MINNEAPOLIS — The ownership change of the Minnesota Timberwolves will proceed as planned, following a decision by a three-member arbitration panel which ruled 2-1 that Glen Taylor, the team’s current controlling owner, must hand over ownership to partners Marc Lore and Alex Rodriguez. This ruling is a key development in the final phase of a $1.5 billion sales agreement that was structured nearly four years ago, granting Lore and Rodriguez a majority stake in the team.
On Monday, the binding decision provided Lore and Rodriguez, who are both prominent figures in the business and sports worlds, a 90-day period to complete the acquisition. However, the deal must receive the endorsement from the NBA’s board of governors, requiring a favorable vote from at least 23 of the league’s 30 team owners. In a joint statement, Lore and Rodriguez expressed their eagerness to work with the NBA and complete the necessary approval process. They look forward to focusing on bringing championships to Minnesota for their devoted fan base and the broader Twin Cities community.
Glen Taylor, who is 83 and has a history tied to Minnesota’s farming and printing industries, originally purchased the Timberwolves in 1994 for $88 million, aiming to keep the franchise from relocating out of New Orleans. Taylor and his wife, Becky, expressed their disappointment in the arbitration ruling, stating that they would thoroughly review the decision before making further comments, while appreciating the support from players, staff, and loyal fans.
During a pregame news conference held in Cleveland, Timberwolves head coach Chris Finch commented on the situation, noting his positive relationships with all three ownership figures. He expressed gratitude for their support and emphasized that the recent ownership dispute has not impacted the team’s performance on the court. Finch remained optimistic about the resolution, considering it beneficial for the franchise overall.
The ownership transition has been contentious, particularly after Taylor declared in March that he would back out of the deal, alleging that Lore and Rodriguez failed to meet critical payment deadlines and other process timelines. Lore and Rodriguez contested this claim, asserting they were blindsided by Taylor’s withdrawal and maintained that delays were primarily due to a slow approval process from the league. They indicated that they submitted the necessary financial paperwork ahead of the deadline.
Lore also assured that he possesses substantial financial resources to complete the purchase, stating he is in a stronger financial position now compared to when the agreement was first reached. Following Taylor’s announcement, he revealed his readiness to make significant investments aimed at securing a championship for the Timberwolves. In a recent interview, he noted having sufficient liquid assets available to fully buy Taylor out and claim complete ownership of the franchise.
Adding to their financial backing, Lore and Rodriguez have brought on Michael Bloomberg, the former mayor of New York City and a media tycoon, to bolster their investment team. Reports indicate that they have roughly $940 million ready to facilitate the completion of their purchase, aiming to exceed their current 36% ownership stake. Taylor previously held 60% of the team, with limited partners owning the remaining 4%.
Taylor’s original sales agreement featured an extended transition plan allowing him to mentor Lore and Rodriguez as they adapt to the franchise’s management and operations. However, NBA Commissioner Adam Silver later cautioned against such arrangements, given the complications that arose during this process.
The Timberwolves are currently valued at approximately $3.1 billion, as per recent evaluations, more than double the amount from the initial agreement, although this still places them at 28th in the league rankings. They play at Target Center, a 34-year-old arena they share with the WNBA’s Minnesota Lynx, which is owned by the city of Minneapolis.
Efforts to mediate the dispute earlier in May did not yield an agreement, leading to the arbitration that involved each side selecting a representative with no previous ties to them and a neutral arbitrator appointed by the chief judge of Hennepin County District Court. The arbitration panel convened in November, culminating in the recent ruling that now propels Lore and Rodriguez toward finalizing their ownership ambitions with the Timberwolves.
