Michael Bloomberg Joins Lore/Rodriguez Ownership Group

[Domejandro]

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Behave in this thread or get suspended.

[BlacJacMac]

Some key quotes brought over from the other thread:

Lore and Rodriguez have said throughout the ordeal that the money to complete the third tranche purchase for majority control is all ready to go. That $600-plus million would be used to bring their holdings to 80 percent of the franchises while also buying out all of Taylor’s limited partners. That would leave Taylor with a final 20 percent stake in the franchise that they could buy anytime before March 2025.

Adding Bloomberg to the group would allow them to go forward immediately with a final $300-plus million investment to buy out Taylor rather than waiting until the end of next season, league sources said, if things break in their favor.

“Together, the consortium is moving forward with plans to pay the luxury tax next season and beyond, league sources said, if that is what is recommended by president of basketball operations Tim Connelly to support a team that made the Western Conference finals for the first time in 20 years.”

https://www.nytimes.com/athletic/5545916/2024/06/06/michael-bloomberg-marc-lore-alex-rodriguez-ownership/

[TimberKat]

Great news. Who still worry about 2nd apron for tax consequences? We can now focus on building a championship team. Get the final piece in place for a run.

[BlacJacMac]

This as well from The Atheltic. It sounds like plans for a TV Network and new Stadium will be revealed soon. That would definitely remove fears of the team being moved.

Lore and Rodriguez also have had conversations with RedBird Capital founder Gerry Cardinale about collaborating on a new regional sports station to carry Timberwolves and Lynx games, in addition to other teams in the area, league sources said. Cardinale has deep connections to the New York Yankees and played a leading role in the formation of the YES Network in New York, which would serve as a model for a potential new venture in the Twin Cities area.

[guest81]

I'm conflicted, on one hand this feels like it would be the final nail in the coffin for Glen. A guy like Bloomberg isn't getting involved unless he knows what the end game is going to be. On the other hand, Bloomberg is a huge scumbag and feels kinda gross that he could be a Timberwolves owner

[Domejandro]

Great news. Who still worry about 2nd apron for tax consequences? We can now focus on building a championship team. Get the final piece in place for a run.

People are comparing this to Steve Ballmer owning the Los Angeles Clippers, but I will warn folks that Michael Bloomberg is not making this aquisition because he has a deep seated passion for basketball.

This is an investment, not hobbyism. It is far better than exclusively relying on two cash poor multi-millionaires, but my presumption here is that Bloomberg's financial team sees a major opportunity through the development of a new arena. Ideally, this means that Minnesota will eat Luxury-Tax payments in the short-term to facilitate that arena deal happening, but people should probably pump the breaks a bit on expectations about having infinite money.

[Domejandro]

Fun fact: I passed up on a Bloomberg presidential campaign job that would have netted me like $30k for a few months of work because I find him largely deplorable.

Less fun fact: Morals don't pay the bills, I should have taken the job.

[guest81]

Great news. Who still worry about 2nd apron for tax consequences? We can now focus on building a championship team. Get the final piece in place for a run.

People are comparing this to Steve Ballmer owning the Los Angeles Clippers, but I will warn folks that Michael Bloomberg is not making this aquisition because he has a deep seated passion for basketball.

This is an investment, not hobbyism. It is far better than exclusively relying on two cash poor multi-millionaires, but my presumption here is that Bloomberg's financial team sees a major opportunity through the development of a new arena. Ideally, this means that Minnesota will eat Luxury-Tax payments in the short-term to facilitate that arena deal happening, but people should probably pump the breaks a bit on expectations about having infinite money.

Agreed. Really all these owners can afford the luxury tax. People cant wrap their head around how much a billion dollars actually is. There really isn't anything Glen can't buy that Bloomberg can. It's more about the personalities of the owners and how much they actually care about having a good basketball team

[thinktank]

Bloomberg spent a billion dollars on his campaign for president in three months.

That would cover 5 years of luxury tax payments.

And the team’s value would probably go up a billion or 1.5 billion (at least) during that time.

Meanwhile, 2M in revenue every game.

The Wolves and Minnesota are printing money right now.

[BlacJacMac]

Great news. Who still worry about 2nd apron for tax consequences? We can now focus on building a championship team. Get the final piece in place for a run.

People are comparing this to Steve Ballmer owning the Los Angeles Clippers, but I will warn folks that Michael Bloomberg is not making this aquisition because he has a deep seated passion for basketball.

This is an investment, not hobbyism. It is far better than exclusively relying on two cash poor multi-millionaires, but my presumption here is that Bloomberg's financial team sees a major opportunity through the development of a new arena. Ideally, this means that Minnesota will eat Luxury-Tax payments in the short-term to facilitate that arena deal happening, but people should probably pump the breaks a bit on expectations about having infinite money.

Not just the arena, but a new TV Network as well.

[BlacJacMac]

I'm conflicted, on one hand this feels like it would be the final nail in the coffin for Glen. A guy like Bloomberg isn't getting involved unless he knows what the end game is going to be. On the other hand, Bloomberg is a huge scumbag and feels kinda gross that he could be a Timberwolves owner

Is he worse than the Wilfs?

I think its a common trait among the uber-wealthy.

[Domejandro]

I'm conflicted, on one hand this feels like it would be the final nail in the coffin for Glen. A guy like Bloomberg isn't getting involved unless he knows what the end game is going to be. On the other hand, Bloomberg is a huge scumbag and feels kinda gross that he could be a Timberwolves owner

Is he worse than the Wilfs?

I think its a common trait among the uber-wealthy.

For what it is worth, can't really get worse than the Adelson family (new Dallas Mavericks owners).

