In one way or another, sports fandom has always involved some resemblance of value exchange. Since the emergence of modern and contemporary societies, fans, patrons, and pundits have gone on to buy tickets, jerseys, subscriptions and, alas increasingly, gambling products. Yet, there is something afoot amongst the current juncture of professional Western sport that transcends a callous commercialization squeeze of devotion. It resembles much more a conversion of athletic achievements—and the rooting attached to them—into a commodifiable and investable asset: an ROI-bearing recurring revenue stream to be optimized, over-leveraged, and ultimately extracted largely by private-equity firms, sovereign wealth funds, and individual billionaire owners.
As a case in point, the ongoing watershed ownership transfer of the NBA‘s Los Angeles Lakers offers a proto-canon event with a revealing lens through which to understand this transformation. Don’t get it twister; it isn’t so much about who ends up owning a team. Rather, it is a sectional and surgical procedure that allows us to redefine what ownership means in light of a host of parallel macro trends in the wider sports industry. Simply put, it’s about what happens when a storied franchise that functions as a cultural folklore institution—arguably the most iconic in its lane of dribbling—is treated like a real estate object to be flipped, a media property to be monetized, or a portfolio asset to be repositioned.
A major concern about this Lakers story is the extraordinary speed and opacity of the reported sale transaction. To back up the truck a little bit, just days ago at the time of this writing it was reported that the Los Angeles team was being sold (again!) to U.S. empresarios Josh Kushner and Bob Iger for a whooping $12.5 billion, a record-breaking price in the history of professional sports. This report come less than a year after American businessman, philanthropist, and CEO of Guggenheim Partners Mark Walters himself bought a controlling interest in the team from the Buss family for a then-record franchise valuation of approximately $10 billion. Incidentally, Kushner and Iger were initially involved in the NBA expansion process in Las Vegas; they however pivoted to make an aggressive offer to buy the Lakers in a dazzling plot twist.
All this to say that Walter’s own purchase of the legendary hooping franchise was somewhat inexplicably followed in a rapid succession by a prospective transfer to former Disney-CEO Iger as well as Thrive Capital and Oscar Health-executive Kushner after just nine months. Such a timeline is unprecedented and difficult to comprehend outside a wider network of financial, political and institutional relationships. Chief amongst all concerns; where does that leave the Lakers fans? Also, the deal ought to be understood via the plague of questions surrounding Walter’s hinky business affairs, including Abu Dhabi sovereign wealth funding and the broader arrival of institutional capital in sports.
Granted, these relationships do require careful scrutiny, and do not necessarily benefit from compromised premature conclusions. Yet, even with all genuine benefit of the doubt conceded to this financial engineering operation, in this hypernormalized post-Covid-19 era it has become painfully clear that at the highest levels of professional sport, teams and franchises increasingly circulate among a restricting circle of filthy rich owners, whose relationship to them appears solely financial, strategic or political—certainly not emotional.
This latest Lakers deal also marks a decisive break with the mythology of the family-owned franchise. For many decades, the LA team was associated with the Buss family, whose stewardship—whatever its flaws—provided some resemblance of custodianship, allegiance, and continuity. The 17-time NBA champ-brand was not simply a tradable commodity; it was embedded in rich and nuanced Los Angeles history, memory, and identity. Last year’s transition from the Buss family to Walter—and in turn this summer from Walter to an Iger-Kushner ownership structure—have arguably put an unceremonious and uncelebrated end to the romanticized ‘family business’ right before our eyes.
This same trend is visible elsewhere in the NBA’s current zeitgeist. Steve Ballmer’s ownership of the Los Angeles Clippers kind of established the billionaire technology executive as a new archetype of sports impresario: energetic, ostensibly personally invested, and capable of treating a franchise as both a passion project and a multibillion-dollar asset—while breaking a few rules here and there. In many ways, we should have seen Iger and Kushner’s knee-jerk entrance coming. The writing was on the wall. The tea leaves were crystal clear. For their reported interest in sports follows investments in other NBA franchises (Memphis Grizzlies, Miami Heat) and an attempted venomous private-equity model for FIFA’s soccer World Cup. As it has been turning out, the whole point we’re making is that the ballooning Wall Street-captured financial architecture of sports ownership increasingly makes the team’s emotional and athletic purposes subordinate to the imperatives of capital appreciation.
This brings us directly to the defining dilemma of modern sports stakeholdership: fans want championships, while angel-turned-devil investors want the value of their asset to rise—ideally sooner rather than later. These goals can and in many ways do certainly overlap, but are not identical. Winning is expensive, lengthy, costly, burdensome, and often irrational from a narrow financial perspective. It requires investment in players, coaching, scouting, logistics, medical infrastructure, and organizational stability, with no guarantee of a title in return. By contrast, extracting and maximizing more immediate proceeds from media rights, sponsorships, premium seating, gambling, merchandise and digital products can produce measurable and predictable gains without necessarily improving the team’s performance on the court.
