Joshua Kushner and Bob Iger buy LA Lakers for $12.5B, tax experts call it a 'powerful tax shield' for carried interest

Published Aug 16, 07:25 PM UTC

Billionaire investor Joshua Kushner and former Disney CEO Bob Iger have agreed to buy the Los Angeles Lakers for a record $12.5 billion. While the deal gives them an iconic NBA franchise with 17 championships, tax experts highlight significant tax benefits. Ram Ahluwalia of Lumida Wealth Management called the acquisition a 'powerful tax shield' to offset carried interest income from Kushner's investments in SpaceX, OpenAI, and Stripe. Sports teams allow owners to depreciate assets like player contracts and stadium infrastructure, generating paper losses that reduce taxable income, even as the team appreciates in value. The deal follows other high-profile team sales, including the Seattle Seahawks for $9.6 billion and the Boston Celtics for $6.1 billion. Broadcast rights and in-person experience spending have made franchise values compound faster than most asset classes.