Now Reading: Lakers sale sets record with $12.5bn valuation
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Lakers sale sets record with $12.5bn valuation
Joshua Kushner, founder of Thrive Capital, will become the controlling shareholder of the Los Angeles Lakers in a deal valued at $12.5bn, announced on August 12, according to Hindustan Times. Bob Iger,…
The Story in Brief
Joshua Kushner, founder of Thrive Capital, will become the controlling shareholder of the Los Angeles Lakers in a deal valued at $12.5bn, announced on August 12, according to Hindustan Times. Bob Iger, the former Walt Disney chief executive, will join the ownership group. The price is the highest ever paid for an American sports team and is $2.5bn above Mark Walter’s reported purchase price about a year ago.
The deal reflects strong investor interest in sports franchises, but also brings concerns about inflated valuations. The Lakers have exceptional local broadcasting revenue and global recognition. The NBA has secured an $76bn, 11-year media-rights agreement, while plans for a 16-team European league could expand its reach. Hindustan Times also cites reports that Walter’s firm is seeking cash amid federal scrutiny of loans linked to his insurance companies.
The Indian Opinion
The lazy reading is that every sports sale proves a bubble, while the opposite claim treats any famous team as a guaranteed bargain. The Lakers do have unusual media income, a global fanbase and long-term NBA broadcasting contracts. Yet paying more than twice the value attributed to the Boston Celtics last year demands exceptional future growth. The clearest test will be whether Lakers revenues and media rights can justify the $12.5bn price without relying on another quick sale.
Source: hindustantimes.com
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