Rodriguez and Marc Lore had already purchased between 20 and 40 percent of the Timberwolves and the WNBA’s Minnesota Lynx. Three months ago, the two exercised their option to buy another 40 percent from owner Glen Taylor, but never completed the sale after they lost financing.
Now, the 82-year-old Taylor said in a statement that his teams are “no longer for sale.”
“Under terms of the purchase agreement, the closing was required to occur within 90 days following the exercise notice issued by Lore and Rodriguez. That 90-day period expired on March 27, 2024,” a statement on the team’s website read. “Under certain circumstances, the buyer could have been entitled to a limited extension. However, those circumstances did not occur.
“I will continue to work with Marc, Alex and the rest of the ownership group to ensure our teams have the necessary resources to compete at the highest levels on and off the court,” Taylor said. “The Timberwolves and Lynx are no longer for sale.”
It’s not clear why Rodriguez and Lore lost the backing of the Carlyle Group, a private equity firm who was reportedly going to invest $300 million. The NBA claims it “did not deny Carlyle’s proposed investment,” but there may have been issues with the structure of the deal. League rules limit private equity firms to owning a 20 percent share in any team, with total ownership by firms limited to 30 percent.
In addition, league rules state that Rodriguez and Lore each would have to personally come up with 15 percent of the purchase price, or roughly $200 million. It’s uncertain that Rodriguez can still do that without Jenny from the block.
In 2022, the New York Post reported that after Rodriguez broke up with Jennifer Lopez, his ability to come up with the cash declined, not to mention his ability to wow investors with J-Lo’s star power. Rodriguez and Lopez made an unsuccessful bid for the New York Mets in 2020, and the Timberwolves bid was likely imagined as a couples investment originally.
Even in the original down payment for the team, Rodriguez reportedly only paid for a seven percent share, with Lore covering 13 percent. A-Rod has an extensive portfolio of real estate properties, but not necessarily a lot of liquid capital, so his partner had to cover for him.
The deal going bust presents an opportunity for Taylor to cash in further. The previous sale valued the Timberwolves and Lynx at $1.5 billion, but NBA franchise values have risen dramatically. The Phoenix Suns sold for $4 billion, while Mark Cuban sold a majority interest in the Dallas Mavericks at a valuation of $3.5 billion.
By missing the deadline, Lore and Rodriguez gave Taylor the chance to sell the team again, likely at a much higher price. Meanwhile the duo is left with a worst-case scenario: A massive investment in the team, but no power to make decisions.
Lopez’s love may not cost a thing, but losing that love may have cost A-Rod the Timberwolves.
