The Billion-Dollar Shield: Why Joshua Kushner’s Lakers Deal Smells Like a Tax Dodge

Joshua Kushner’s acquisition of the Los Angeles Lakers has sent shockwaves through the sports world. Beneath the glamour and prestige of owning an iconic franchise lies a more sinister motive: a powerful tax shield.

Kushner’s deal is not about investing in sports teams as an asset class, but rather a way to offset his massive carried interest income. Carried interest refers to the share of investment profits taken by private equity and venture capital firms. This lucrative perk comes with a hefty tax bill. By acquiring a sports team, Kushner can create a non-passive deduction against his income, reducing his taxable liability.

Carried interest income can be astronomical for investors like Kushner, who have stakes in high-flying companies such as SpaceX and OpenAI. Depreciating goodwill expenses from the Lakers brand allows Kushner to turn his carried interest into lower-taxed capital gains. This strategy is not new; Warren Buffett’s Berkshire Hathaway has long exploited tax loopholes through its portfolio of brands, including See’s Candies and Dairy Queen.

Mark Cuban’s management of the Dallas Mavericks demonstrates how to transform high-income tax into lower-taxed capital gains. The Lakers deal is merely the latest example of this game-playing. It raises questions about our tax system: have we created an environment where the rich can afford to indulge in elaborate tax dodges while ordinary citizens are left footing the bill?

The Lakers acquisition is part of a broader trend, as professional teams become increasingly coveted by deep-pocketed investors. Silicon Valley venture capitalist Vinod Khosla’s recent purchase of the Seattle Seahawks for $9.6 billion and the Boston Celtics’ sale in 2025 demonstrate how sports franchises are being treated as commodities.

This fixation on tax shelters highlights fundamental questions about societal priorities: are we creating a system where the wealthy can game the system to their advantage, while ordinary citizens are left with the tab? Or do we take a harder look at closing these loopholes and ensuring that everyone contributes their fair share?

Owning a sports team provides access to unique business opportunities and allows owners to join an exclusive club of elite franchise holders. However, this comes at a cost: the erosion of our tax base and the perpetuation of a system where the rich get richer while everyone else struggles to keep up.

The real cost is not the $12.5 billion price tag, but rather the long-term consequences of allowing billionaires to exploit tax loopholes. As we watch this drama unfold, one thing is clear: Joshua Kushner’s Lakers deal is less about basketball than it is about billionaires gaming the system for their own benefit.

Our tax system needs a reboot. The question now is whether we’ll allow billionaires to continue exploiting its weaknesses or if we’ll finally take action to close these loopholes and ensure that everyone contributes their fair share.