The sale of the Minnesota Timberwolves and Lynx to Marc Lore and Alex Rodriguez is back on track after a three-member arbitration panel ruled in their favor on Monday.
However, that sale has one final, major hurdle to clear — the approval of the other NBA owners.
The process of this sale started four years ago with Lore and Rodriguez essentially buying the team in installments from current owner Glen Taylor, a unique sale process that was agreed to in advance by both parties (as was the $1.5 billion price tag, the value of the franchise has risen considerably since that agreement). At dispute was the final payment of that sale, which Taylor voided, saying it came after the prescribed deadline. However, Lore and Rodriguez argued that they did turn in the paperwork on time, and the sale agreement allowed for an extension of 90 days to finalize the deal if their financing was in place before the deadline — and it was despite changing financing partners. Lore and Rodriguez argued Taylor simply had seller’s remorse. The arbitration panel agreed with Lore and Rodriguez, who released this statement.
Marc Lore and Alex Rodriguez today announced that the arbitration in the Minnesota Timberwolves and Lynx ownership dispute was decided in favor of Lore and Rodriguez. The decision endorsed Lore and Rodriguez’ interpretation of the purchase agreement and confirmed that the contractually agreed timeline for Lore and Rodriguez to obtain NBA approval and complete their acquisition of the teams has not expired.
Marc Lore and Alex Rodriguez commented, “We are extremely pleased with today’s decision. We look forward to working with the NBA to complete the approval process and close this transaction so that we can turn our attention to winning championships in Minnesota for our incredible fans and the Twin Cities community.
Marc & Alex
Current owner Glen Taylor released this statement:
Minnesota Timberwolves Basketball Limited Partnership (“Timberwolves and Lynx”) today announced that the arbitral panel issued its decision finding that the option for Marc Lore and Alex Rodriguez to acquire control of the Timberwolves and Lynx should be extended for an additional 90 days and that Messrs. Lore and Rodriguez may continue to pursue their application for NBA approval.
“Becky and I were disappointed by this 2-1 decision from the panel,” said Glen Taylor, Chairman of Taylor Sports Group, Inc., the general partner of the Timberwolves and Lynx. “We will review the decision thoroughly prior to making any further comment. We would like to express our sincere appreciation to Timberwolves and Lynx players, staff, and loyal fans for their support.”
The sale of the team now has to be approved by the NBA Board of Governors, the other 29 owners. That may not be a given. Are the other owners going to approve a sale over the objection of the current owner? Plenty of owners may see a precedent they don’t like there. That said, the new ownership group is popular with the other owners.
Because of the unusual sale arrangement and the changing of financing partners, Lore and Rodriguez have battled the perception that they do not have the money to make this purchase. Lore told the Minnesota Star Tribune when Taylor tried to nix the sale, “I’m flush with cash. I’ve got literally hundreds of millions of dollars in the bank, ready to invest in the Wolves and bring home a championship.”
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