Source: Fortune
Summary
Thrive Capital founder Joshua Kushner and former Disney CEO Bob Iger have agreed to buy the Los Angeles Lakers for $12.5 billion, a record-breaking deal that would also provide tax benefits. According to Ram Ahluwalia, founder of Lumida Wealth Management, the acquisition is a “powerful tax shield” that could help Kushner offset income from his holdings in SpaceX, OpenAI, and Stripe. Ahluwalia notes that owning a sports team can provide a “non-passive” deduction, and that Kushner may be following in the footsteps of Warren Buffett, who has used similar strategies to reduce his tax bill.
Our Reading
The numbers tell one story.
Kushner’s Lakers deal is a tax play, not a sports play. Ahluwalia points out that Kushner is likely facing big gains from his holdings in SpaceX, OpenAI, and Stripe, and that owning a sports team can provide a “non-passive” deduction. This is not a new strategy – Warren Buffett has mastered the art of depreciating goodwill expenses from high-quality brands. Mark Cuban also handled the Dallas Mavericks’ finances well, growing the equity value while transforming high-income tax into lower-taxed capital gains.
The strategy enters a familiar phase.
Kushner’s move is not unique – pro teams have become hot commodities, with Vinod Khosla agreeing to buy the Seattle Seahawks for $9.6 billion last month. The Boston Celtics were sold for $6.1 billion in 2025, a record at the time. Team owners can lower their tax bills by amortizing key assets like media rights and treating other assets as depreciable.
The announcement sounds familiar.
Team revenue has become far steadier thanks to long-term media deals, making it possible for teams to stay profitable regardless of attendance. Consumers are spending more on in-person experiences, and sports captures that spending better than most entertainment options. Franchise values have compounded at a pace few other asset classes can match over the long run.
It’s a powerful tax shield.
Author: Evan Null
