The Los Angeles Lakers are set to change controlling ownership hands, with the Buss family agreeing to sell their majority stake to Mark Walter, CEO of TWG Global. The deal, which values the iconic NBA franchise at an unprecedented $10 billion, marks the highest valuation ever for a professional sports team.

A person with knowledge of the agreement, speaking anonymously to The Associated Press on Wednesday, confirmed that Jeanie Buss, whose family has controlled the Lakers since her father purchased the team in 1979, intends to remain as team governor.

NBA rules mandate that a team governor must maintain at least a 15% ownership stake, and Buss is expected to retain at least that much once the transaction is complete.

The extent of Walter's additional acquisition beyond his current 27% stake, bought as part of a group in 2021, was not immediately clear. ESPN first reported the agreement.

Walter and TWG Global already hold significant interests in the sports world, including controlling stakes in the Los Angeles Dodgers, Premier League club Chelsea, the Professional Women’s Hockey League, and several auto racing teams through TWG Motorsports, notably Cadillac Formula 1.

Dodgers manager Dave Roberts hailed the news as "a very exciting day for the Lakers, for the city of Los Angeles." He added, "He’s very competitive and he’s going to do everything he can to produce a championship-caliber team every single year and make sure the city feels proud about the Lakers and the legacy that they’ve already built with the Buss family."

'Mark Walter is the best choice'

Lakers legend Magic Johnson, a business partner of Walter's and a close confidante of Jeanie Buss, enthusiastically endorsed the sale on social media.

"Mark Walter is the best choice and will be the best caretaker of the Laker brand," Johnson posted. "The proof is in the pudding on what he has been able to accomplish with the LA Dodgers. Mark has been nothing short of a winner notching 2 World Series and 11 NL West divisional titles in the last 12 years!"

Johnson expressed certainty that Jeanie Buss made the deal only after being convinced that Walter would uphold the Lakers' esteemed legacy. "Laker fans should be (ecstatic)," he wrote. "A few things I can tell you about Mark -- he is driven by winning, excellence, and doing everything the right way. AND he will put in the resources needed to win! I can understand why Jeanie sold the team to Mark Walter because they are just alike -- they are competitive people, have big hearts, love to give back, and both prefer to be behind the scenes. This makes all the sense in the world."

Walter is known for his intensely private nature, largely shunning the public spotlight. He serves as CEO of Guggenheim Partners, a financial services firm reportedly managing over $325 billion in assets, with Magic Johnson listed among its investors.

Shattering previous valuation records

This record-breaking valuation for the Lakers dwarfs recent milestones in professional sports franchise sales. Just three months prior, Bill Chisholm's agreement to buy the Boston Celtics was set to be a record at an initial valuation of $6.1 billion, surpassing the previous mark of $6.05 billion for the NFL's Washington Commanders.

The Celtics' sale awaits final approval from the NBA's board of governors, scheduled to meet next month in Las Vegas.

The Lakers have been under the continuous control of the Buss family for an impressive 46 years, making it the longest current ownership tenure for any NBA franchise. Herb Simon's ownership of the Indiana Pacers, which began in 1983, is the second-longest.

Dr Jerry Buss acquired the Lakers for $67.5 million in 1979, leading the club to 16 NBA Finals appearances and 10 championships during his 34 seasons at the helm.

Following his death in 2013, ownership of the Lakers transitioned to a trust controlled by his six children, all of whom held various roles within the organization for several years.

The family later experienced internal disputes over control, culminating in a 2017 agreement that designated Jeanie Buss as the controlling owner, resolving a contentious battle that included a court challenge from her brothers, Jim and Johnny Buss.