The relationship between Glen Taylor and the partnership of Alex Rodriguez and Marc Lore regarding the Minnesota Timberwolves started on a positive note, much like many courtships. Back in 2021, Taylor, the then-owner, agreed to sell both the NBA’s Minnesota Timberwolves and the WNBA’s Minnesota Lynx to Rodriguez, the celebrated former MLB player turned investor, and Lore, a billionaire entrepreneur.
The deal was structured in an unusual way. Rodriguez and Lore were set to acquire the teams in three stages – initially 20%, followed by another 20%, and finally the remaining 40% this spring. This phased approach was designed for Rodriguez and Lore to gradually become majority owners, while Taylor would remain involved to provide guidance and ensure a smooth transition of stewardship for the franchises.
Early photos captured smiles and optimism, portraying the handover from a respected local businessman (Taylor) to a younger, more cosmopolitan ownership group. However, the atmosphere has drastically changed. Taylor officially called off the sale of the remaining 40% of the teams. In a public statement, Taylor cited that “the closing was required to occur within 90 days following the exercise notice issued by Lore and Rodriguez. That 90-day period expired on March 27, 2024. Under certain circumstances, the buyer could have been entitled to a limited extension. However, those circumstances did not occur.” Taylor concluded firmly, “The Timberwolves and Lynx are no longer for sale.”
Rodriguez and Lore, who currently hold a 40% stake in the teams while Taylor and other limited partners retain the remaining 60%, are reportedly displeased with this turn of events. The timing of this collapse is particularly unfortunate. The Timberwolves are experiencing their best season in two decades, vying for the top seed in the Western Conference. Adding to the turmoil, a former front-office employee faces accusations of stealing a hard drive containing sensitive personal and professional data from a senior basketball executive’s office.
So, where does this leave the ownership situation? Let’s delve into the specifics.
Understanding the Timberwolves Sale Agreement
In 1994, Glen Taylor purchased the Timberwolves for approximately $94 million. Years later, he agreed to sell 80% of the Timberwolves and Lynx to Rodriguez and Lore in a deal valuing the franchises at $1.5 billion. Taylor and his limited partners were slated to keep the other 20%. Rodriguez and Lore successfully completed the first two 20% payments, establishing their current 40% ownership. They affirmed they possessed the necessary funds for the final 40% payment, which was due on March 27.
Why Did the Timberwolves Deal Fall Apart?
Failed major transactions often stem from complications on either the buyer’s or seller’s side, or both. In this case, Glen Taylor and the Rodriguez-Lore partnership have reached an impasse. According to a source familiar with the deal who spoke to USA TODAY Sports on condition of anonymity, Rodriguez and Lore repeatedly missed financial and documentation deadlines throughout the acquisition process. Rodriguez and Lore dispute this claim.
Taylor’s statement and his decision against granting an extension suggest growing frustration with the process. Beyond the transactional hiccups, there were indications that Taylor felt Rodriguez and Lore had not adequately integrated themselves with the Taylor family, and crucially, with the Timberwolves fanbase.
Adding to the friction, Rodriguez and Lore constructed an owners’ suite, against advice, and now, as limited partners embroiled in a dispute with Taylor, they will lose access to this suite, as well as to weekly executive management meetings. Rodriguez and Lore maintain that the suite was intended as a modern upgrade to the arena’s amenities.
The Stance of Alex Rodriguez and Marc Lore
In a statement released on Thursday, Rodriguez and Lore implied “seller’s remorse” on Taylor’s part. The original agreement was based on a $1.5 billion valuation for 80% of the teams. Currently, the Timberwolves and Lynx are valued closer to $3 billion. The Rodriguez-Lore camp suggests Taylor could gain significantly more by selling at the current, higher valuation.
Initially, Rodriguez cited an NBA agreement preventing him from public comments on Thursday. However, by Friday, he adopted a more assertive stance. “It is now personal,” Rodriguez stated to The Athletic. “We can be in this for five years, 10 years, whatever. We’re not going to let go.” Lore echoed this sentiment, stating, “We will use every ounce of effort here to enforce the contract that Glen broke. So that means time, capital, whatever means necessary.” Rodriguez dismissed the complaint about the owners’ suite as a petty and disappointing tactic.
What’s Next for Both Parties?
Taylor has declared that the teams are no longer for sale. Conversely, Rodriguez and Lore believe they fulfilled their obligations, thereby triggering an automatic extension, and anticipate legal proceedings.
Even if Rodriguez and Lore were to prevail in arbitration, they would still require approval from NBA owners to finalize the purchase of the remaining 40%. Securing this approval is not guaranteed, especially if Taylor garners sufficient opposition. A 75% approval from NBA owners is necessary for team sales.
Furthermore, the NBA will conduct rigorous scrutiny of Rodriguez and Lore’s finances to confirm not only the availability of funds but also their capacity to sustain potential years of financial losses. This is a complex issue with no easy resolution in sight.
In conclusion, while Alex Rodriguez and Marc Lore currently own a significant minority stake in the Minnesota Timberwolves, their path to majority ownership is now heavily contested and uncertain. The question of whether Alex Rodriguez will eventually own a larger part of the Minnesota Timberwolves remains open, embroiled in legal and financial complexities.
