Why Josh Kushner and Bob Iger are paying a record $12.5B for the Lakers

Josh Kushner and former Disney chief Bob Iger have agreed to buy a controlling interest in the Los Angeles Lakers in a deal valuing the franchise at about $12.5 billion, setting a record for a control sale of a professional sports team.

The price is striking because Mark Walter’s group acquired control of the Lakers at a $10 billion valuation only about 14 months earlier.

Kushner and Iger are effectively accepting a 25% valuation increase in little more than a year, subject to NBA approval.

The logic rests on something ordinary companies cannot easily replicate: extreme scarcity, long-term league revenue and a brand with global reach.

Why the Lakers command a scarcity premium

The NBA has only 30 franchises, and iconic teams rarely come onto the market.

Kushner and Iger had previously explored joining a potential Las Vegas expansion bid, but buying the Lakers gives them immediate control of one of basketball’s best-known assets.

Tripp Crews and Tim Lee of Mercer Capital told Front Office Sports after the Lakers’ previous sale that truly “premium” professional sports brands capable of commanding such valuations are rare.

They cautioned against using the Lakers as a direct benchmark for every NBA franchise.

Jesse Silvertown, principal at The Ledge Company, similarly told Front Office Sports that the earlier $10 billion valuation was “completely reasonable given the math and environment.”

The new price suggests buyers believe that premium has become even more valuable.

A $77 billion media deal makes the maths easier

Scarcity alone does not explain $12.5 billion. The NBA has also locked in unusually visible future revenue.

Its new 11-year national media agreements with Disney, NBCUniversal and Amazon began with the 2025-26 season and run through 2035-36. The package has been widely valued at roughly $77 billion.

Dave Dase, global co-head of sports at Goldman Sachs, told Front Office Sports that sophisticated league governance, clear ownership rules and shared revenues have been a “principal driver” of rising North American sports valuations.

Investors know what they are buying because the league offers a clearly defined business model, Dase said.

The Lakers add advantages few teams can match: Los Angeles, an international fan base and a championship history spanning generations.

Iger also brings unusual perspective. He spent years running Disney while ESPN and ABC remained central buyers of NBA rights, giving him deep experience with the economics of premium live sports.

The record price still assumes more upside

There is still a speculative element to the deal.

A jump from $10 billion to $12.5 billion in roughly 14 months means Kushner and Iger are paying not only for current cash flows but for future appreciation.

The deal came together within days and without a broad auction, surprising members of the NBA ownership community. Iger told the California Post that he and Kushner moved quickly after learning Walter might sell.

The benchmark also remains unusually Lakers-specific. Mercer Capital’s warning is important: very few teams combine scarcity, market size and global brand strength at this level.