[guest81]

I'm conflicted, on one hand this feels like it would be the final nail in the coffin for Glen. A guy like Bloomberg isn't getting involved unless he knows what the end game is going to be. On the other hand, Bloomberg is a huge scumbag and feels kinda gross that he could be a Timberwolves owner

Is he worse than the Wilfs?

I think its a common trait among the uber-wealthy.

I feel like all billionaires are awful scummy people. You have to do a lot of bad things in order to accumulate a billion dollars. Maybe it's just because Bloomberg has been more in the public spotlight

[gandlogo]

Ish.

[shrink]

Good news that the Wolves will be well-funded going forward, regardless. Though I am not a fan of Bloomberg, his financial banking may get the other owners to give final approval for the sale.

I think this further demonstrates though Lore and ARod didn’t have the cash. Why add partners and divide the profits unless you can’t afford the price tag? Generosity? Bringing in Eric Schmidt and the private equity firms for a loan to make previous deadlines should have made that point earlier.

I think any rich guy would want to jump on Taylor’s deal - it’s free money from the equity, and they get a share of a big check from expansion as well. I’ll be curious how big a slice Bloomberg is taking here.

[shrink]

I'm conflicted, on one hand this feels like it would be the final nail in the coffin for Glen. A guy like Bloomberg isn't getting involved unless he knows what the end game is going to be. On the other hand, Bloomberg is a huge scumbag and feels kinda gross that he could be a Timberwolves owner

Do you think? There isn’t any downside for him, whether the sale goes through or not, right?

[shrink]

You know, I changed my mind. We’ll see what share/voice Bloomberg gets, but I think this greatly increases the chances that the team is broken up, and/or moved in the next eight years.

If you look at the Timberwolves as a business, it is the classic example of a target for corporate raiders. It has a motivated seller, who’s willing to sell for less. It has under-performed its market, but has pieces that are valuable. A competent manager can make a quick increase in the company’s value to flip it. And finally, it has guaranteed big payments coming in the future for ownership (upcoming tv deal and huge expansion fees weren’t factored into the sell price).

Both ownership groups will be trying to get an arena, because it boosts the value of the club. The “I don’t know if we need an arena ..” is a line most every owner uses, to try to encourage the public to vote for more of their tax dollars to fund it. But if the public votes it down, expect ARod, Lore and Bloomberg to say, “y’know, I just don’t know how long we can keep the team here financially, and y’know .. Cities X, Y, Z have fans anxious for a team..!” Again, many owners say this too when a stadium bill fails, but it wouldn’t have much teeth if Taylor was saying it.

Anyone follow Bloomberg’s purchase of the Baltimore Orioles? What kind of owner he has been?

[BlacJacMac]

You know, I changed my mind. We’ll see what share/voice Bloomberg gets, but I think this greatly increases the chances that the team is broken up, and/or moved in the next eight years.

If you look at the Timberwolves as a business, it is the classic example of a target for corporate raiders. It has a motivated seller, who’s willing to sell for less. It has under-performed its market, but has pieces that are valuable. A competent manager can make a quick increase in the company’s value to flip it. And finally, it has guaranteed big payments coming in the future for ownership (upcoming tv deal and huge expansion fees weren’t factored into the sell price).

Both ownership groups will be trying to get an arena, because it boosts the value of the club. The “I don’t know if we need an arena ..” is a line most every owner uses, to try to encourage the public to vote for more of their tax dollars to fund it. But if the public votes it down, expect ARod, Lore and Bloomberg to say, “y’know, I just don’t know how long we can keep the team here financially, and y’know .. Cities X, Y, Z have fans anxious for a team..!” Again, many owners say this too when a stadium bill fails, but it wouldn’t have much teeth if Taylor was saying it.

Anyone follow Bloomberg’s purchase of the Baltimore Orioles? What kind of owner he has been?

If you believe Jon K, the "new" group is willing to:
• Pay for a new stadium
• Invest in a new TV network to replace Bally
• Pay the luxury tax going forward if TC thinks its the right thing to do.

If that's true, those aren't the moves of people trying to move and/or gut a team. That's looking to create a very profitable/sustainable infrastructure.

[guest81]

You know, I changed my mind. We’ll see what share/voice Bloomberg gets, but I think this greatly increases the chances that the team is broken up, and/or moved in the next eight years.

If you look at the Timberwolves as a business, it is the classic example of a target for corporate raiders. It has a motivated seller, who’s willing to sell for less. It has under-performed its market, but has pieces that are valuable. A competent manager can make a quick increase in the company’s value to flip it. And finally, it has guaranteed big payments coming in the future for ownership (upcoming tv deal and huge expansion fees weren’t factored into the sell price).

Both ownership groups will be trying to get an arena, because it boosts the value of the club. The “I don’t know if we need an arena ..” is a line most every owner uses, to try to encourage the public to vote for more of their tax dollars to fund it. But if the public votes it down, expect ARod, Lore and Bloomberg to say, “y’know, I just don’t know how long we can keep the team here financially, and y’know .. Cities X, Y, Z have fans anxious for a team..!” Again, many owners say this too when a stadium bill fails, but it wouldn’t have much teeth if Taylor was saying it.

Anyone follow Bloomberg’s purchase of the Baltimore Orioles? What kind of owner he has been?

Nba doesn't want to move a team they want to expand. Minnesota is actually a big market. Not on the level of ny or la, but in the upper half for sure

[guest81]

I'm conflicted, on one hand this feels like it would be the final nail in the coffin for Glen. A guy like Bloomberg isn't getting involved unless he knows what the end game is going to be. On the other hand, Bloomberg is a huge scumbag and feels kinda gross that he could be a Timberwolves owner

Do you think? There isn’t any downside for him, whether the sale goes through or not, right?

The guy probably has a army of lawyers who have already researched the hell out of the situation and knows which is the winning side