NBA news, Los Angeles Lakers sold to Joshua Kushner and Bob Iger, Donald Trump White House denies meddling in federal investigation

Donald Trump’s White House has denied meddling in the sale of NBA powerhouse Los Angeles Lakers after it was snapped up by his son in law’s brother in a record $17.7 billion bombshell.

Venture capitalist Joshua Kushner and former Disney CEO Bob Iger are set to purchase the Lakers.

Advertisement

The price tag will break the record for the highest price ever paid for a sporting franchise in America, and they are buying it off Mark Walter who bought a majority stake in the team barely a year ago.

Walter is under federal investigation over alleged financial improprieties related to the insurance companies he controls.

When news of the Kushner involvement broke, speculation ran rampant that Trump’s administration had launched the Walter investigation in order to pressure him to sell the Lakers.

Kushner is the brother of Jared Kushner, who is Trump’s son in law.

The White House was forced to deny the allegations on Thursday.

“This has nothing to do with President Trump or his administration,” a statement to Front Office Sports said.

A statement from Thrive Capital also called the speculation “false”.

Advertisement

The deal comes just weeks after Kushner emerged as a central figure in a controversial private equity plan involving global football governing body FIFA.

FIFA said in July it planned to create a new commercial subsidiary, valued at about $28 billion, to hold the organisation’s World Cup and other event-related businesses and sell minority stakes to outside investors.

Kushner’s private equity firm Thrive Eternal was expected to lead a group of investors. The proposed transaction could have raised more than $5.6 billion for FIFA, with the proceeds intended in part to fund soccer development programs around the world.

The proposal sparked an immediate backlash from European football officials and others who objected to private investors taking an ownership stake in the commercial operations of the world’s most popular sport and threatened to become a test of FIFA president Gianni Infantino’s leadership.

Advertisement

Advertisement

FIFA later backed away from the plan after the criticism, though it said it would continue consulting on the proposed structure.

Billionaire Walter purchased a majority stake in the NBA team last year in a deal that valued the club at $14 billion, with the deal only having been approved by the board of governors in October.

Walter’s financial empire faces a federal probe, according to reports last month, examining links between investments held by his insurers and affiliates. Walter is also the owner of Major League Baseball’s Los Angeles Dodgers.

Advertisement

“As lifelong NBA fans, we are deeply honoured for the opportunity to become stewards of the Los Angeles Lakers, one of the most iconic sports franchises in the world,” Iger and Kushner said in a statement.

“We have immense respect for the leadership and vision of Jerry and Jeanie Buss. Our long-term commitment is to build on that foundation, compete at the highest level, and serve this extraordinary team, its fans, and the city of Los Angeles.”

The two businessmen had previously been tied to a potential expansion NBA team in Las Vegas but seemingly ended that campaign with Thursday’s news, which stunned fans and industry experts.

The deal requires sign-off from the board of governors. It is also pending due diligence by Kushner’s Thrive Eternal, a new investment strategy launched by his venture capital firm Thrive Capital, a source said.

Click here to read article