Minnesota Timberwolves owner Glen Taylor is no longer selling his controlling stake in the franchise to minority owners Marc Lore and Alex Rodriguez, he announced Thursday.
In 2021, Taylor agreed to sell the Timberwolves and WNBA’s Minnesota Lynx for $1.5 billion. A gradual transfer of power over a number of years was the agreed structure, as Lore and Rodriguez made a series of payments.
Taylor alleges Lore and Rodriguez failed to meet contractual deadlines and obligations of the sale process. Lore and Rodriguez met their financial obligations to Taylor.
Despite losing the financial backing of the Carlyle Group, their final payment was made last week. But according to Taylor, the Lore-Rodriquez group didn’t meet the criteria for an extension by the March 27 deadline.
BREAKING: The Minnesota Timberwolves just issued a statement saying Alex Rodriguez and Marc Lore failed to make the final payment for majority control of the team.
That means current owner Glen Taylor will keep the team while A-Rod and Lore stay minority owners with a 40% stake. pic.twitter.com/RLSQbAMvJp
— Joe Pompliano (@JoePompliano) March 28, 2024
“We are disappointed with Glen Taylor’s public statement today,” Lore and Rodriguez said in the statement. “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.
“Glen Taylor’s statement is an unfortunate case of seller’s remorse that is shortsighted and disruptive to the team and the fans during a historic winning season.”
According to Forbes, the business plan was for the Lore and Rodriguez group to buy the Timberwolves and the WNBA’s Minnesota Lynx in “three parts over four years with a weighted average price of $1.6 billion, including about $100 million of seller financing.”
Alex Rodriquez, Marc Lore remain minority owners of the Minnesota Timberwolves
In July 2021, the group purchased roughly 20%. In March 2023, they acquired another 20%. Lore and Rodriguez had until December 2023 to buy another 40%, giving them control of the team. The final 20% would be acquired at the end of 2025.
Per HoopsHype, the Timberwolves have a little over $200 million of debt. The 40% purchased by the Lore-Rodriguez group paid Taylor approximately $500 million.
Because the Lore-Rodriquez group still paid half a billion dollars, they remain limited partners. However, neither Lore nor Rodriquez can have any involvement in front-office decisions.
NEWS: Statement on @Timberwolves and @minnesotalynx Ownership
Full release:https://t.co/ZlvpHQfTnG
— Timberwolves PR (@Twolves_PR) March 28, 2024
Although Taylor is no longer selling the franchise, the 82-year-old said in his official statement that he “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.”
Other limited partners for the Timberwolves and Lynx include R. Wynn Kearney, Jr., Meyer Orbach, William J. Popp, Terri, Popp, Phil Saunders Family, Joyce Sexton and William Sexton.
If Taylor changes his mind in the future and decides to sell the Timberwolves, he would receive at least $2.4 billion. Taylor reportedly kept all of the $500 million that was given to him by the Lore-Rodriquez group.
In 2023, Forbes listed the Timberwolves as the NBA’s 29th most-valuable team. It was a one-year change of roughly 50%. Under owners Taylor, Lore, and Rodriguez, their operating income came to $47 million.
