[Krawczynski] Alex Rodriguez and Marc Lore in serious talks to become the next owners of the Minnesota Timberwolves

[KGdaBom]

Biggest “check is in the mail” excuse I ever heard!

[Biff Cooper]

https://basketball.realgm.com/wiretap/273742/Marc-Lore-Alex-Rodriguez-Working-On-Deal-With-Carlyle-Group-For-Minority-Stake-In-Wolves-At-$23B-Valuation

So A-Rod & Lore currently own 40% stake. Speculating that they'll come up with enough finances to get them a majority stake in the team and will use Carlyle investment to pay for the rest of the 40% they are on the hook for?

[Klomp]

It sounds like it's this next payment that they're helping with.

The pair have an option to add another 40%, which they must exercise by year-end and fund by next March. That's the piece Carlyle is expected to help with, although discussions remain ongoing with other investors that might take small pieces.

https://www.axios.com/newsletters/axios-pro-rata-40e53976-5cdd-445f-bbe9-a070a1372f71.html

[Saltine]

They have an option to buy 40% of the team, that share is currently valued at $920 million, for $600 million.... it's a pretty easy move for the Finance guys. I don't think most of our sports writers have a clue about how much of a slam dunk this is. Especially with the new TV deal, and the free $200+ million cash infusion from the leagues future expansion on the horizon. Investing is a very low risk, high reward move. The idea that they won't be able to come up with the cash is just asinine.

They could probably come up with $150 million for 10% of the team just by asking Rudy, KAT and Mike C to invest, another 10% to KG should be a no brainer.... it's pretty easy when you know a lot of millionaires.

[Worm Guts]

They have an option to buy 40% of the team, that share is currently valued at $920 million, for $600 million.... it's a pretty easy move for the Finance guys. I don't think most of our sports writers have a clue about how much of a slam dunk this is. Especially with the new TV deal, and the free $200+ million cash infusion from the leagues future expansion on the horizon. Investing is a very low risk, high reward move. The idea that they won't be able to come up with the cash is just asinine.

They could probably come up with $150 million for 10% of the team just by asking Rudy, KAT and Mike C to invest, another 10% to KG should be a no brainer.... it's pretty easy when you know a lot of millionaires.

I’m pretty sure current players can’t be owners.

[BlacJacMac]

They have an option to buy 40% of the team, that share is currently valued at $920 million, for $600 million.... it's a pretty easy move for the Finance guys. I don't think most of our sports writers have a clue about how much of a slam dunk this is. Especially with the new TV deal, and the free $200+ million cash infusion from the leagues future expansion on the horizon. Investing is a very low risk, high reward move. The idea that they won't be able to come up with the cash is just asinine.

They could probably come up with $150 million for 10% of the team just by asking Rudy, KAT and Mike C to invest, another 10% to KG should be a no brainer.... it's pretty easy when you know a lot of millionaires.

Not only is that not legal, but I can't see Lore offering the same valuation they got the team for. If the Carlyle deal goes through, Lore is already profiting off his ownership.

[Saltine]

They have an option to buy 40% of the team, that share is currently valued at $920 million, for $600 million.... it's a pretty easy move for the Finance guys. I don't think most of our sports writers have a clue about how much of a slam dunk this is. Especially with the new TV deal, and the free $200+ million cash infusion from the leagues future expansion on the horizon. Investing is a very low risk, high reward move. The idea that they won't be able to come up with the cash is just asinine.

They could probably come up with $150 million for 10% of the team just by asking Rudy, KAT and Mike C to invest, another 10% to KG should be a no brainer.... it's pretty easy when you know a lot of millionaires.

I’m pretty sure current players can’t be owners.

This isn't true anymore. New CBA allows it.

Read on Twitter

Game changer: The league's new collective bargaining agreement will give players the ability to invest in NBA and WNBA teams, as well as promote and/or invest in sports betting and cannabis companies, sources tell

[younggunsmn]

They have an option to buy 40% of the team, that share is currently valued at $920 million, for $600 million.... it's a pretty easy move for the Finance guys. I don't think most of our sports writers have a clue about how much of a slam dunk this is. Especially with the new TV deal, and the free $200+ million cash infusion from the leagues future expansion on the horizon. Investing is a very low risk, high reward move. The idea that they won't be able to come up with the cash is just asinine.

They could probably come up with $150 million for 10% of the team just by asking Rudy, KAT and Mike C to invest, another 10% to KG should be a no brainer.... it's pretty easy when you know a lot of millionaires.

