A dispute has emerged within the Buss family over plans to sell its remaining 17.8% stake in the Los Angeles Lakers to the new majority ownership group led by former Disney chief executive Bob Iger.
Jeanie Buss intends to challenge the proposed sale, according to a letter from her attorney, Adam Streisand, to her five siblings that was obtained by CNBC and ESPN.
The development followed reports that the Buss family had agreed to sell its remaining shares after Iger and Joshua Kushner paid a record $12.5 billion for the Lakers last week from previous majority owner Mark Walter.
“We have decided as a family to sell the remaining Buss Family Trust shares to the Bob Iger group as part of the ongoing transaction,” a Buss family statement said.
“We love the Lakers, Laker fans and will continue to support Los Angeles; but it is time to use this opportunity to move on and exit gracefully while we still can.”
However, Streisand said Jeanie Buss had not agreed to the sale. He argued that any vote approving it “would be and is void” because her consent is required as one of the family trust’s three co-trustees, alongside Joey and Janie Buss.
“Co-trustees are bound to vote to ensure that the minimum 15% ownership requirement is maintained in order to ensure that Jeanie Buss may remain controlling owner,” the letter said.
It added that any attempt to assist with a sale that violated those obligations “would constitute a breach of trust, breach of fiduciary duty and be in contempt of court.”
Jeanie Buss has served as the Lakers’ NBA governor since 2013, following the death of her father, Jerry Buss. ESPN reported that she was the only family member who did not vote for the latest sale.
She previously had an agreement with Walter allowing her to remain team governor. Selling the remaining family interest, however, would leave her without the 15% stake required to continue in that role.
“On behalf of Jeanie Buss, I demand that your clients make clear publicly that Jeanie Buss is the controlling owner of the Los Angeles Lakers and that your clients shall take no action on this supposed ‘vote’ to sell the 17.8% stake,” Streisand wrote.
The Buss family sold its majority Lakers stake to Walter last year for $10 billion. If the latest transaction receives NBA approval, Iger and Kushner would control about 83% of the franchise.
NBA club owners are expected to consider the deal at next month’s board of governors meeting in New York.
