Jeanie Buss contests proposed sale of family’s Lakers stake

Jeanie Buss is contesting a proposed sale of the Buss family’s remaining Los Angeles Lakers stake to Bob Iger and Joshua Kushner, saying the deal cannot proceed without her approval. The Jeanie Buss Lakers stake sale dispute could determine whether she keeps the ownership interest needed to remain the team’s governor.

In a letter obtained by CNBC, Buss’s lawyer, Adam Streisand, said Buss had not consented to a sale and argued that any vote purporting to authorize one was invalid. Streisand wrote that the JAB Trust’s reported 17.8% interest in the Lakers requires the approval of its current co-trustees: Jeanie, Janie and Joey Buss.

Can Jeanie Buss block the Lakers stake sale?

That is unresolved. Buss’s position is a legal argument based on the family trust and a 2017 court order, not a court ruling that has stopped a transaction. Front Office Sports reported that it remained unclear whether she is legally correct that the family cannot choose to sell the stake.

According to the letter reported by CNBC, the co-trustees must vote the trust’s Lakers shares to retain at least a 15% ownership interest so Buss can remain controlling owner. Streisand said an effort to act otherwise could amount to a breach of trust, breach of fiduciary duty and contempt of court.

The other five Buss siblings — Jim, Johnny, Janie, Joey and Jesse — gave a different account. They said they had decided to sell the family’s remaining stake and remained united behind that decision, CNBC reported.

ESPN, citing sources, reported that at least five of the six siblings voted to exercise tag-along rights and believed four votes were enough to authorize the sale. Tag-along rights allow minority investors to sell their interest when a controlling owner sells; the validity of their use in this case is part of the dispute.

What stake is being disputed?

The family trust’s reported 17.8% stake is separate from the proposed sale of Mark Walter’s majority interest in the Lakers. CNBC reported that Iger and Kushner agreed the previous week to acquire Walter’s stake at a $12.5 billion team valuation.

If the Buss trust’s stake were sold, ESPN reported that Buss would not retain the ownership percentage required for the governor role. ESPN said NBA guidelines require a team governor or controlling owner to hold at least 15% of the franchise, and that Buss has served as Lakers governor since 2013.

Two unnamed sources told Front Office Sports that the family conflict did not affect the proposed Iger-Kushner deal involving Walter’s stake. That report also said the timing of the broader transaction was unclear. The available reporting does not establish a final court outcome, a completed sale of the Buss family stake or a timetable for resolving the trust dispute.

This story draws on original reporting from CNBC.