Jeanie Buss’ lawyer wrote in a letter on Monday afternoon that the Los Angeles Lakers’ controlling governor opposes her sibling’s attempts to sell the family’s remaining 17.8% ownership stake to the Lakers’ new majority owners Bob Iger and Josh Kushner.
Buss’ lawyer also cited documents that a judge ruled in 2017 that Jeanie will remain the Lakers’ controlling owner for the rest of her life, and that the order has not changed.
“On behalf of Jeanie Buss, I demand that your clients make clear publicly that Jeanie Buss is the Controlling Owner of the Los Angeles Lakers and that your clients shall take no action on this supposed “vote” to sell the 17.8% stake,” Jeanie’s lawyer, Adam Streissand wrote in a letter to the Buss siblings’ attorneys, including Jason Kahout, Xochitl Cortez and Ryan J. Barncastle.
In that letter, Streissand disputed ESPN’s initial report that the Buss family decided to sell its minority ownership share partly because Jeanie has not approved of such measure. Such a resolution requires four of the six Buss siblings to vote in favor of it among Joey, Jesse, Jim, Johnny and Janie. Jeanie, Janie and Joey Buss are also considered the family’s current co-trustees. Should all or the majority of the Buss siblings vote yes to ensure a sale, Jeanie Buss would lose her position as the Lakers’ governor since the NBA requires the team’s respective governor to maintain at least a 15% ownership stake.
“No sale of the JAB Trust’s 17.8% ownership interest in the Los Angeles Lakers, Inc. can be effectuated without approval by the current co-trustees, i.e., Jeanie, Janie and Joey Buss,” Streissand wrote in the letter. Pursuant to the JAB Trust and the attached Court Order, the co-trustees are bound to vote the Los Angeles Lakers, Inc. shares to ensure that the minimum 15% ownership requirement is maintained in order to ensure that Jeanie Buss may remain Controlling Owner. Any attempt by the co-trustees to do otherwise, and any attempt to aid or abet the co-trustees as such, would constitute a breach of trust, breach of fiduciary duty and be in contempt of court. On behalf of Jeanie Buss, I demand that your clients make clear publicly that Jeanie Buss is the Controlling Owner of the Los Angeles Lakers and that your clients shall take no action on this supposed ‘vote’ to sell the 17.8% stake.”
Jeanie fired Jim in 2017 as the Lakers’ head of basketball operations. Jeanie also let go of Joey (G League) and Jesse (scouting) as part of the organization’s front office shakeup shortly after the Buss family sold its majority shares to Mark Walter. The Buss family’s latest effort could then result in Jeanie Buss’ termination. Regardless, Jeanie Buss intends to litigate to ensure the Buss family maintains its ownership shares.
“In any event, any “vote” by any of the Buss siblings would be and is void ab initio,” Streissand wrote in the letter. “Not only would such a “vote” conflict with the clear and express requirement that the trustees of the Jo Ann C. Buss 2006 Children’s Electing Small Business Trust, dated September 1, 2006 (the “JAB Trust”), vote the shares of the Los Angeles Lakers, Inc. to ensure that Jeanie Buss remains controlling owner, but as I am certain you are aware, in April 2017, I obtained from the Los Angeles Superior Court, the attached Order on Petition for Instructions to Co-Trustees Concerning Appointment of Controlling Owner of the Los Angeles Lakers, Inc. The Court ordered, among other things, as follows: “The Co-trustees of the Trust are hereby instructed to take all actions reasonabl[y] available to them, including voting the Trust’s shares, to ensure that [Jeanie Buss] is elected as the Controlling Owner of the Lakers on an annual basis during [Jeanie Buss’s] lifetime absent a further order of this Court modifying the Trust based upon proof of circumstances justifying the modification under applicable law.”
CNBC, The Athletic and ESPN also reported on the contents of Streissand’s letter.