This fundamental and inherent goal divergence can perhaps best be unpacked through the notion of the ‘green arrow’-slash-hockey stick metaphor, moving upward toward the right in your typical financial charts. It stands for the embedded assumption that institutional owners—as docile and skivvy subservients of a supply-based neoliberal capitalism—are structurally oriented toward growth: higher valuations, fatter media contracts, expanded commercial opportunities, and ultimately improved returns. Fans and diehards, however, do not tend to experience the team as linearly growing, upward-trending asset. They experience it viscerally, temporally, and emotionally. They remember a parent watching games, a childhood playoff run, an upsetting game, a particular arena, a player who embodied a city. Sports fandom is a heirloom, not a quarterly performance indicator.
This realization is what makes the present alienation of fans so especially vile and acute. For fans are by and large treated as consumers. Yet, their attachment is way deeper than consumption. Think of it this way: consumers switch brands, while nine times out of ten a supporter cannot switch teams without violating a personal, integrity, or communal identity. This asymmetry now resides at the core of the sports economy. Owners can—and do!—buy and sell a franchise at mind-bending price tags after nine months. Players can be traded. Executives can resign. Fans remain. Their loyalty is ironclad precisely because it is not bound by conventional market specifics.
Truly and honestly, the systemic danger is that owners mistake this loyalty for unlimited tolerance. In this sense, Pulitzer-winning Filipino-American journalist Pablo Torre’s metaphor of ‘fracking sports’ is gnarly precisely because it identifies this abhorrent and breakneck logic of extraction, while at the same time alluding to such a quintessentially exploitative industrious practice. As owners and leagues know that for the most part fans will continue watching, they shall drill further. Keep raising ticket prices, restricting public gathering spaces, multiplying subscription tiers, moving games behind various paywalls, selling increasingly invasive sponsorships and turning every moment of attention into a monetizable product. In this process, the rooting fan is not necessarily expelled outright; they are gradually priced out, gentrified, segmented, and reclassified according to purchasing power and tax bracket.
If you’ve attended a live sports event in recent years, you might have noticed that while arenas and stadiums may still be full, the social meaning of the physical on-premise attendance has largely changed. In so many ways, it has become an ultra-luxury, premium experience, all the while ordinary longtime supporters are pushed toward distant low-resolution screens, expensive streaming packages, or unofficial public spaces. For Christ’s sake, New York fans could not even gather freely on public soil outside Madison Square Garden after a Knicks NBA championship earlier this year. This points to the same God-forsaken socio-economic contradiction we’ve been riffing about this whole piece: teams purportedly celebrate collective passion, while enclosing and monetizing the traditional cultural spaces in which that passion can be expressed in the first place.
Think about it; live sports remain extraordinarily and singularly valuable. Except for perhaps music, sport events are the last true monocultural experiences in fragmented Western (media) societies. Audiences no longer watch the same films, read the same news, follow the same television shows, or inhabit the same cultural references. And yet, live games are different. They create a dying breed of synchronized, largely simultaneous attention. Look no further than this year of our Lord 2026: a championship game, a World Cup final, or an NBA playoff contest can still bring millions, if not billions, of people into the same temporal and emotional space. Sports are a remaining form of shared, expressed collective life.
Herein lies the profound concern as to why privatization carries consequences beyond fiscal ownership. Much like with traditional industrial and capitalistic systems, when a common cultural institution—let alone the last one—is optimized around the beck and call of shareholders and investment funds, the public is asked to supply the emotional labor, while private capital captures the financial reward. Privatize wins, and collectivize losses. The key irony in it all is that sports supporters provide the atmosphere, mores, and legitimacy that make franchises valuable. In return, they are being told that prices must rise, access must narrow, and traditions may change.
Look, in fairness, all this is not to proclaim that wealthy oligarchs and billionaires do not, or cannot, genuinely love sports. We’re sure that some undoubtedly do. But our call to arms is instead a pledge to sports ecosystem stakeholders to rethink whether the governance structures of their contemporary industry still allow pure love of winning, loyalty to place, and responsibility to supporters to prevail over the demand for senseless perpetual financial growth. If the answer is no, then the commodification of fandom shall reign supreme, and eventually usher sports into an endless undermining of the very emotional, social, and cultural asset being monetized.
Fans endure losing seasons; they forgive bad decisions; they (at last, reluctantly) even accept changing players and coaches. However, this latest private equity trend in sports might be on borrowed time, for what fans will hopefully increasingly uphold is a realization that their once sacred and undying allegiance has become a loss leader collateral for someone else’s diversified investment strategy. When the game and its beauty are reduced to a fungible asset, the betrayal is not necessarily that its owners seek profit. It is that they seek profit from a source of loyalty they can never seem to reciprocate.
We’d like to thank you sincerely for taking the time to read this and we hope to feel your interest again next time.
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