Marc Lore, Alex Rodriguez Fail To Close On Controlling Interest Of Wolves By Deadline

[RealGM Wiretap]

Glen Taylor will remain as controlling owner of the Minnesota Timberwolves after Marc Lore and Alex Rodriguez did not close on their option by the March 27th deadline.

Lore and Rodriguez agreed to purchase the Wolves in 2021 at a valuation of $1.5 billion. The deal allowed them to purchase 20 percent of the team in July 2021, 20 percent more in 2022 and 40 percent more in 2023.

Lore and Rodriguez were expected to have Dyal Capital Partners finance the final purchase.

“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.”

Via RealGM Staff Report

[M2J]

Lol.... Glens like "we're good now, sorry"

[FeatheryTouch]

It's time for both sides to hire some very expensive lawyers, this looks like it's going to be messy.

[elmdawgg69]

This is why team sales happen with all cash up front. These guys are too poor to close. Sell the team to a real owner.

[Boogie_Smooth]

This is why team sales happen with all cash up front. These guys are too poor to close. Sell the team to a real owner.

Saudi money enters the chat

[Dewey]

It’s not rocket science… They had the money to close or they don’t have the money to close

[dougthonus]

It’s not rocket science… They had the money to close or they don’t have the money to close

Sounds like they had the money to close and submitted it to the NBA but needed new approval because the funding group changed.

Definitely leaves things in a bit of a grey area.

Really weird that the original group would bail given the franchise is already worth 2-3x what the sale price is. Also, makes total sense that Taylor wants to back out if he can get away with it for the very same reason.

[MartinToVaught]

It's unfortunate, but I can't blame Taylor for eventually saying time's up and moving on. Can't have this will they, won't they situation hanging over the franchise forever.

When Lore and A-Rod couldn't even handle step 1 of owning a team, it's safe to assume they would have sucked at the rest of the job anyway, so the fans may have just been saved from a lot of heartbreak in the long run.

[Johnny Bball]

This deal and the price of 1.5B and the structure was worked out in 2021 and taylor agreed. Since then Jordan sold Charlotte and Cuban sold part of Dallas for 3 billion valuations. I'm sure Taylor will do whatever it can to make this deal void. I don't beleive a word that he's saying, because if you asked anyone to come up with that 40% now, based on a doubled valuation (or close to), its not hard to get that funding or financers as there is money to be made. Taylor is probably being a douchebag.

[Future Coach]

This deal and the price of 1.5B and the structure was worked out in 2021 and taylor agreed. Since then Jordan sold Charlotte and Cuban sold part of Dallas for 3 billion valuations. I'm sure Taylor will do whatever it can to make this deal void. I don't beleive a word that he's saying, because if you asked anyone to come up with that 40% now, based on a doubled valuation (or close to), its not hard to get that funding or financers as there is money to be made. Taylor is probably being a douchebag.

I'm going to go out on a limb here and suggest that Kevin Garnett likely agrees with this assessment.

[Eagle4]

No shocker when you have a new face/cash cow in Antman and a solid fanbase that's been dying to be competitive again and buy tickets & merch.

[haste10176]

It’s not rocket science… They had the money to close or they don’t have the money to close

Its not that simple of course they have the money but the NBA needs to approve it.. The franchise has doubled in value since the 2021 valuation thats why the current owner wants to pull the plug on the deal completeing.. They could literally get finance anywhere when it doubles the money instantly.

[haste10176]

This is why team sales happen with all cash up front. These guys are too poor to close. Sell the team to a real owner.

Only one team sold that way and that was the clippers cause Balmer has billions sitting in a bank account which is not normal.. So no your completely wrong

[RipCityKJ]

This is why team sales happen with all cash up front. These guys are too poor to close. Sell the team to a real owner.

Only one team sold that way and that was the clippers cause Balmer has billions sitting in a bank account which is not normal.. So no your completely wrong

Completely wrong? 6 of the last 8 teams sold were to single owners

Robert Sarver bought the Suns for $4 billion

Miriam Adelson & Patrick Dumont bought 69% of the Mavs for $3.9 billion

Joseph Tsai bought the Nets for $3.3 billion

Ryan Smith bought the Jazz for $1.6 billion

Tilman Fertitta bought the Rockets for $2.2 billion

Tony Ressler bought the Hawks for $850 million

[donemilio21]

This is why team sales happen with all cash up front. These guys are too poor to close. Sell the team to a real owner.

