The NBA — and Lakers fans — are still reeling from the shocking sale of the iconic franchise for the second time in 14 months this week. Nobody saw this coming, including the league office.
There’s been a lot of fallout from the news of the sale, here are some of the latest reports.
Why is Walter selling now?
That remains the $12.5 billion question, but the answer is coming more into focus:
Money. It’s always about the money.
There are a lot of ideas and White House-tied conspiracy theories floating around about what motivated Walter to sell the Lakers 14 months after agreeing to purchase them, but the answer may be the most obvious one. Walter is facing twin federal and SEC investigations into potential fraud tied to the valuation of insurance companies he owns through Guggenheim Partners and TWG Global, and in the wake of that, needed cash fast to pay down debts.
Then Joshua Kushner called, and his venture capital firm Thrive had the cash (they were looking into getting an NBA expansion team in Las Vegas, plus they were the primary buyers in the now-scuttled FIFA plan to sell rights to the World Cup and other events, so they were ready to spend). It came together quickly.
One other note: Walter Mark Walter could save roughly $425 million in taxes if the Board of Governors approve the sale and it goes through by November, according to tax calculations in an article at Sportico.
Would LeBron have stayed?
LeBron James left the Lakers this offseason in an amicable divorce, as the franchise reshaped itself around Luka Doncic’s playing style. Might LeBron have stayed in Los Angeles if the Lakers had different ownership? ESPN’s Dave McMenamin asked that of a source close to LeBron.
“Maybe. But that’s tough to answer. Communication could have been better [with Iger and Kushner, compared to with Walter]. Just a different relationship. But the basketball piece was the most important, so maybe not from that standpoint.”
From my perspective, I don’t think new owners would have changed anything. First, the vibe that LeBron wasn’t returning was evident around the team by midway through the season — the Lakers needed to pivot to a team built around Doncic, and everyone understood that. New ownership doesn’t change that.
Plus, LeBron landed in a very interesting place — with a better chance of getting another ring — in Philadelphia.
David Stern famously nixed Chris Paul being traded to the Lakers in 2011, but could the future Hall of Fame point guard have a role with the team’s front office under new ownership?
It’s been speculated about because CP3 and new owner Bob Iger are so close, reports ESPN’s McMenamin.
…multiple sources around the league suggested to ESPN that recently retired Chris Paul could have a role. Paul and Iger became close while the point guard played for the Clippers and Iger was a season-ticket holder.”
How do Lakers fans feel?
Like everyone else, Lakers fans are shocked. Part of what helped grow the Lakers into a global icon was stability — the Buss family owned and ran the team for 46 years.
Lakers fans understood the sale of the team to Walter. The era of mom-and-pop family ownership of major American sports franchises is over, it takes deeper pockets to compete. Walter had those, and had a track record of spending and success in Los Angeles with the Dodgers — and he was bringing the beefed-up scouting staff and analytics bent of the Dodgers to the Lakers.
Now? Lakers fans I have spoken to in the last 48 hours (I live in the greater Los Angeles area with a lot of Lakers fans as friends) are both shocked, and there is an air of trepidation. Walter was a known quantity, but the Kushner/Iger team has never been the primary owners of a major sports franchise. Nobody knows what their ownership style will be, what this will look like. What does this mean for Rob Pelinka as the head of basketball operations?
Magic Johnson tried to calm Lakers fans’ fears.
It’s going to take more than words — and Iger will be the one doing the talking. While Kushner is the money behind this and will be the controlling owner, Iger will be the face of ownership. It’s going to be about actions. The Lakers began a needed retooling this offseason to build a team around Doncic, but this is very likely not a championship team as constructed (not in the West with two juggernauts at the top). There is a lot of pressure on Walker Kessler and Austin Reaves to live up to massive new contracts. When things go wrong, as they inevitably will on some level, how will the new ownership handle the situation?
The new owners will have to win over Lakers fans. That may take time.
Read the full article here