On Thursday, Glen Taylor announced that the agreement was canceled, yet A-Rod and Marc Lore are alleging that he is experiencing regret as a seller.
This week, a series of events unfolded regarding the potential sale of the Minnesota Timberwolves and Minnesota Lynx. Glen Taylor, the proprietor of both NBA and WNBA teams, declared on Thursday that they were no longer on the market. Taylor asserts that the prospective buyers, Marc Lore and former MLB star Alex Rodriguez, failed to meet the deadline to finalize the deal. Lore and A-Rod, however, have countered this claim, asserting that they fulfilled their obligations and remain dedicated to completing the transaction.
When Lore and Rodriguez initially agreed to purchase a majority stake in the franchises for a reported $1.5 billion back in 2021, they structured the payment to Taylor in installments. The agreement stipulated that the acquisition should have been completed by Wednesday.
Taylor’s unexpected press release on Thursday serves as a surprising turn of events in this ongoing saga.
Glen Taylor, Chairman of Taylor Sports Group, Inc., the general partner of Minnesota Timberwolves Basketball Limited Partnership (“Timberwolves and Lynx”), this morning confirmed the expiration of the option of Marc Lore and Alex Rodriguez to acquire controlling interest in the Timberwolves and Lynx.
Under terms of the purchase agreement, 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.
“I will continue to work with Marc, Alex and the rest of the ownership group to ensure our teams have the necessary resources to compete at the highest levels on and off the court,” said Taylor. “The Timberwolves and Lynx are no longer for sale.”
Taylor’s rapport with Lore and Rodriguez deteriorated during the transitional phase. Although Lore and Rodriguez had obtained the required investment to complete the sale, Taylor contends that they failed to adhere to the stipulated timelines in their contract, as reported by ESPN.
To elaborate further, Taylor maintains that Lore and Rodriguez are not eligible for an extension because the NBA’s advisory and finance committee has yet to scrutinize the final segment of the sale, the board of governors has not granted approval, and the financial transaction has not been executed, according to The Athletic.
However, Lore and Rodriguez hold a different perspective. Their spokesperson, as cited by The Athletic, expressed their disagreement with Taylor’s stance.
“We are disappointed with Glen Taylor’s public statement today. We have fulfilled our obligations, have necessary funding and are fully committed to closing our purchase of the team as soon as the NBA completes its approval process. Glen Taylor’s statement is an unfortunate case of seller’s remorse that is short sighted [sic] and disruptive to the team and the fans during a historic winning season.”
The contract specifies that conflicts such as this are to be settled through mediation and arbitration, as reported by The Athletic.
Rodriguez conveyed to The Athletic, “This has become personal now. We’re prepared to engage in this dispute for however long it takes, whether it’s five years or ten years. We’re not backing down.”
Lore further commented on the Dane Moore NBA podcast, stating, “I believe Glen Taylor has concluded that the value of this team has significantly increased since the deal was initially made, and he is now unwilling to adhere to the terms of the contract. It’s straightforward.”
Lore and Rodriguez acquired a 40% ownership stake in the franchises initially, with plans to increase their share to 80% this week. Despite reports earlier this month suggesting that the Carlyle Group withdrew a $300 million investment, Lore and Rodriguez, along with former New York Yankees star Rodriguez, purportedly secured backing from Dyal Capital Partners, another private equity firm, to fulfill their financial requirements. The consortium submitted financial documentation to the NBA last week in a bid to meet the deadline, as per The Athletic.
Meanwhile, the Timberwolves are experiencing a successful season with a record of 51-22, contending for the top seed in the Western Conference. They recently inked guard Mike Conley to a two-year, $20.8 million contract extension. Moreover, their payroll is poised to surge next season with the activation of extensions for key players Anthony Edwards and Karl-Anthony Towns.
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