A three-person arbitration panel has ruled in favor of Marc Lore and Alex Rodriguez, prospective owners of the Minnesota Timberwolves and Lynx, in a sales contract dispute with current owner Glen Taylor. This decision may lead to a crucial vote among NBA owners to determine the future control of the franchise. Lore and Rodriguez have been actively engaging with team owners, seeking to secure support in anticipation of this potential vote.
Lore and Rodriguez have already acquired approximately 36% of the Timberwolves in two separate transactions totaling over $500 million. They now aim to purchase the remaining shares for a previously agreed price of $1.5 billion. However, recent sales of other teams have shifted market valuations, with the Charlotte Hornets selling for $3 billion and a co-controlling share of the Milwaukee Bucks fetching $3.5 billion in 2023. This market shift has made the Timberwolves' current sale price appear below market value.
"We are extremely pleased with today's decision," said Lore and Rodriguez.
Glen Taylor, who has owned the Timberwolves since 1994, initially agreed to sell the team to Lore and Rodriguez in 2021 for a valuation of $1.5 billion through a three-step transaction process. Despite previously putting the Wolves up for sale twice and withdrawing each time, Taylor has expressed his desire to continue his involvement with the team.
"(Wife) Becky and I were disappointed by this 2-1 decision by the panel," Taylor stated. "We've got a really good team, we've got a lot of good things going for us, I enjoy it and I'm healthy enough to do this."
Taylor's long-standing relationship with NBA Commissioner Adam Silver and his past role as chairman of the Board of Governors may influence the upcoming voting process. The NBA's Board of Governors must approve the sale, requiring at least 23 out of 30 current governors to consent to the transfer. While this approval is often seen as a formality, Taylor's opposition could present a challenge.
Lore and Rodriguez have demonstrated their commitment by raising an additional $950 million, which they have placed in an escrow account to facilitate the completion of the purchase. The arbitration panel's binding ruling has significantly bolstered their position in acquiring full ownership of the team.
The decision by the arbitration panel has created an environment ripe for deliberation among NBA owners. Lore and Rodriguez's proactive engagement with these stakeholders highlights their resolve to secure favorable outcomes during any potential vote.
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