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Professional basketball

Record-Breaking Sports Deals and Unprecedented Governance Measures in the Business World

Strategic Insights

— 2 min read

Last week's $10 billion sale of a controlling stake in the LA Lakers basketball team set a new record value for a professional sports franchise. The deal tops the previous record of $6.1 billion for the Boston Celtics basketball team sold earlier this year. The LA Lakers' sale highlights the growing trend of institutional capital investing in sports teams, driven by the industry's shift from traditional family ownership.

Key Takeaways:

  • The $10 billion sale of the LA Lakers' controlling stake sets a new record value for a professional sports franchise, more than double the valuation of Manchester United when Sir Jim Ratcliffe bought his 27.5% stake in February last year.
  • The deal is part of a larger trend of institutional capital investing in sports teams, driven by the industry's shift from traditional family ownership to corporate ownership.
  • The new majority owner, Mark Walter, is typical of the new generation of sports investors, backed heavily by private equity and sovereign wealth funds.
  • 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 and his daughter Jeanie after his death in 2013.
  • The sale of the LA Lakers may not keep the record for long, as there is now a wall of institutional capital looking for sports teams to buy.
  • The Trump administration's approval of Nippon Steel's $14.9 billion takeover of US Steel came with a special share giving the US government a right of veto over a wide range of corporate decisions, along with a seat on the board.
  • This "golden share" is unprecedented and has raised concerns about the president's interference in corporate affairs.
  • The Climate Innovation Forum in London this week will bring together business leaders, investors, policymakers, and civil society representatives to discuss accelerating the shift from carbon to renewable energy and "making business activities nature-positive".
  • The forum is part of London Climate Action Week, an annual festival of eco multi-stakeholderism that has now overtaken the New York forum in importance for those seeking practical solutions to climate change.

Statistics:

  • The LA Lakers' $10 billion sale sets a new record value for a professional sports franchise.
  • The previous record of $6.1 billion for the Boston Celtics basketball team sold earlier this year was broken in the LA Lakers deal.
  • The LA Dodgers baseball team and 12% of Chelsea Football Club are also owned by TWG Global, the holding company of new LA Lakers majority owner Mark Walter.
  • The 2,000 business leaders, investors, policymakers, and civil society representatives expected to attend the Climate Innovation Forum in London this week is a significant increase from previous years.
  • The London Climate Action Week is expected to draw around 30,000 people, making it one of the largest eco multi-stakeholderism events in the world.

Sources:

  • "LA Lakers sold for record-breaking $10bn" (Financial Times)
  • "Trump demands veto power in US Steel takeover" (Financial Times)
  • "London Climate Action Week" (London Climate Action Week website)
  • "Climate Innovation Forum" (Climate Innovation Forum website)
  • "New York forum on climate change" (New York Times)
  • "Boston Celtics sold for $6.1 billion" (Boston Globe)

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