MINNEAPOLIS (AP) — The $1.5 billion sale of the Minnesota Timberwolves from Glen Taylor to an investment group led by e-commerce entrepreneur Marc Lore and former baseball star Alex Rodriguez gained NBA approval on Tuesday, finalizing a complex and contentious process more than four years after the deal was reached.
The ownership transfer that Taylor tried to stop last year received an unanimous vote from the league’s board of governors that comprises the 30 team owners. The deal, which is expected to close this week nearly 51 months and more than 1,500 days after the initial agreement, includes the four-time WNBA champion Minnesota Lynx.
The Timberwolves are planning an introductory news conference for Lore and Rodriguez next month in Las Vegas during the NBA Summer League. Lore and Rodriguez will serve as co-chairmen on the board, with Lore as Timberwolves governor and Rodriguez as alternate governor, the league announced. For the Lynx, Rodriguez will serve as governor and Lore as alternate governor.
“We fully recognize the great responsibility that comes with serving as stewards of these exceptional franchises,” Lore said in a statement distributed by the organization. “We are committed to building an organization that sets the standard for excellence, is universally admired, and rooted in pride that spans generations.”
The business partners and close friends who met during the pandemic over a Zoom call have said they’re committed to keeping the teams in Minnesota.
“I’ve dedicated my entire life to the world of sports, not just as a game, but as a powerful force that unites people, uplifts communities, and changes lives,” Rodriguez said. “I’m incredibly honored and energized to roll up my sleeves and get to work. I know what it takes to be a champion, and I’m ready to bring that same commitment and drive to create a winning culture in Minnesota.”
The 83-year-old Taylor, who grew up on a Minnesota dairy farm and built a fortune with a business that specialized in printing wedding invitations, bought the Timberwolves for about $88 million in 1994 to prevent them from moving after a deal between the original owners and a group in New Orleans was nixed by the NBA.
After Lore and Rodriguez were outbid for the New York Mets by hedge fund manager Steve Cohen, they turned their attention to basketball after learning Taylor was exploring a sale. The deal was arranged in phases to allow Taylor to stay as a mentor of sorts.
The value of the franchise has more than doubled since that April 10, 2021, agreement due largely to soaring NBA revenues. Forbes has estimated the Timberwolves are worth $3.1 billion. Sportico’s most recent calculations pegged the club at $3.29 billion. Both publications put them as the third-lowest in the league, playing in a midsized market in a 35-year-old arena.
The Lynx have been valued between $230 million (Forbes) and $240 million ( Sportico ), in the bottom half of the league that’s in the midst of an expansion to 16 teams by 2028.
Taylor announced on March 28, 2024, he was exercising his right to back out of the sale because Lore and Rodriguez missed the deadline to purchase a third portion of the club that would have given their group about an 80% stake.
Lore and Rodriguez were blindsided by the decision and defended their integrity, accusing Taylor of having seller’s remorse. They blamed the payment delay on the slow pace of the league’s approval process and said they submitted paperwork six days ahead of the deadline.
The dispute first went to mediation and then to arbitration, where a three-panel judge ruled in favor of Lore and Rodriguez. Their group, which includes former New York City mayor Michael Bloomberg and former Google executive Eric Schmidt, has been poised to buy Taylor and his partners completely out rather than the leave him with a 20% stake from the initial agreement.
Taylor decided in April not to appeal the arbitration decision, near the end of his 31st season controlling the team. The Timberwolves saved him the best for last, reaching the Western Conference finals for a second straight year before losing to NBA champion Oklahoma City.
Even after making the playoffs in each of Taylor’s final four seasons, the Timberwolves have the worst all-time regular season record — 1,196-1,680, a .416 winning percentage — of the league’s current 30 franchises. They’re 39-55 in playoff games, with a first-round elimination in 10 of the 13 times they qualified.
Taylor and his wife, Becky, published a farewell message in Monday’s print edition of the Minnesota Star Tribune, which Taylor bought in 2014. The Timberwolves also posted it on the front of their website.
“This marks the end of an extraordinary chapter in our lives — one filled with purpose, pride, and a deep connection. When we kept the Timberwolves from moving to New Orleans in 1994, we did so with the hope of building something that could unite people across Minnesota and beyond. And when we added the Lynx in 1998, it was driven by our belief in supporting women and fully embracing the diversity and promise of the WNBA,” the Taylors said, thanking their limited partners, the players, the staff, the community and the fans for their support.
“Though we are stepping away as owners, our love for this organization and this community remains as strong as ever. We will always be fans, cheering from our seats, celebrating your triumphs, and believing in what comes next. It has been the honor of our lives.”
Lore, whose net worth is estimated by Forbes at $2.9 billion, is the CEO of the New York-based meal delivery service Wonder. He has founded e-commerce companies that were previously acquired by retail giants Walmart and Amazon.
Rodriguez, a 14-time All-Star who hit 696 career home runs but has fallen short of Hall of Fame induction due to his admitted use of performance-enhancing drugs, built a business career around real estate investment and development. He made more than $450 million in salaries over 22 years in the major leagues.
Read the full article here
