NBA
Why did Alex Rodriguez’s purchase of the Minnesota Timberwolves fall through?
The chairman of Taylor Sports Group, Inc, Glen Taylor, confirmed this on Thursday, March 28 that the sell has fallen through.
An agreement for a majority stake of the Minnesota Timberwolves and Lynx franchises to be sold to Alex Rodriguez and Marc Lore has fallen through, leaving fans and basketball enthusiasts surprised. Here’s a breakdown of why this deal hit a dead end.
What was the Initial Agreement?
In July 2021, the NBA formally approved the first 20 percent increment of a $1.5 billion sale of the franchises to Lore and Rodriguez. Per the terms of the agreement, Lore and Rodriguez had the right to purchase an additional 20 percent share of the franchises in 2022 and an additional 40 percent share in 2023, which would make the duo the franchises’ controlling owners.
Under the terms of the purchase agreement, the closing was required to occur within 90 days following the exercise notice issued by Lore and Rodriguez. Unfortunately, that 90-day period expired on March 27, 2024. While there were provisions for a limited extension under certain circumstances, those circumstances did not occur.
Eight days before the expiration, The Athletic’s Shams Charania reported that Rodriguez and Lore “submitted signed financial documentation to the NBA to complete acquisition of majority controlling ownership” of the two franchises. Given these earlier developments, Taylor Sports Group, Inc chairman Glen Taylor’s official statement came as an unexpected end to the saga of Rodriguez and Lore’s journey to becoming controlling owners of the Timberwolves and Lynx. It seem there will be no free tournaments for the ex Yankees hitter.
What is the Timberwolves Franchise Value?
The Timberwolves are currently valued at $2.5 billion, according to a Forbes valuation from October 2023. While Minnesota’s franchise value ranks 29th out of the league’s 30 teams, it has increased by $1 billion since the sale was first approved in the summer of 2021. Glen Taylor, a Minnesota native, originally purchased the Timberwolves for $88 million in 1994, and the Lynx franchise was founded in 1999.