Marc Lore and Alex Rodriguez have submitted the financial documentation necessary to complete the purchase of a majority stake in the Timberwolves, sources tell Shams Charania of The Athletic.
The move comes after a report this morning that sale proceedings were disrupted when the Carlyle Group chose to withdraw. Lore and Rodriguez were able to replace the firm with Dyal Capital Partners, according to Charania’s sources.
Lore and Rodriguez have a March 27 deadline to make the final payment for a 40% share of equity that will enable them to replace Glen Taylor as lead owners of the franchise as well as the WNBA’s Minnesota Lynx. Taylor will retain a minority share in both teams, while the group led by Lore and Rodriguez controls 80% of the franchises.
The NBA still must give its approval to the new ownership structure, and Charania says it’s uncertain how long that might take.
Since 2021, Lore and Rodriguez have been involved in the purchase of the Wolves for $1.5 billion on a multi-phase payment plan. They have made two payments so far — giving them a 20% stake each time, for a total of 40%.
They exercised their option in December for the final 40% of the purchase, Charania adds. That began a 90-day window to submit the required documents and commitment letters to finalize the deal.
The Carlyle Group had planned to commit $300MM before pulling out of the sale, per Charania’s sources. The private equity firm couldn’t adhere to some NBA requirements for investors, so there was a mutual agreement for Carlyle to withdraw.
Lore and Rodriguez were quickly able to reach out to Dyal to take the firm’s place, notes Charania, who adds that the company’s ownership group includes Google CEO Eric Schmidt.
Charania points out that Lore and Rodriguez have already made an impact on the Wolves during their time as minority owners and played a significant role in recruiting Tim Connelly away from Denver to serve as Minnesota’s president of basketball operations.
Good to see a cheat like Brons balco buddy A-Rod doing well for himself. My parents and grandparents lied when they use to tell me ‘cheats never prosper’.
You obviously haven’t been paying much attention to how a capitalist society works…
Cheat to win… Rules only matter to those who get caught… And a lot of the time aren’t designed to punish those who make it before getting caught…
Maybe I should clarify how sarcastic I can be. Thanks for the tip though.
You’re quoting the worst of capitalism, the era we’re in now. Millions hope to make things better as there are many admirable people working towards that goal.