Kushner previously owned a minority stake in the Memphis Grizzlies, then sold it and bought a small stake in the Miami Heat, which he must sell to buy the Lakers. And earlier this year, he bought a minority a stake in the San Francisco Giants. If the Lakers deal is approved, however, Kushner and Iger will own about 83% of the iconic NBA franchise after the Buss family agreed to sell its share. (Jeanie Buss, however, is legally contesting her siblings’ plan to sell the stake.)

The new owners can bask in the aura of the Lakers’ storied history, celebrity fans, and overall glitz. But there’s another perk: Sports teams have long been considered great tax shelters for wealthy individuals, allowing billionaires to save hundreds of millions of dollars. “It’s a powerful tax shield,” Ram Ahluwalia, founder of Lumida Wealth Management, posted on X over the weekend. “My guess is he is preparing to offset a boatload of carried interest income. If you own a sports team, done correctly, you can get a deduction against income.”

He pointed out that Kushner is likely facing big gains from his holdings in SpaceX, OpenAI, and Stripe. Meanwhile, tax deduction benefits from owning a team are more favorable than owning real estate. By amortizing key assets like media rights and treating other assets as depreciable like contracts and the stadium, team owners can lower their tax bills. That’s possible even as a team appreciates in value while its actual business operations are also profitable.

For example, a team’s roster of players can be counted as an intangible asset that depreciates over time, generating hefty paper losses that offset an owner’s taxable income elsewhere. In fact, as much as 80% of the value of a team is comprised of intangibles. That includes the so-called goodwill that high-quality brands enjoy.

Sports industry analyst Joe Pompliano predicted that as soon as the Lakers deal closes, the new owners will allocate 90% or more of the price tag to intangible assets. “Kushner and Iger will then amortize these assets over 15 years under Section 197 of the tax code, allowing them to deduct the amortization against team income,” he said on X last week.

See you tomorrow,

Jason Ma
jason.ma@fortune.com

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VENTURE CAPITAL

- Smack Technologies, an El Segundo, Calif. and Austin, Texas-based developer of AI software designed for national security and defense, raised $61 million in Series B funding. Costanoa Ventures and First In led the round and were joined by Felicis, Point72 Ventures, Geodesic Capital, Nomi Capital, Scribble Ventures, Fortitude Ventures, Bloomberg Beta, and Palumni VC.

- Network Bio, a Palo Alto, Calif.-based developer of AI models using human biological data, raised $50 million in funding from Section 32, Thiel Bio, Founders Fund, Breyer Capital, Blue Venture Fund, JSL Health Capital, and others.

- Craif, a Tokyo, Japan-based developer of noninvasive cancer-detection tests, raised $33 million in Series D funding. Granite-Integral and Tauns Co. led the round.

- Synthefy, a San Francisco-based developer of AI models for structured and numerical data, raised $6.5 million in seed funding. Wing Venture Capital led the round and was joined by Haystack, Samsung Next, Canonical, and Lightscape.

- Singular Photonics, an Edinburgh, Scotland-based fabless semiconductor company, raised $2.2 million in funding. ACF Investors led the round.

PRIVATE EQUITY

- Francisco Partners agreed to acquire Weave, a Lehi, Utah-based patient engagement and payments platform for health care practices, in a deal valued at $650 million.

- Integrity Growth Partners invested $22 million in Prevalent AI, a Kerala, India-based developer of enterprise data and security software.

- Future Standard acquired a minority stake in KDC, a Bedminster, N.J.-based investment and operating firm for middle-market businesses. Financial terms were not disclosed.

- NVI, backed by GenNx360, acquired Barracuda Specialty Services, a Houma, La.-based inspection and rope access services company. Financial terms were not disclosed.

- THL Partners agreed to acquire a majority stake in Queue-it, a Copenhagen, Denmark-based provider of software that manages high volumes of website traffic. Financial terms were not disclosed.

- Vald, backed by FTV Capital, acquired BridgeAthletic, a San Francisco-based strength and conditioning platform. Financial terms were not disclosed.

EXITS

- Medbase acquired a majority stake in Ardentis Cliniques Dentaires, a Lausanne, Switzerland-based dental care provider, from Columna Capital. Financial terms were not disclosed. 

- Providence Equity Partners agreed to acquire CheckedUp, a New York City-based patient-education and engagement software company for health care practices, from Rockbridge Growth Equity. Financial terms were not disclosed.

FUNDS + FUNDS OF FUNDS

- Broadwing Capital, a Dallas-based private equity firm, raised $440 million for its first fund focused on the manufacturing and services sectors.

- Reach Capital, a San Francisco-based venture capital firm, raised $265 million for its fifth fund focused on the learning, health, and work industries.

PEOPLE

- Foresite Capital, a West Hollywood, Calif. and New York City-based investment firm, hired Jorge Reis-Filho as a Venture Partner. Previously, he was with AstraZeneca.

- Scale Venture Partners, a Foster City, Calif.-based venture capital firm, promoted Siddharth (Sidd) Ramakrishnan to Partner.

- XYZ Venture Capital, a San Francisco-based venture capital firm, hired Manish Patel as a General Partner. Previously, he was with Nava Ventures.