then, he had established that Jeanie would go the team’s politician while Jim would beryllium successful complaint of hoops operations. Four years later, Jeanie fired Jim astatine her station amid her dissatisfaction pinch really he managed the team’s roster during its worst agelong successful history. She besides successfully averted a coup that Jim and Johnny pursued to region her arsenic the Lakers’ governor.

Shortly aft Walter’s mostly stock acquisition was finalized, the Lakers fired Joey and Jesse Buss amid their effort to reorganize the team’s hoops department. Joey and Jesse Buss were not successful favour of the squad trading its mostly ownership shares to Walter. But the move besides represented a pivot aft the Lakers weighted Joey and Jesse Buss for their roles pinch overseeing their G League squad (Joey) and the Lakers’ scouting section (Jesse).

Jeanie stayed put amid Walter’s plans to clasp her arsenic the team’s politician for astatine slightest the adjacent 5 years. The NBA besides affirmed that anticipation aft the league’s Board of Governors approved the sale. Even pinch Iger and Kushner agreeing to acquisition Walter’s shares past week, it initially appeared that Jeanie Buss would enactment pinch the organization. Iger confirmed to the California Post that he intended the grant the statement that Walter and Jeanie Buss made pinch her Governor domiciled staying intact for astatine slightest the adjacent 5 years. Iger stressed, “If things change, things change.” But astatine that point, Jeanie Buss still had the league’s requisite for controlling governors to ain astatine slightest 15% of the franchise.

After various firings and lawsuits involving her brothers, Jeanie’s brothers facilitated her ain exit. Jeanie Buss has fielded mixed reviews for really she has managed the statement since her father’s passing, including hiring and retaining Rob Pelinka arsenic the Lakers’ wide manager, her move pinch her siblings and for being deliberate pinch the organization’s spending connected support staff, coaches and domiciled players. But Jeanie is besides wide respected for her business acumen and amenable activity style wrong convention circles. She arguably could person go a valuable assets pinch helping Iger and Kushner during their ownership transition. Instead, the Jeanie ceded power preemptively by trading her shares alternatively of risking the anticipation that her tenure would extremity involuntarily.

Jeanie Buss initially thought family would ain the Lakers ‘forever.’

These developments surely people a stark departure from Jeanie’s position complete a decade ago. In a wide-ranging interview during the Lakers’ worst agelong successful franchise history (2014-15), Jeanie sat successful her agency and told maine she could ne'er ideate immoderate script successful which she and her siblings would consciousness compel to waste their stock of the Lakers retired of respect for her begetter overseeing 10 of the Lakers’ 17 NBA championships.

“He worked very difficult to beryllium successful a position truthful that our family could support this squad forever,” Jeanie Buss said. “We’re committed to doing that.”

Circumstances yet changed.

In 2021, AEG proprietor Philip Anschutz sold his 27% individual liking to Todd Boehly and Walter, a move that sparked speculation that Walter would want to presume mostly power eventually. With Guggenheim Group, Walter had some the committedness and wherewithal to walk much lavishly connected the Dodgers’ beforehand office, support unit and roster. With expanding valuations pinch the Dallas Mavericks ($3.5 cardinal successful 2025) and the Boston Celtics ($6.1 cardinal successful 2025), it became clear the Buss family should sell. Not only would they bask successful those earnings. With the Lakers’ franchise arsenic their domiciled gross watercourse among six siblings, the Buss family did not person the aforesaid financial intends to walk arsenic wealthier ownership groups.

More surprises awaited aft Walter sold the franchise little than a twelvemonth aft purchasing it. It’s adjacent to wonderment if immoderate of the reasoning had to do pinch Walter being nether national investigation for unpaid loans. Regardless, the caller waste besides put Jeanie successful a precarious position. Instead of holding retired dream that she would stay arsenic the Lakers’ politician astatine slightest successful the short-term, Jeanie accepted lavish payout and a much graceful exit.