Only one team sold that way and that was the clippers cause Balmer has billions sitting in a bank account which is not normal.. So no your completely wrong

Completely wrong? 6 of the last 8 teams sold were to single owners

Robert Sarver bought the Suns for $4 billion

Miriam Adelson & Patrick Dumont bought 69% of the Mavs for $3.9 billion

Joseph Tsai bought the Nets for $3.3 billion

Ryan Smith bought the Jazz for $1.6 billion

Tilman Fertitta bought the Rockets for $2.2 billion

Tony Ressler bought the Hawks for $850 million

I think all those guys except for Ballmer still financed their deals. They got loans using their wealth as leverage/collateral. Single owner, but still financed portion of their purchase.

[shrink]

This is why team sales happen with all cash up front. These guys are too poor to close. Sell the team to a real owner.

Before ARod and Lore, Taylor had two offers (including Ischbia) for a bigger valuation, but neither would swear to keep the team in Minnesota.

It’s not just finding richer owners to Taylor. That would be easy (especially right now). It’s finding richer owners that will keep the team in Minnesota.

[shrink]

This deal and the price of 1.5B and the structure was worked out in 2021 and taylor agreed. Since then Jordan sold Charlotte and Cuban sold part of Dallas for 3 billion valuations. I'm sure Taylor will do whatever it can to make this deal void. I don't beleive a word that he's saying, because if you asked anyone to come up with that 40% now, based on a doubled valuation (or close to), its not hard to get that funding or financers as there is money to be made. Taylor is probably being a douchebag.

I don’t get what you think you’re exposing here. Taylor literally said he wants to get back the higher valuation. If the valuation dropped, Lore and ARod might try to get out of the deal.

Read on Twitter

Also, to your “its not hard to get funding” line, ARod and Lore literally had the Carlyle group back out on their funding for this deal last week, and they have struggled to come up with the money at every deadline. It might be hard to get funding if you’re THEM, and the investment firms worry you’re a poor boy swimming in a big pool and they might not get their loans repaid.

[shrink]

I need more evidence (and we might never get it), but I have some reckless speculation.

My guess here is that when Lore and ARod’s funding fell out last week, and the deadline was approaching, they tried to sell some more of their current equity in the team to Dyal/Blue Owl/Home Court. They already sold 4% last time to that google exec to make the last 20% payment. Dyal is a private equity firm that has been approved by the NBA to buy up small bits of teams from minority owners who wanted out. But the NBA has only allowed them to own 6%. So perhaps ARod and Lore are saying, “we’ll make the extension, it just needs NBA approval” and Taylor is saying, “the contract is for an extension to get approval of THIS deal, not some other deal to acquire funding to pay for this deal.”

[Roy T]

That’s fishy as hell.

Also a bit weird the buyers had problems to cough up the money. If the valuation doubled since 2021 any lender would be more than happy to borrow against that equity

[Johnny Bball]

This deal and the price of 1.5B and the structure was worked out in 2021 and taylor agreed. Since then Jordan sold Charlotte and Cuban sold part of Dallas for 3 billion valuations. I'm sure Taylor will do whatever it can to make this deal void. I don't beleive a word that he's saying, because if you asked anyone to come up with that 40% now, based on a doubled valuation (or close to), its not hard to get that funding or financers as there is money to be made. Taylor is probably being a douchebag.

I don’t get what you think you’re exposing here. Taylor literally said he wants to get back the higher valuation. If the valuation dropped, Lore and ARod might try to get out of the deal.

Read on Twitter

Also, to your “its not hard to get funding” line, ARod and Lore literally had the Carlyle group back out on their funding for this deal last week, and they have struggled to come up with the money at every deadline. It might be hard to get funding if you’re THEM, and the investment firms worry you’re a poor boy swimming in a big pool and they might not get their loans repaid.

Exposing? What are you reading that isn’t there?

Wow, you’re right, you really are not getting it in either thread. The only reason you think they have struggled to come up with money is because Taylor told you so. Because all the info you gave on this sale comes from the guy that doesn’t want to sell for that little anymore and wants to back out on the deal. Getting it now?

As for Carlisle backing out, I clearly think they are the ones getting screwed here. And if ARod needed money, this doesn’t have to be a loan, it can be for shares in the team (explained because you THINK ARod is a bad credit risk, wtf) of which lately there seems to be no lack of money willing to buy shares without ownership/decision making.