Sports economist reacts to Los Angeles Lakers $12.5 billion sale
NEW YORK (CBS, KYMA) - The Los Angeles Lakers made big news last year when the premiere NBA franchise was sold. Now it's happening again.
The new owner is flipping the team to investors Josh Kushner and Bob Iger, who have agreed to pay a record-setting price in a stunning move.
The purple and gold is now worth a whole lot more green.
Iger, who is a former Disney CEO and Kushner, brother of President Donald Trump's son in-law Jared, are agreeing to buy the Los Angeles Lakers for a record reported $12.5 billion.
It's the latest in a string of blockbuster sports deals. The Lakers themselves were valued at $10 billion in the previous sale last year. The Boston Celtics: $6.1 billion.
In football, the Washington Commanders, just over $6 billion, and the Denver Broncos: $4.65 billion.
Sports economist Rodney Fort says buying a sports team is similar to bidding on rare art.
"It has this component of scarcity. Some people have called it a Van Gogh, you know, kind of value," Fort, who is also a Professor Emeritus of Sports Management at the University of Michigan.
Professional sports teams have become the ultimate status symbol for the ultra wealthy, and the biggest teams have become global entertainment brands, few bigger than the lakers.
Live sports can still reliably draw huge audiences in real time, making broadcast and streaming rights increasingly valuable.
Iger and Kushner called the Lakers "one of the most iconic sports franchises in the world,"saying they're honored to become its "Stewards" and are committed to serving the team and its fans.
For billionaire investors who can buy anything, gaining access to an exclusive owners club may also be part of the attraction.
"You get to know everything about what's going to be going on downtown, or wherever your team is located, because it impacts you. When you buy a team, you buy a lot of other stuff," Fort remarked.
These deals are growing more frequent. Just this week, an investment group bought a $2.6 billion stake in the New York Yankees.
The growing team valuations combined with higher costs to fans raise another question: Are consumers ultimately paying the price?
"Fans are willing to pay more to enjoy the same thing. Prices will go up, but it won't be because the price of the team went up. It'll be because lots and lots of people want to enjoy the thing that's happening at the stadium," Fort spoke.
