Bob Iger and Josh Kushner agreed to pay $12.5 billion for the Los Angeles Lakers, more than double what the Boston Celtics fetched last year. Now analysts are split on whether the record price reflects the franchise's true worth or a case of "deal heat" that inflated the number beyond reason.

The deal came together in three days after Iger learned embattled owner Mark Walter was willing to sell, the LA Business Journal reported. Walter, who faces a federal investigation into his financial empire, had owned the team only about 14 months after purchasing a controlling stake at a $10 billion valuation in June 2025. He still negotiated a 25% premium.

Michael Rapkoch, co-founder and CEO of Sports Value Consulting, which has advised more than 50 professional sports franchises, argued the price is justified by scarcity alone.

"How often do the Lakers come up for sale? Why wouldn't someone pay that amount if they were able? … This is likely your one and only chance. It's do it or lose it," Rapkoch told the Los Angeles Times.

Rapkoch also pointed to the NBA's stability compared to tech-sector bets, noting that Kushner invested more than $2.1 billion in OpenAI through his venture capital firm Thrive Capital. "We know with a high level of certainty the Lakers will be here" in 15 to 20 years, Rapkoch said.

On the other side, best-selling business author William D. Cohan warned that Iger and Kushner got caught up in wanting the franchise. Cohan said he suspects Iger fell into "deal heat," adding: "It's hard to get a return when you way overpay."

When Iger led Disney's 2019 bidding war with Comcast for 21st Century Fox, the price escalated from $54 billion to $72 billion, saddling Disney with $25 billion in debt and mixed returns.

The numbers behind the debate

The NBA's current media rights deals are worth $6.9 billion per year through 2036, covering ABC/ESPN, NBC/Peacock and Amazon Prime Video. The league generated $12.25 billion in total revenue during the 2024-25 season, an average of $408 million per team.

Shortly after Walter's purchase, Sportico valued the average NBA team at $5.51 billion, a 113% surge since 2022. The Golden State Warriors ranked first at $11.33 billion; the Memphis Grizzlies ranked last at $4 billion.

The Celtics sold for $6.1 billion in 2025, closely matching Forbes estimates. Steve Ballmer bought the Clippers for $2 billion in 2014 and acknowledged he willingly overpaid. Forbes now estimates the Clippers are worth $7.5 billion.

"I was all in, but then it got into the bid process," Ballmer said on a podcast in 2023, reflecting on that purchase. "People thought I way overpaid, but I got the team."

Buss family rift and what's ahead

The sale still requires approval from the NBA's Board of Governors, which meets Sept. 15 and 16 in New York. Kushner must also sell his minority stake in the Miami Heat before the deal can receive league approval.

The Buss family's 17.8% stake has become a flashpoint. Jeanie Buss, the team's governor since 2013, is contesting her siblings' vote to sell their shares to Iger and Kushner. Her attorney argues the sale cannot proceed without her approval as co-trustee, citing a 2017 court ruling, according to The Wrap. The siblings who favor selling cite a tag-along provision from Walter's June 2025 purchase.

Not everyone is selling. Patrick Soon-Shiong, the biotech billionaire who owns the Los Angeles Times, is holding his 4% stake, worth $500 million at the current valuation. His attorney Chuck Kenworthy told the Times on Aug. 20: "We believe they are still undervalued."

Jerry Buss bought the Lakers, the Forum and the Los Angeles Kings for $67.5 million in 1979. The Lakers alone now carry a $12.5 billion price tag, and the Board of Governors vote Sept. 15-16 will determine whether Iger and Kushner's bet officially goes through.