Iger and Kushner Buy LA Lakers for Record $12.5 Billion

Former Disney CEO Bob Iger and venture capitalist Joshua Kushner have agreed to purchase the Los Angeles Lakers for $12.5 billion, the highest price ever paid for a North American sports franchise. The deal, which requires NBA Board of Governors approval in September, involves Kushner's firm, Thrive Eternal, investing up to the league-allowed 20 percent limit, with the remainder provided by Iger and Kushner as individual investors. Iger plans to manage day-to-day operations, while Kushner will serve as governor if Jeanie Buss steps down.

The sale follows a rapid ownership shift, as the seller, Mark Walter, had purchased a majority stake from the Buss family for approximately $10 billion only a year prior. Walter is offloading the asset to raise capital for his investment firm, TWG Global, which is under investigation by the U.S. Department of Justice, the Securities and Exchange Commission, and Manhattan prosecutors. The probes center on potential insurance fraud and outsized related-party loans made by Walter's insurers to his own empire.

As part of this regulatory pressure, Delaware Life Insurance Co. restated its related party investments from $1.4 billion to at least $17 billion, representing 39% of its total invested assets. S&P Global Ratings noted that the company is implementing a remediation plan to improve financial controls. While TWG Global has approached firms like Point72 Asset Management for additional funding, Point72 declined. TWG Global maintains it is cooperating with authorities and that Walter has acted in good faith.