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Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 4:01 am
by Chuck Everett
Seems like A-Rod and Marc Lore don't have the bread. They are supposed to make their final payment by March 31st.
https://basketball.realgm.com/wiretap/275043/Carlyle-Group-Exits-Ahead-Of-Next-Payment-For-Marc-Lore-Alex-Rodriguez-To-Buy-WolvesGlen Taylor said on Tuesday there’s been issues surrounding $300 million of financing for the latest funding round. The deadline for the payment, which will give the duo another 40% bringing them to 80% of the team, is due at the end of March.
“They (Lore and A-Rod) had an equity group that was going to come in and put in $300 million, and that equity group has either withdrawn or the NBA has denied them,” Taylor told reporters. “They have to go out and find new revenue. That I do know.”
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 4:08 am
by MN7725
will be an interesting dynamic as ANT becomes potential face of league to be on a "poor" team, that already is an afterthought
sucks as Wolves fan, but NBA will get ANT where he needs to be if he reaches his potential
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 4:26 am
by Mavrelous
The odds of the new ownership giving up the 1.5B valuation they secured are slim to none.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 9:34 am
by Zeno
Mavrelous wrote:The odds of the new ownership giving up the 1.5B valuation they secured are slim to none.
This is just wild speculation but are either the NBA or (more likely) Taylor trying to kill the deal to get the team back on the market? Him commenting publicly on the issues and then the nba denying being involved in them smells of turmoil and potential lawsuits to me.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 11:07 am
by KembaWalker
Zeno wrote:Mavrelous wrote:The odds of the new ownership giving up the 1.5B valuation they secured are slim to none.
This is just wild speculation but are either the NBA or (more likely) Taylor trying to kill the deal to get the team back on the market? Him commenting publicly on the issues and then the nba denying being involved in them smells of turmoil and potential lawsuits to me.
Most likely. Glens finally got a good team so he thinks he can either turn his reputation around or get a lot more money
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 11:52 am
by Johnny Bball
Seems to me the loss isn't theirs but the Carlyle Group's. Carlyle is the government military contractor. Maybe they need that 300 million to pay off part of someone else's debt.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 12:51 pm
by Sofia
How the **** were they able to get a franchise on layaway anyway? Should hand over the bag in full.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 12:58 pm
by God Squad
Glen Taylor
"Bish better have my money"
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 1:12 pm
by MoneyTalks41890
This is definitely a shift in tone from Taylor. Arod and Lore have had trouble getting the money together for each of the scheduled payment dates, but in the past Taylor has said things like he's not concerned.
I really don't want PE firms getting into the NBA any more than they already are, so I'm hoping something else happens here.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 2:58 pm
by strokerace
Is this an all or nothing situation? If Lore and Arod can't come up with the next payment, is the whole deal off?
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 3:03 pm
by Chuck Everett
strokerace wrote:Is this an all or nothing situation? If Lore and Arod can't come up with the next payment, is the whole deal off?
That's what I'm wondering. Although, it could be the case that the previous payments purchased percentage of the team. This final payment could have given them the majority ownership stake.
This is not the first time this has happened in the NBA. Christian Laettner tried to buy the Grizz from the late Michael Heisley and he wanted to do a payment plan. Heisley wasn't interested and sold to Robert Pera.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 3:20 pm
by GeorgeSears
Interesting situation because Glen Taylor has apparently never gone into the tax during his ownership of the team. It's not unusual, the Kroenkes never paid the tax either when it came to the Nuggets. Neither team were ever good enough to be put in that situation until recently. However, after next season, there's going to be a $24M luxury tax bill to keep this team.
They could keep their core intact and not have to pay the tax bill, but that means they'll have to trade players like Naz Reid and gut their bench.
The next ownership group needs to be prepared to spend.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 4:44 pm
by shrink
GeorgeSears wrote:Interesting situation because Glen Taylor has apparently never gone into the tax during his ownership of the team. It's not unusual, the Kroenkes never paid the tax either when it came to the Nuggets. Neither team were ever good enough to be put in that situation until recently. However, after next season, there's going to be a $24M luxury tax bill to keep this team.
They could keep their core intact and not have to pay the tax bill, but that means they'll have to trade players like Naz Reid and gut their bench.
The next ownership group needs to be prepared to spend.
Glen Taylor and the Timberwolves have gone into the luxury tax four times. People assume that Taylor is cheap because it’s only four, but you are correct, like most owners, he doesn’t want to pay lux taxes on a bad team. In fact, one could argue that Taylor is more spendy than most, since he has spent into the lux when his team was
mediocre (50.2% winning percentage). He has also paid those luxury taxes despite having one of the lowest revenues from an NBA team, so that is likely out-of-pocket. And of course, his spending on a massive (for the time) contract for Garnett back in the day scared the other owners so much that they instituted max deal language into the very next CBA.
Regardless of who owns the Wolves, it’s unlikely that they are going to try to dive back under the lux this Summer. They don’t have any big expirings they can let walk, and locked up their expensive players on new deals and extensions for the next few years. Moreover, while all the NBA franchises saw a substantial increase in value last year, MIN’s increase was #2. The 83-year old Taylor has no heirs that want the team, so if ARod and Lore don’t have the money, he will likely look for other buyers for estate planning purposes. And just like when we sell a home, spending a little before the sale helps make the franchise attractive to buyers and raise the price. It’s unlikely he’ll be responsible for a big luxury tax bill two years from now.
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 7:59 pm
by shrink
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 8:24 pm
by Ralof
MN7725 wrote:but NBA will get ANT where he needs to be if he reaches his potential
i have this feeling that the team would be one between
-nets
-lakers
-knicks
-clippers
am i a seer ?a magician?a clairvoyant?? eh eh eh
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 9:11 pm
by AleksandarN
God Squad wrote:Glen Taylor
"Bish better have my money"
Re: Minnesota ownership change in jeopardy?
Posted: Wed Mar 20, 2024 10:17 pm
by Clemenza
Mavrelous wrote:The odds of the new ownership giving up the 1.5B valuation they secured are slim to none.
On NBA-Sirius XM today they said the team is now worth $3-4 billion, they're winning games, and the current owner looks to be having second thoughts-sellers remorse.
Re: Minnesota ownership change in jeopardy?
Posted: Thu Mar 21, 2024 6:38 am
by Mavrelous
Clemenza wrote:Mavrelous wrote:The odds of the new ownership giving up the 1.5B valuation they secured are slim to none.
On NBA-Sirius XM today they said the team is now worth $3-4 billion, they're winning games, and the current owner looks to be having second thoughts-sellers remorse.
Even w/o winning, they have a future star in Ant, and the Hornets just sold for double the money, Taylor wishes they fail to pay the 40% and he keeps 60% control of the franchise, but not gonna happen, what will likely happen is that the new ownership will have to pay premium interest on the financing they'll get, lose lose situation sadly.
Re: Minnesota ownership change in jeopardy?
Posted: Thu Mar 28, 2024 3:30 pm
by Mavrelous
Taylors lawyers and Lores lawyers are looking up Yacht models as we speak!
?s=20
Re: Minnesota ownership change in jeopardy?
Posted: Thu Mar 28, 2024 3:32 pm
by Ckay
Sell it for more.