Show Me The Money

Jerry Buss spent $67.5 million in 1979 to purchase the Los Angeles Lakers. The transaction also included the Los Angeles Kings NHL team and the Forum, the building the teams played in at the time.

The Buss family has had majority ownership of the Lakers franchise since that time

Jerry Buss passed away in 2013 but ownership went into a trust controlled by his six children.

Daughter Jeanie Buss eventually was named by the family to be the controlling owner and the face of the franchise consistent with the wishes of the late Buss.

Jeanie Buss
Source: https://www.si.com/onsi/athlete-lifestyle/relationships/lakers-owner-jeanie-buss-has-crazy-sleeping-arrangement-husband-jay-mohr

Last week it was announced that the Buss family had sold a controlling ownership in the Lakers to Mark Walter (who also owns the LA Dodgers) that values that Los Angeles Lakers at $10 billion.

Source: https://sports.yahoo.com/nba/article/how-the-los-angeles-lakers-10-billion-sale-compares-to-the-price-tags-of-other-north-american-sports-franchises-215447325.html

It is the highest price ever paid for a professional sports franchise.

The previous record was set when the Boston Celtics changed hands earlier this year at a valuation of $6.1 billion which narrowly eclipsed the sale of the Washington Commanders at $6.05 billion in 2023.

Source: https://x.com/YahooSports/status/1935451597116428333

I have to believe that if NBA franchises are going for the prices that the Lakers and Celtics did you can only imagine what an NFL franchise would bring ttoday?

A big reason for the continuing inflation in the prices of sports franchise is the limited supply.

Steve Ballmer, former CEO of Microsoft who owns the Los Angeles Clippers, recently commented on the business and investment case for being involved in sports assets.

“Unlike Microsoft, [the LA Clippers] cannot go to zero. The asset value...is far more secure than Microsoft. Why? They're not making more of them. As long as anybody in the world is [interested in sports], the value will hold.” 

Consider this chart that is from 2024 that shows the last time that every NFL franchise changed ownership, the price at that time and the estimated 2024 valuation (which likely is vastly understated based on the recent Lakers/Celtics sales).

Only 11 out of 32 NFL franchises have changed ownership in the last 25 years.

The Chicago Bears and New York Giants have not changed hands in 100 years.

The purchase price for those two franchises---$100 and $500, respectively

Source: https://x.com/WOLF_Sportz/status/1861863319587504484

Jerry Buss made a very smart investment in 1979 that has served his family well.

However, could he have done even better?

Many would be surprised to learn that $67.5 million invested in the stock of the S&P 500 in 1979 would now be worth almost $13 billion---30% more than the value of the Lakers.

Source: https://www.officialdata.org/us/stocks/s-p-500/1979?amount=67500000&endYear=2025

It just goes to show you that the stock market has been a pretty favorable place to invest for the last 46 years even if you did not have $67.5 million to start with.

However, it should be noted that the Buss family did sell the Kings NHL franchise for a reported $30 million in 1988 and The Forum for $22 million in 1999.

Another reason that the money in these examples grows like it does is the power of compounding.

46 years of compounding growth of anything starts to be a very, very big number.

The Buss family has done very well for itself due to the decision that Jerry Buss made to buy into professional sports almost a half century ago.

Someone else has done well for themselves by marrying into the Buss family.

In 2023, Jeanie Buss married actor/comedian Jay Mohr (most famous for his role as the rival sports agent Bob Sugar) in the movie Jerry McGuire.

Jay Mohr as sports agents Bob Sugar in Jerry McGuire

Jay Mohr with wife Jeanie Buss at LA Lakers game
Source: https://www.si.com/onsi/athlete-lifestyle/relationships/lakers-owner-jeanie-buss-has-crazy-sleeping-arrangement-husband-jay-mohr

The most famous line from the movie Jerry McGuire was "Show me the money".

The Buss family has been shown the money.

There have to be a lot of sports franchise owners that are also seeing dollars signs as well looking at these recent transactions.

Jay Mohr is apparently also getting a glimpse of it all along the way.

It just proves something my father used to tell me.

"It can take a lifetime to make a million dollars but you can marry it in a minute."

Of course, I did not listen.

However, considering I have 50 years and counting with the same woman, I must have done a few things right.

After all, money is not everything.