Abdelrahman
Alex Rodriguez and Marc Lore are on the brink of officially acquiring the Minnesota Timberwolves.
Following a ruling in their favor by arbitrators on Monday, Rodriguez and Lore announced a victory in their extensive and contentious battle for control of the Timberwolves and the WNBA’s Minnesota Lynx, which had involved current owner Glen Taylor.
The duo will take ownership of the teams pending approval from the NBA’s board of governors. However, the timeline for their official takeover remains uncertain.
“We are very satisfied with today’s ruling,” they stated. “We look forward to collaborating with the NBA to finalize the approval process and complete this transaction as we focus on securing championships for our dedicated fans and the Twin Cities community.”
Rodriguez and Lore initially agreed to purchase the Timberwolves and Lynx from Taylor for $1.5 billion in 2021, beginning with a 20% stake. They had a series of future options that could have enabled them to gain complete control over the teams in the following years, increasing their ownership to 40%. They were poised to escalate that stake to 80% last year when Taylor unexpectedly declared that he would retain interest in the franchises and that they were no longer for sale.
Taylor claimed that Rodriguez and Lore failed to meet a deadline, which enabled him to withdraw from the deal. The announcement was described by Rodriguez and Lore as a “nuclear bomb” that left them utterly shocked. They alleged that Taylor was motivated to back out because the team’s value had increased recently, coupled with the significant sale of the Phoenix Suns for approximately $4 billion shortly after their agreement.
“It’s simply a matter of bad faith to have an agreement and then bow out because you’re offered more money,” Lore expressed last year, via the Minneapolis Star Tribune. “That’s not how you conduct business. Having an agreement means you honor it, which speaks to one’s integrity.”
Consequently, both parties have been engaging in arbitration for quite some time.
Glen Taylor originally acquired the Timberwolves for $94 million back in 1994 and purchased the Lynx five years later.
“Becky and I are disheartened by this 2-1 decision from the panel,” Taylor mentioned in a statement. “We will carefully review the decision before providing any additional comments. We want to express our heartfelt gratitude to Timberwolves and Lynx players, staff, and loyal supporters for their unwavering support.”
With the ruling now favoring Lore and Rodriguez, Taylor is contractually required to sell them the controlling interest in the teams at the original $1.5 billion price. They will gain full ownership of the franchise once they secure the approval of at least 23 out of 30 owners. It remains to be seen if Lore and Rodriguez will consider buying out Taylor and his partners entirely.
According to Forbes, the Timberwolves were valued at $3.1 billion last fall. While this marks a 24% increase from the previous year, they rank as the third-least valuable team in the league, surpassing only the New Orleans Pelicans and Memphis Grizzlies.
As the season progresses, the Timberwolves hold a record of 30-23 heading into Monday night’s match against the Cleveland Cavaliers. The Lynx, who made it to the WNBA Finals last season, currently hold the No. 11 overall pick in the upcoming draft this spring.
