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In recent days, worries had risen around Minnesota Timberwolves territory, that the ongoing purchase of the organization, by a new ownership group headlined by Marc Lore and Alex Rodriguez, was in flux. They had reportedly lost a $300 million equity group investor and still owed Glen Taylor $600 million total… all due by March 27.
Marc Lore, A-Rod Submit Paperwork to take majority ownership of Minnesota Timberwolves
But on Wednesday, news is breaking (via Shams – The Athletic) that Lore and A-Rod have “submitted signed financial documentation to NBA to complete acquisition of majority controlling ownership” of both the Timberwolves and Lynx franchises.
Just in: Marc Lore and Alex Rodriguez have submitted signed financial documentation to NBA to complete acquisition of majority controlling ownership of the Minnesota Timberwolves and Lynx from Glen Taylor, multiple sources with direct knowledge told me and @JonKrawczynski. pic.twitter.com/yKc9WnLDLY
— Shams Charania (@ShamsCharania) March 20, 2024
What does this mean? At first, it didn’t mean the purchase was over the finish line just yet. And technically, it still doesn’t. Because not only were their concerns over whether or not A-Rod and Lore would reach the finish line at all, there were serious concerns that, even if they did, the NBA might deny the sale.
Multiple reports in recent weeks (here and here) note the league’s concerns over where Lore and Rodriguez are financially. That once the NBA financial department opens up their books, which they will do prior to finalizing the purchase, that they won’t find the cash-flow, liquidity and/or resources they hope to find.
The NBA will have a final call on approving the sale even if the Lore and Rodriguez group meet their final payment obligation. That might not be a slam dunk. If the league isn’t convinced the new owners can meet operating obligations with their finances, approval won’t be granted.
David Shama – Shama Sports Headliners
Obviously, Marc Lore is a smart businessman and this isn’t his first time purchasing a company. Thus, I found it difficult to believe this paperwork would be submitted if he and A-Rod didn’t think the purchase would be approved.
About 20 minutes later, the next twist came and everything made more sense. Lore has brought on a new investment partner, ‘Dyal Capital Partners’, a group that is apparently pre-approved by the NBA. We’ll see if this is what Lore and A-Rod needed to get this thing done. They clearly believe so.
Dyal Capital Partners has joined as a pre-approved investor in the Lore-Rodriguez group, giving them the final financial backing necessary to complete the transaction, sources said. Lore and Rodriguez are ready to close the sale as soon as NBA approves. https://t.co/ho1PdsqDfb
— Shams Charania (@ShamsCharania) March 20, 2024
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