The Los Angeles Lakers were purchased by billionaire Mark Walter for a record $10 billion: here’s how much the famous NBA franchise is worth and why they were sold.
How much are the Los Angeles Lakers worth? This is the question swirling not only in the United States, but also across Europe, following the incredible transaction that led to a change in ownership of the famous NBA franchise.
As is well known, billionaire Mark Walter has come to own a 75% stake in the Los Angeles Lakers by paying a whopping $10 billion to Jeanie Buss, the former owner who remained with the company, retaining a 15% stake.
A record-breaking sum that is unparalleled in the lucrative world of American sports, but this sale ultimately responds to the increasingly competitive nature of the NBA and soccer.
Jerry Buss bought the Lakers way back in 1979, and after his death in 2013, his daughter Jeanie took over the management of the Los Angeles team, becoming the first female owner to win a championship in 2020.
So why did Jeanie Buss sell the Los Angeles Lakers? Is the $10 billion valuation correct? Let’s try to answer these questions that are plaguing basketball fans and beyond.
Why were the Los Angeles Lakers sold?
First, let’s try to understand the reason why the Los Angeles Lakers were sold. The answer in this case is very simple: money, an incredible amount of money equivalent to a third of the size of our latest budget bill.
Jerry Buss bought the Lakers in 1979 for just $67.5 million; In recent years, his daughter Jeanie has repeatedly stated that there is no reason why her family should sell the famous NBA franchise.
In 2021, however, Mark Walter—already the owner of the Los Angeles Dodgers (MLB) and also a shareholder in Chelsea—joined the Los Angeles Lakers board with a 27% stake and a first refusal option.
When the sale opened, Walter was able to exercise his right to purchase the majority by paying the Buss family a record $10 billion.
Jeanie Buss was reportedly convinced by the incredible capital gain compared to what she spent 45 years ago to purchase the Lakers, a choice dictated by the fact that the team will now be able to remain competitive thanks to a new owner with undisputed great economic potential.
In short, a choice of the wallet and also of the heart, in the belief that with a strong ownership like Mark Walter’s, the Los Angeles Lakers can remain competitive for a long time to come.
How much are the Los Angeles Lakers worth?
The offer of $10 billion was too high for Jeanie Buss to refuse, but the question now is: is this a fair valuation or were the Lakers overpaid?
We need to start with one assumption: the Los Angeles Lakers are among the three top brands in the NBA along with the Warriors and Celtics, boast champions like LeBron James and Luka Dončić, and generate revenues exceeding $500 million a year through sponsorship, TV, and merchandising.
In 2018, the Lakers were valued at $3.3 billion, but recently, an NBA franchise like the Phoenix Suns was sold for $4 billion and a 25% stake in the Milwaukee Bucks for $3.5 billion.
In conclusion, the $10 billion offer is the highest ever, but it appears commensurate with the Lakers’ strategic and global value and reflects a market where elite sports assets are viewed as long-term assets with growing potential.
Original article published on Money.it Italy. Original title: Quanto valgono i Los Angeles Lakers e perché sono stati venduti a 10 miliardi
