The Los Angeles Lakers have agreed to sell a controlling stake to Guggenheim Partners CEO Mark Walter, marking the latest high-profile move by private equity to reshape ownership in top-tier professional sports.

The deal, confirmed during the NBA Finals, positions the Lakers as the most valuable sports franchise globally, surpassing the $6.1bn valuation of the Boston Celtics’ sale last year to a Symphony Technology Group-led consortium. Financial terms of the Lakers transaction have not been disclosed.

Walter, who already owns the LA Dodgers and holds stakes in the LA Sparks, Cadillac’s Formula 1 team, and the Professional Women’s Hockey League, is expected to inject fresh capital into the Lakers as they adapt to a new collective bargaining agreement designed to favour younger, cost-efficient rosters.

The shift from family to institutional ownership marks a generational transition. The Buss family, which purchased the Lakers for $67.5m in 1979, has owned the team for 46 years. The sale underscores how rising valuations and complex financial constraints are pushing more franchises toward private equity capital.

The NBA’s new media rights deals – with Amazon, NBC, and ESPN – are set to provide an additional revenue boost, offsetting the collapse of local TV rights amid cord-cutting. For private equity-backed franchises like the Lakers and Celtics, the challenge now is balancing financial discipline with fan expectations for star-studded rosters.

Source: Forbes

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