Slam dunk for LA Lakers in record $10bn sale

Last week’s $10bn sale of a controlling stake in the LA Lakers basketball team has set a new record value for a professional sports franchise. That is more than double the valuation of Manchester United when Sir Jim Ratcliffe bought his 27.5% stake, including some operating control rights, in February last year. The LA Lakers deal tops the previous record of $6.1bn for the Boston Celtics basketball team when it was sold earlier this year.

The LA Lakers may not keep the record for long. There is now a wall of institutional capital looking for sports teams to buy, as the industry shifts from traditional family ownership. The LA Lakers have been controlled for nearly half a century by the Buss family who presided over a remarkable period of success under Jerry, who bought it in 1979, then after his death in 2013, under his daughter Jeanie.

The new majority owner is Mark Walter, boss of the holding company TWG Global, which also owns the LA Dodgers baseball team and 12% of Chelsea Football Club. He is typical of the new generation of sports investor, backed heavily by private equity and sovereign wealth funds.

These big financial institutions are tempted by the money-making potential of live events, with screening rights sold at a premium to TV and streaming companies. They also like the “sports washing” they can give to businesses that make much of their money from squeezing costs out of less-glamorous activities, and the chance to hang out with sports stars.

If the Steinbrenner family could be persuaded to let go of the New York Yankees (admittedly not very likely) that could dwarf the LA Lakers stake. Meanwhile, expect plenty of speculation over which team will be next to claim the sports mega deal crown.

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