You still have to come up with a lot of cold hard cash to secure the actual loan for the next 600 million.
Turning tens of millions of paper wealth liquid isn't like just flipping a switch, they are selling off real assets to do that.
And they can only sell off so much of their share of the team and still retain majority control.

Say they sell off 20% to carlyle, for 460 million, that they paid 300 million for. That's a 160 million profit.
That money is what they are going to use for interest payments on the initial purchase, and interest payments for any operating losses going forward, before they have to start dipping into their own wealth further to continue funding the team.
It's also what they are likely to do with the final 20% they are eligible to purchase.
They also reportedly brought in a lot of investment on the initial 40% too, so how much they will be able to sell off and get to 50+%, who knows.
I'm also not thrilled with hedge funds potentially owning significant % of the team.

Taylor also did this constantly over the years, selling off stakes to fund operating losses.
But with his initial purchase price only being 94 million, his interest payments on the initial purchase were peanuts in comparison to what Arod and Lore's will be. And interest rates have gone up significantly since the initial purchase agreement, and are likely to continue to. 15 years of absurdly low interest rates had a lot to do with the explosion in the values of pro sports teams.
Operating losses were relatively painless to finance. That is all coming to an end.
This will have a significant impact on our future luxury tax situation.

Selling shares to current players is a bad take, and is never going to happen.
KG also sadly lost a significant part of the money he earned in his playing career due to bad investment.
It would be great if he was brought in as a minority shareholder, but it's not going to be any significant share.

[Klomp]

Last year there were flashes. This year, the defense has been there — the Wolves have the best defensive rating in the league. And that has led to wins.
But that doesn't mean Taylor wasn't ready to sell.
"No regrets at all,'' he said. "It's been a fun experience. The financial thing is out of this world; I never planned on that. Never thought it would happen. It will allow us to do a lot of things with the [Glen A. Taylor] Foundation. But I've done it long enough.''
The Taylors want to spend more time in Florida. He'll enjoy his final months as owner, then move on. The fact that the Wolves are ascendant only makes it sweeter.
"The last couple years we've been putting together a team that's very competitive,'' Taylor said. "Last year we finished strong. This year started strong. I feel good that we've left the team in a good place.''

https://www.startribune.com/minnesota-timberwolves-glen-taylor-target-center-best-record-losing-playoffs/600328609/

[Calinks]

Last year there were flashes. This year, the defense has been there — the Wolves have the best defensive rating in the league. And that has led to wins.
But that doesn't mean Taylor wasn't ready to sell.
"No regrets at all,'' he said. "It's been a fun experience. The financial thing is out of this world; I never planned on that. Never thought it would happen. It will allow us to do a lot of things with the [Glen A. Taylor] Foundation. But I've done it long enough.''
The Taylors want to spend more time in Florida. He'll enjoy his final months as owner, then move on. The fact that the Wolves are ascendant only makes it sweeter.
"The last couple years we've been putting together a team that's very competitive,'' Taylor said. "Last year we finished strong. This year started strong. I feel good that we've left the team in a good place.''

https://www.startribune.com/minnesota-timberwolves-glen-taylor-target-center-best-record-losing-playoffs/600328609/

Cool, didn't know he was excited for GTA 6 too, great move selling the team before it comes out so he and the wife will have more time to play it when it drops next year!

[minimus]

Former Google CEO Eric Schmidt is among those joining Alex Rodriguez and Marc Lore in the next round of their step-by-step purchase of the Minnesota Timberwolves, according to someone familiar with the negotiations.

https://www.sportico.com/business/team-sales/2023/eric-schmidt-timberwolves-arod-lore-1234761220/

I did not see any discussion related to these news. But I found interesting that ex CEO of Google wants to invest here. Any thoughts?

[winforlose]

Former Google CEO Eric Schmidt is among those joining Alex Rodriguez and Marc Lore in the next round of their step-by-step purchase of the Minnesota Timberwolves, according to someone familiar with the negotiations.

https://www.sportico.com/business/team-sales/2023/eric-schmidt-timberwolves-arod-lore-1234761220/

I did not see any discussion related to these news. But I found interesting that ex CEO of Google wants to invest here. Any thoughts?

When the Wilfs bought the Vikings they had minority owners. As far as I know this is pretty standard fair. It sounds like Lore and Arod didn’t have enough liquidity to make the purchase so they sought out a silent partner to pony up in the short term in exchange for a piece of the long term profits. As the article says the NBA is solid investment at the moment. I am a little troubled by the idea that Lore isn’t a billionaire, but that is speculation.

