Glen Taylor To Cede Control Of Timberwolves To Lore, Rodriguez

Longtime Timberwolves owner Glen Taylor has decided not to appeal an arbitration ruling in favor of Marc Lore and Alex Rodriguez and will sell his controlling interest in the franchise to the minority stakeholders, reports Shams Charania of ESPN.

When Lore and Rodriguez reached an agreement in the spring of 2021 to buy the Timberwolves from Taylor, the succession plan called for the new owners to initially come aboard as minority stakeholders with a 20% share of the franchise.

The duo then had until the end of 2022 to exercise an option to purchase approximately another 20% and had until the end of 2023 to exercise their option for an additional 40% stake, bringing their total share to 80% in 2024 — that plan would have made them the controlling owners a year ago.

However, the process hit a snag in March 2024 when Taylor announced he would be retaining control of the Timberwolves, citing a breach of contract and a failure to meet a payment deadline. Lore and Rodriguez disputed that characterization, stating that they had the funds necessary to become majority owners but were awaiting NBA approval and should have been entitled to an extension.

After mediation failed to resolve the dispute between the two sides, it advanced to an arbitration hearing. A three-person arbitration panel voted in favor of Lore and Rodriguez in February, and Taylor has been weighing his options since then.

Rather than continuing his fight to retain the franchise, Taylor has agreed to sell 100% ownership to the Lore/Rodriguez group at the $1.5 billion valuation that was initially agreed upon in 2021, according to Charania, who says that decision was made after the two sides held discussions over the past six weeks.

The franchise’s value has increased substantially since that deal was made (as of December, Sportico pegged it at $3.29 billion), which was believed to be a major factor in Taylor’s efforts to try to halt the sale. Still, Taylor will ultimately come out way ahead in the transaction after having reportedly paid in the neighborhood of $88-94MM to buy the Timberwolves in 1994.

There are still some final hurdles to clear before the ownership transfer is officially finalized. Most notably, the NBA’s Board of Governors will need to approve the new ownership group, which includes other investors – such as Michael Bloomberg – in addition to Lore and Rodriguez. However, there’s no reason to believe that the league will stand in the way of the sale.

Once the transfer is complete, Lore is reportedly expected to serve as the Timberwolves’ primary governor. One February report suggested that former Minnesota star Kevin Garnett – who had a long-standing feud with Taylor – will likely be hired to a position in the team’s front office when Lore and Rodriguez officially take over.