A group led by Josh Kushner and Bob Iger has agreed to purchase the Los Angeles Lakers for a reported $12.5 billion, marking the largest amount paid for a team. The transaction follows a rapid succession of ownership changes for the franchise over the past year.
The Los Angeles Lakers are changing hands for the second time in just over a year. Josh Kushner, the younger brother of Jared Kushner, and Bob Iger, the former CEO of the Walt Disney Company, lead the buyer group that secured the NBA franchise at a $12.5 billion valuation, according to Yahoo reporting.
From Buss Family Dynasty to Mark Walter’s Short Tenureship
For nearly half a century, the Lakers remained under the control of the Buss family. Dr. Jerry Buss originally purchased the team in 1979 from Jack Kent Cooke for $67.5 million in a deal that also involved the Los Angeles Kings and the Los Angeles Forum. Before his death in 2013, Buss oversaw an era where the franchise captured 10 NBA championships. His children assumed control after his passing.
That 46-year run concluded in June 2025 when the Buss family agreed to sell majority control to a group led by Mark Walter, with the transaction finalizing in October 2025. According to the Los Angeles Business Journal, Walter’s group acquired a 71% stake in the team at a $10 billion valuation. Yet that ownership group is exiting less than a year later, agreeing to sell to the Kushner and Iger-led group at the new $12.5 billion valuation, as reported by The Wall Street Journal.
Capital Gains, Holding Periods, and the California Tax Bill
While the transaction generates a windfall of approximately $3 billion in appreciation across the ownership group’s two tranches, it triggers a massive tax liability for the departing investors. Yahoo reports that Walter’s 71% stake was accumulated through two separate purchases.
The first tranche—a 27% stake bought in 2021 at a $5.5 billion valuation with an approximate $1.5 billion cost—brings in $3.375 billion at the current $12.5 billion valuation. Because this portion was held for longer than a year, it qualifies for long-term capital gain treatment. That subjects the approximately $1.89 billion gain to a 20% federal tax, a 3.8% federal net investment income tax, and a 13.3% California state income tax. Combined, the blended rate reaches 37.1%, leaving Walter and his partners owing approximately $701 million on this tranche.
The Timing Trap on the October 2025 Tranche
The second tranche introduces substantial financial volatility depending on the exact closing date. This 44% stake was acquired in October 2025 using a $10 billion valuation, giving it a cost basis of $4.4 billion. Selling it at the $12.5 billion valuation yields $5.5 billion, creating a $1.1 billion gain.
If the sale finalizes after the one-year mark, this portion receives the same favorable long-term treatment, incurring a 37.1% blended tax rate and generating roughly $408 million in taxes. However, if the deal closes before that one-year threshold, the federal government applies an ordinary income tax rate of 37%. That pushes the blended rate to 54.1% and drives the tax owed on this tranche to approximately $595 million—a $187 million swing.
After-Tax Realities of Record-Breaking Sports Valuations
Total tax obligations for Walter and his partners depend heavily on how the transaction is structured and allocated among their numerous partners. Depending on those variables, their total tax bill sits between $1.1 billion on the low end and nearly $1.3 billion if the sale closes too early.
When factoring in these federal and state obligations against their $3 billion in total paper profits across both transactions, the group’s net after-tax return drops to approximately $1.7 billion. While consistently rising franchise valuations continue to drive staggering sale prices across professional sports, the immediate tax reality significantly alters the final financial outcome for departing owners.
