From Showtime to Insurance Time: How the LA Lakers Became a $12.5 Billion Hedge Fund Play

Bob Iger and Josh Kushner's $12.5 billion bid to buy the Lakers shows that NBA teams are no longer family dynasties but quick flips for private equity sharks.

From Showtime to Insurance Time: How the LA Lakers Became a $12.5 Billion Hedge Fund Play

TL;DR

  • The Los Angeles Lakers are on the verge of being sold for an estimated $12.5 billion to Bob Iger and Josh Kushner.
  • This sale signifies a transition from long-term, family ownership to short-term private equity investment in sports franchises.
  • The NBA opened up to institutional money in 2022, making sports an attractive asset class.
  • Previous owner Mark Walter's quick disposal of his majority stake after just 14 months exemplifies the new 'flip' mentality.
  • Private equity firms are attracted to sports teams for their potential for high returns, viewing them as hedges against market volatility.
  • The trend sees 'families out' and 'sharks in,' with a focus on investor enrichment over tradition or community.

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