Report: Alex Rodriguez, Lore Group ‘Confident’ It Will Win Wolves Sale Arbitration

Zach BacharContributor ISeptember 28, 2024

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The Minnesota Timberwolves’ prospective ownership group led by Marc Lore and Alex Rodriguez is optimistic about winning the dispute with team owner Glen Taylor that is set to play out in arbitration, according to ESPN’s Brian Windhorst.

“After the discovery process over the summer, Lore’s group has grown confident it will win and has gotten all of its finances in order, sources said,” Windhorst wrote. “They plan to arrive at the proceeding with more than $900 million in escrow with the backing of billionaires Eric Schmidt, the former CEO of Google, and former New York City Mayor Michael Bloomberg.”

Per Windhorst, the group will also show “more than $200 million” in working capital to prove that they can complete the purchase of the last 60 percent of the $1.5 billion sale.

Shams Charania and Jon Krawczynski of The Athletic revealed in June that the group led by Rodriguez and Lore currently owns “nearly 40 percent” of the Timberwolves and Minnesota Lynx. The group reportedly had a previous agreement with Taylor on a “multi-step” purchase process at a $1.5 billion valuation that started in 2021.

However, Taylor announced that he would no longer be selling his controlling stake in the team in March (via ESPN’s Ramona Shelburne). He alleged that Lore and Rodriguez failed to meet certain contractual deadlines and obligations of the sale process.

This included an inability to land the final $600 million they needed in funding to secure the majority purchase by the deadline (h/t Charania and Krawczynski). Lore and Rodriguez claimed that they submitted commitment letters for the $600 million and pointed to language in the contract that they were eligible for a 90-day extension, which ultimately led to arbitration.

Even if Lore and Rodriguez can show that Taylor broke the terms of the agreement in March, the sale still isn’t guaranteed. Windhorst noted on Saturday that the other 29 team owners will vote on the sale, which would require Taylor’s partners since 1994 to vote against him. Rodriguez and Lore have been planning for the scenario, meeting with several owners throughout the past year.

“It seems like there are lawsuits on the horizon no matter what,” Windhorst wrote.

Arbitration will begin on Nov. 4.