Panel rules for Lore, Rodriguez in sale of Timberwolves

In a split decision announced Monday, a three-person arbitration panel has sided with prospective Minnesota Timberwolves and Lynx owners Marc Lore and Alex Rodriguez in a sales contract dispute against current owner Glen Taylor, allowing them to continue the process to become the majority ownership group.

The ruling sets up a high-stakes vote among fellow NBA owners to decide control of the franchise. The board of governors vote is expected to be timed with the close of sale and final payments.

The arbitrators determined Taylor had violated terms of the sales agreement when he announced last March 28 that Lore and Rodriguez had missed a deadline for a $600 million payment that would’ve secured an 80% majority control of the teams. Taylor had agreed to sell to Lore and Rodriguez in 2021 for a $1.5 billion valuation with the purchase coming in three steps.

Lore and Rodriguez disputed Taylor’s interpretation of the contract and believed they had the right to a 90-day extension, and the matter went to arbitration, which took place in a weeklong hearing in November. The investors had already bought about 36% of the team for more than $500 million in two previous transactions.

In documents since submitted to the NBA league office, Lore and Rodriguez showed they have raised an additional $950 million and placed it in an escrow account and are ready to finish the purchase and operate the teams, sources told ESPN. To help fund the deal, they have added billionaire former New York City mayor Michael Bloomberg and former Google CEO Eric Schmidt as partners, among others.

However, no team can change hands until at least 23 of the 30 current governors approve a transfer. Usually a formality, this vital step would require the NBA’s board of governors to weigh the unprecedented question of whether to approve a sale if the incumbent owner is against it.

Knowing this showdown was possibly coming, Lore and Rodriguez have met with dozens of team owners in recent months in an attempt to win support in the event of a vote, sources told ESPN. Taylor, meanwhile, has been a majority owner since 1994, has a long-standing relationship with NBA commissioner Adam Silver and is a past chairman of the board of governors.

“We are extremely pleased with today’s decision,” Lore and Rodriguez said in a statement. “We look forward to working with the NBA to complete the approval process and close this transaction so that we can turn our attention to winning championships in Minnesota for our incredible fans and the Twin Cities community.”

In his statement, Taylor did not make it clear whether he would continue to fight a sale.

“[Wife] Becky and I were disappointed by this 2-1 decision by the panel,” Taylor said. “We will review this decision thoroughly prior to making any further comment.”

The $1.5 billion price that Taylor agreed to sell the team for in 2021 would now be considered below market value. Four teams have changed controlling shares and reset the market since then.

In 2023, the Phoenix Suns sold for $4 billion, and in 2024 the Dallas Mavericks sold for $3.5 billion. Closer in market size to the Wolves, the Charlotte Hornets sold in 2023 for $3 billion, and a co-controlling share of the Milwaukee Bucks sold in 2023 for a $3.5 billion valuation.

Taylor has twice before put the Wolves up for sale only to change his mind and withdraw them from the market. When announcing he was pulling his team off the market last year, Taylor didn’t cite the valuation changes but instead the positive direction of the team.

“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 told The Associated Press. “I don’t need the money, so I think I’ll just keep running it and enjoy it.”