The Los Angeles Lakers‘ minority owner, Patrick Soon-Shiong, has no intention of selling his 4% stake in the franchise despite the recent ownership change in the organization.
Shiong’s family attorney, Chuck “Tiger” Kenworthy, confirmed to ESPN’s Dave McMenamin that the billionaire plans to remain part of the Lakers’ ownership group after Mark Walter agreed to sell his controlling stake to Bob Iger and Josh Kushner.
Klenworth added that Shiong is extremely excited about the Lakers’ future and looks forward to more championship seasons.
“Dr. Patrick is absolutely not selling his minority share of the Lakers. Bob Iger and Josh Kushner are good friends, and we will be joining them as supportive, active and engaged partners once they close the transaction with Mr. Walter.”
Shiong purchased a 4% stake in the Los Angeles Lakers from Magic Johnson in 2021. The 74-year-old doctor has remained a minority owner ever since then, and his investment has definitely appreciated massively.
Walter’s agreement to sell his controlling stake to Iger and Kushner reportedly values the Lakers at $12.5 billion, and at that valuation, Shiong’s 4% stake would be worth around $500 million.
But there is little temptation to capitalize. Kenworthy separately told the Los Angeles Times that Shiong’s family believes the Lakers are still massively undervalued, suggesting they see even greater long-term potential in keeping their ownership stake.
This becomes particularly interesting because of the ongoing legal battle between Jeanie Buss and her siblings.
The six Buss siblings collectively own 17.8% of the Lakers, but five of them have announced their intentions to sell their shares to Iger and Kushner. Jeanie is reportedly contesting the transaction, with her attorney saying that the family trust and a 2017 court order require the trustees to preserve her position as controlling owner.
NBA guidelines require a controlling owner to have at least a 15% stake in the franchise. If the respective Buss siblings sell their Lakers shares and Jeanie is left with around 3%, she would need to acquire roughly another 12% to satisfy the requirement.
The Athletic previously reported that Jeanie would be open to exploring the possibility of acquiring enough shares to remain the governor.
Shiong’s position seemingly eliminates one source of available equity, with his 4% already off the market. ESPN noted that another existing minority owner, Jeanie, could approach Ed Roski Jr., who owns 3%.
Even after getting Roski’s stake, that would leave her well short of 15%, meaning any path forward would require cooperation from Iger and Kushner or the remaining members of her family.
Shiong seems perfectly comfortable with the direction of the incoming ownership. While several major Lakers shareholders are selling or fighting over control, he plans to do the opposite: keep his 4% and remain an active partner in what he thinks can be an even more valuable franchise.