[shrink]

Former Google CEO Eric Schmidt is among those joining Alex Rodriguez and Marc Lore in the next round of their step-by-step purchase of the Minnesota Timberwolves, according to someone familiar with the negotiations.

https://www.sportico.com/business/team-sales/2023/eric-schmidt-timberwolves-arod-lore-1234761220/

I did not see any discussion related to these news. But I found interesting that ex CEO of Google wants to invest here. Any thoughts?

I think I remember whispers about bringing in a minority partner to come up with the cash. I thought they were selling ARod and Lore were selling a piece of the chunk they already bought.

I don’t know if the original deal locks in all future chunks on the original valuation, but if it did, anyone with cash would want to invest. The Wolves franchise increased in value nearly 47% in one year, (second only to the Thunder with all NBA franchise valuations rising)! If ARod and Lore are locked into buying each chunk at the original valuation ($1.7 bil), and it’s now $2.5 bil, of course people would want in, and it would help them reach the amounts of cash they needed to meet their obligations.

Edit: I saw three different current valuations in the three places I looked, but all were substantial increases from last year’s $1.5-$1.7.

[BlacJacMac]

Read on Twitter

[Guest84]

Read on Twitter

Nothing with the wolves can ever be smooth. Always a rollercoaster...

[TimberKat]

Read on Twitter

Nothing with the wolves can ever be smooth. Always a rollercoaster...

If we don't get new owners, I can't see Taylor willing to go over the tax line. Maybe pull in KG and certainly Eric Schmidt has the money and connection. Just a little too last minute for comfort.

[younggunsmn]

They aint got the money it looks like.

They were going to have an equity group make half of their last payment for them which was worth about a 20% stake.
And they either backed out or were red flagged by the league.

[MN7725]

looks like Wolves are headed for Rockets-Fertitta type ownership

[shrink]

If we don't get new owners, I can't see Taylor willing to go over the tax line. Maybe pull in KG and certainly Eric Schmidt has the money and connection. Just a little too last minute for comfort.

I’m really not that worried, for three reasons.

1. History. While Taylor gets labeled a cheapskate, he has echoed the same spending strategy of the majority of owners: he has said he’s willing to go over the lux for a contender. And in the past he has, and the Wolves have exceeded the lux four times (once just barely, and that could happen again this year). He seems cheap because the team has not been close to being a contender most years. In fact, the teams haven’t even had to be contenders .. the winning percentage for the four tax-paying seasons is only 50.4%!

This is coupled with the fact that expensive free agents don’t want to come here, so we can’t get someone worthwhile with extra spending anyway. And on top of that, MIN doesn’t pull in revenues to off-set spending. Last year, with a playoff team and an exciting young star, MIN still was $100 mil less in revenues than the average team. Taylor has gone out of his own pocket with three lux teams, and don’t forget - the reason we have max deals is because other owners were so scared by the giant contract he gave Garnett.

2. Future. Even if ARod and Lore don’t complete buying controlling ownership, Taylor is likely to sell to someone else, and in the next few years. In fact, he is unlikely to be paying Towns in the final years of his deal. If anybody has sold a home, you know you get the highest price by sinking in some money to make it as attractive as possible to a potential seller. Taylor finally has a contender, and according to Forbes, in an NBA where all franchise values increased, MIN experienced the #2 highest jump (behind OKC). Now is the time to spend, (probably asking for a new arena) and continue to increase the value of the franchise.

3. And finally, I think with longterm contracts and extensions already in place, to move our payroll from over the second apron to under the tax line would be extremely difficult due toCBA restrictions. We have multiple big contracts locked up - we don’t have expensive players about to become free agents for us to simply let walk. To make such a drastic drop in payroll, Tim Connelly would need to make trades where we take pennies on the dollar. I just can’t see that happening.

[m2002brian]

Regardless of what news reports are saying.
This stinks to high heaven of Glen Taylor slimy shenanigans.

Has he duped Lore and ARod into a minority ownership position? If this “falls through” is he going to “decide” he isn’t going to sell the 40% anymore?

Something tells me he’s a little bitter about the value of the team going up as fast as it has and not getting in on it.

**Disclaimer**
Thanks Glen for keeping the team in MN
But you seem like the kind of guy to smile in your face then **** you in the ass.