Buss Family Trust Cited As Potential Reason For Sale Of Lakers: 'It's Last Man Standing'

The Los Angeles Lakers saw the majority stake of the Buss family sold by Jeanie Buss at a whopping $10 billion valuation. With the CEO of TWG Global, Mark Walter, taking over, the Lakers see the end of an era under the ownership of the Buss family.

The positive elements of the deal were presented rather enthusiastically by Lakers legend Magic Johnson, who promised exciting things in store for fans of the Purple and Gold. But the suddenness of the deal has also drawn some attention towards another factor that has been cited as the potential reason for the sale going through.

Dr. Jerry Buss purchased the Lakers from Jack Kent Cooke in 1979 for $67.5 million, gaining ownership of The Forum and the NHL's Los Angeles Kings in the process. Under the ownership of the Buss family, the Purple and Gold thrived, growing into a global giant in the sporting world.

With the subsequent rise in value, Dr. Buss ensured that his stake would be equally divided among his children, so all of them would be taken care of. This gave rise to the Buss Family Trust, which was initially presided over by three trustees - Johnny, Jim, and Jeanie. 

While this is a positive method of ensuring the assets stay within the family, the covenants of the trust made for a rather complicated situation among the Buss siblings.

As constructed, the assets of the trust were to be equally consolidated among the six siblings. If one were to pass, the value would then be divided among those remaining. In an article released by ESPN, one of the Buss siblings, Janie, addressed the complications that arise with the trust. She said:

"It's last man standing. If I die tomorrow, my kids benefit a little bit, but they don't get everything I'm entitled to. As we all go down, it's all going to end up in Joey's and Jesse's hands because they're the youngest."

Janie expressed that each of the siblings had their motivations with regard to the trust. The oldest, Johnny, was said to have an interest in the trust only to ensure the security of his children. Meanwhile, Jim was assumed to be motivated purely by a quick source of money.

Dr. Buss provided his children with an opportunity to prove their mettle, with each of them running a part of his empire. While the trust saw several changes and iterations, it was mentioned that after Dr. Buss' passing, Jeanie would take over as owner of the Lakers.

The court proceedings filed by Jeanie Buss in 2017 against her brothers regarding this matter saw a massive shift in power, as Jim was replaced by Janie as a trustee. This effectively gave Jeanie controlling interest, allowing her to remain on the board.

The trust has always operated with the intention that it would take four of the six siblings to vote in favor of dissolving it. With the majority stake being sold to Walter, it is evident that most of the siblings were in favor of this deal.

It is also important to note that Jeanie will be staying on as governor for the Lakers and overseeing operations for the foreseeable future. Although the Buss family isn't directly involved with the ownership of the Purple and Gold anymore, they will remain a part of the organization.