Alex Rodriguez and Marc Lore are finally set to take over the Minnesota Timberwolves.
Arbitrators have ruled in favor of Rodriguez and Lore over current owner Glen Taylor in their long, tumultuous fight over the future of that franchise and the WNBA’s Minnesota Lynx on Monday, the two men announced.
The two will become the team’s owners after the NBA’s board of governors’ approval. It’s unclear when Rodriguez and Lore will officially take controlling ownership of the franchises.
“We are extremely pleased with today’s decision,” the two men said in a statement. “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.”
Rodriguez and Lore agreed to purchase the Timberwolves and Lynx from Taylor for $1.5 billion in 2021. They purchased a 20% stake initially, and then had three future options that would have given them full control of the teams in subsequent years. They reached 40% ownership, and then were set to jump up to 80% last year before Taylor suddenly announced that the team was no longer for sale and that he was going to keep controlling interest of the franchises.
Taylor claimed that Rodriguez and Lore missed a deadline, which allowed him to back out of the deal. Rodriguez and Lore described that announcement as a “nuclear bomb” that took them completely by surprise. They said they felt that Taylor wanted to back out because the team has improved in recent years, and because the Phoenix Suns were sold for about $4 billion a year after they struck their deal.
“It’s just bad faith that you have a deal and a contract, and then because you’re able to get more money, you just decide I don’t want the contract anymore,” Lore said last year, via the Minneapolis Star Tribune. “That’s just bad faith. It’s not being a good person, a good partner, a good human. You just don’t do that. It’s sort of like honor. It’s honor a little bit. You made a deal and then you honor it because you have integrity.”
The two sides have been in arbitration ever since.
Taylor first purchased the Timberwolves for $94 million in 1994, and he purchased the Lynx five years later.
“Becky and I were disappointed by this 2-1 decision from the panel,” Taylor said in a statement. “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.”
Now that arbitrators have ruled for Lore and Rodriguez, Taylor is contractually obligated to sell them the controlling share of the teams at the initial $1.5 billion valuation. Once Lore and Rodriguez receive at least 23 of the 30 owners’ approval, they will receive controlling ownership of the franchise. It is unclear if Lore and Rodriguez will attempt to try and buy Taylor and his partners out completely.
The Timberwolves were valued at $3.1 billion by Forbes last fall. While that is up by 24% year-over-year, they are the third-least-valuable team in the league. Only the New Orleans Pelicans and Memphis Grizzlies are worth less.
The Timberwolves currently hold a 30-23 record this season heading into Monday night’s game against the Cleveland Cavaliers. The Lynx, who reached the WNBA Finals last season, hold the No. 11 overall pick in the draft later this spring.
