Iger, Kushner Buy Lakers Amid Walter Federal Probe

Bob Iger and Joshua Kushner have agreed to buy a controlling interest in the Los Angeles Lakers for $12.5 billion — the highest price ever paid for a sports team — from Mark Walter, whose financial empire is the subject of a federal investigation.

Walter bought control of the franchise roughly 14 months ago. The Los Angeles Times reports the flip nets him a $2.5-billion profit.

The deal still needs approval from the NBA Board of Governors.

Who Is Buying

Iger ran the Walt Disney Co. as chief executive twice, most recently from late 2022 until earlier this year. He joined Kushner's Thrive Capital briefly in 2022 and returned to the firm in March.

Kushner founded Thrive Capital in 2009. Forbes estimates his net worth at more than $5 billion. His older brother, Jared Kushner, is President Trump's son-in-law.

Thrive's sports arm, Thrive Eternal, previously bought and sold a stake in the NBA's Memphis Grizzlies and holds stakes in the Miami Heat and MLB's San Francisco Giants, according to the Los Angeles Times.

The pair had been pushing for an NBA expansion team in Las Vegas until the chance to pay cash for the Lakers appeared instead.

The Probe Behind the Sale

The Los Angeles Times, the Wall Street Journal and Sportico all report that Walter is facing a federal criminal probe and a parallel SEC investigation into his insurance holdings.

According to the Los Angeles Times, prosecutors and securities regulators are examining roughly $16 billion in undisclosed loans from two Delaware life insurers Walter owns to his own companies, after one of those insurers revised its stated related-party exposure from about $1 billion to $16 billion.

Sports Business Journal reported on Aug. 13 that insurers in Walter's portfolio have been racing to divest private-credit loans tied to other parts of his empire.

The Los Angeles Times says the lightning-quick Lakers sale comes as Walter's business faces that scrutiny, prompting a rush for cash. None of the published reports describe charges filed against Walter, and he retains ownership of the Dodgers.