With the passing of Dr. Jerry Buss on Monday night, one can only reflect favorably and marvel in hindsight upon how this real-estate businessman transformed the Los Angeles Lakers into one of the largest sports brands in the world over the course of 30 years.
In the 31 years prior to Dr. Buss acquiring the franchise (along with the NHL’s Kings and The Forum) in 1979 for what was then a record-setting amount of $20 million, the Lakers enjoyed 6 NBA titles and a win percentage of 57.2%. Under his leadership in the 34 years since, Hollywood has celebrated 10 Lakers championships and enjoyed a 65.9% winning clip.
Such sustained success over time while laying low in the background is a textbook example of how to lead through proper delegation of authority. From basketball minds like Jerry West (wise enough to draft Magic Johnson) through Mitch Kupchak (wise enough to steal Pau Gasol from Memphis), or coaching talents such as Pat Riley through Phil Jackson who each earned the Purple and Gold 5 championship banners apiece, Dr. Jerry Buss has been the anti-Jerry Jones (owner of the Dallas Cowboys). Hire the right people, and then get the hell out of their way as they specialize in what they do best.
Basketball.
Apart from artfully delegating authority, Dr. Buss brought Showtime to Los Angeles. While Jerry West was plucking the on-court parts for Showtime to become reality – drafting the likes of Magic Johnson and James Worthy – he was putting Laker Girls on display during game breaks, running fun promotions for the fans, and in general just being a cool cat around town.
A poor man’s Hugh Hefner perhaps, or at least that’s how it appeared at times.
Then again, there was nothing poor about Dr. Jerry Buss. The 1979 sales price for the afore-mentioned assets was $20 million, and now according to Forbesthe team is worth $1 billion.
That’s a fairly favorable annualized return on investment, wouldn’t you say? Adjusting the 1979 sales price into 2012 dollars yields a sales purchase of $63.3 million.
Oh, darn…just a $937 million gain in value rather than $980 million.
No matter how you slice it, Dr. Jerry Buss was indeed an iconic professional sports owner.
With the clock ticking on the Lakers 2012-13 season and with Dwight Howard’s future still up in the air, the ownership legacy of Dr. Buss’s son, Jim, will take a significant turn one way or the other in upcoming months.
Whichever way the ball bounces, Jim Buss faces a Herculean task to live up to the showmanship and business sense of his father.
For Dr. Jerry Buss will always be remembered as an innovator, a risk-taker, and an entertaining host with a burning competitive passion that didn’t cloud his judgment on key personnel moves over the years.
My take–Dr Buss’ purchase of the Lakers had to be one of the great business deals of all time. With his passing, I believe the Lakers will never be the same.
No comments have been posted yet, be the first!
Post a comment by filling out the form below.
