Inside the Minnesota Meltdown of A-Rod, Lore and the T-Wolves Deal

[ad_1]

Glen Taylor’s sale of the Minnesota Timberwolves to Marc Lore and Alex Rodriguez captivated the sports business world over the last three years, as the buyers scrambled to raise capital and the deal’s multiyear structure raised eyebrows amid soaring NBA valuations.

The process reached a head on Thursday with dueling statements from the two sides.

More from Sportico.com

“The Timberwolves and Lynx are no longer for sale,” Taylor said on Thursday morning, citing A-Rod and Lore’s failure to make a payment to take control of the team by the late March deadline.

The buyers countered two hours later.

“We have fulfilled our obligations, have all necessary funding and are fully committed to closing our purchase of the team as soon as the NBA completes its approval process,” Lore and Rodriguez said in a statement. “Glen Taylor’s statement is an unfortunate case of seller’s remorse that is short sighted and disruptive to the team and the fans during a historic winning season.”

A Twitter post with what appears to be excerpts of the purchase agreement shows language that indicates Lore and Rodriguez are entitled to “an additional ninety days” if held up by NBA or other governmental approvals. A source familiar with the deal confirmed that the screenshots are accurate.

Should it fall apart, the inability to get this deal to the finish line is a massive swing and miss—or even an airball—for A-Rod and Lore. That’s especially true given the value appreciation of the team, along with its rapid ascent to the top of the NBA standings. And in the end, this might be what Taylor wanted all along.

In early 2021, the average NBA team was worth $2.37 billion, per Sportico’s inaugural NBA team valuations, and Minnesota checked in at $1.43 billion. Three months later, Taylor reached a deal to sell to Lore and Rodriguez at a roughly $1.55 billion valuation.

According to the deal points, as laid out in a 2021 lawsuit filed by a Timberwolves limited partner, Lore and Rodriguez bought the initial 20% of the Timberwolves and WNBA’s Minnesota Lynx in July 2021. The next roughly 20% stake, which they bought last…

[ad_2]
Source link : https://sports.yahoo.com/inside-minnesota-meltdown-rod-lore-225929039.html

Author : Sportico

Publish date : 2024-03-28 22:59:29

Copyright for syndicated content belongs to the linked Source.