Will A-Rod Own The Timberwolves?

Buying a sports team can get tricky.

If you don’t believe me, look at the transaction unfolding in Minnesota.

In 2021, current owner Glen Taylor agreed to sell the Timberwolves and Lynx to MLB legend Alex Rodriguez and entrepreneur Marc Lore as part of a multi-year, multi-tranche deal.

Three years later, Taylor tried to call off the deal.

Earlier this week, a three-person arbitration panel ruled in favor of Rodriguez and Lore, paving the way for the pair to take over as owners of the Minnesota teams.

The duo isn’t officially confirmed as new owners, but the panel’s ruling was a significant win as they get closer to becoming majority owners.

Let’s dive in:

How We Got Here

A timeline of important events leading up to the arbitration decision:

March 1995: Taylor buys the Timberwolves for roughly $88.5M

April 1998: Lynx announced as the next WNBA expansion team for the 1999 season

2000-2018: The Timberwolves lose in the 2004 Western Conference Finals and miss the playoffs for the next 14 seasons. Meanwhile, the Lynx win the WNBA Finals in 2011, ‘13, ‘15, and ‘17.

April 2021: Taylor enters into a purchasing agreement with Lore and Rodriguez. The four-year deal allows the pair to buy both Minnesota basketball teams in four-part tranches: 20%, 20%, 40% and 20%.

March 2024: Taylor attempts to call off the deal, claiming breach of contract and that Rodriguez and Lore violated the terms of the agreement by not completing the transaction on time. In response, Rodriguez and Lore argued the deal entitles them to an additional 90 days to obtain NBA approval.

May 2024: The parties engaged in mediation over the dispute. The mediation efforts were ultimately unsuccessful.

November 2024: Arbitration hearings begin over whether Rodriguez and Lore violated the terms of the purchase agreement

February 2025: In a 2-1 decision, an arbitration panel rules in favor of Rodriguez and Lore, paving the way for the duo to complete the purchase of the Minnesota Timberwolves and Lynx

What’s next

First, an important clarification: the arbitration panel decision did not grant Rodriguez and Lore ownership of the Minnesota teams. Rather, the ruling endorsed the pair’s interpretation that the purchase agreement timeline had not expired — allowing the two to obtain NBA approval and complete their acquisition.

The duo still has a few more significant steps.

Final payments

Rodriguez and Lore still owe Taylor approximately $942M to acquire the outstanding ~60% stake. The money was put aside and has been sitting in an escrow account held by JP Morgan since last October.

Concerns over financing the purchase have risen throughout the acquisition process. However, money no longer seems to be an issue: the group backing the buyers includes Mike Bloomberg (worth $104.7B), Eric Schmidt (worth $25.1B), and private equity organization Blue Owl.

NBA approval

The pair also needs approval from at least 23 of the 30 NBA owners, or 75%, to vote in favor of the sale. Lore and Rodriguez were previously approved as minority owners in 2021, but the majority owner approval process is more complex.

Specifically, the process includes an in-depth examination of financials, investors, and backgrounds. The league will likely wait for Taylor to accept the panel’s decision before holding a formal vote.

What does the NBA think?

Speaking of the NBA, what does Adam Silver make of all of this? Notably, the NBA was subpoenaed in the lengthy ownership battle but has kept a healthy distance from the conflict.