Did breakup with J-Lo cost Alex Rodriguez the Timberwolves?
Rodriguez and Marc Lore had already bought between 20 and 40 % of the Timberwolves and the WNBA’s Minnesota Lynx. Three months in the past, the 2 exercised their choice to purchase one other 40 % from proprietor Glen Taylor, however by no means accomplished the sale after they lost financing.
Now, the 82-year-old Taylor stated in a statement that his groups are “not on the market.”
“Beneath phrases of the acquisition settlement, the closing was required to happen inside 90 days following the train discover issued by Lore and Rodriguez. That 90-day interval expired on March 27, 2024,” a press release on the workforce’s web site learn. “Beneath sure circumstances, the client might have been entitled to a restricted extension. Nevertheless, these circumstances didn’t happen.
“I’ll proceed to work with Marc, Alex and the remainder of the possession group to make sure our groups have the required sources to compete on the highest ranges on and off the court docket,” Taylor stated. “The Timberwolves and Lynx are not on the market.”
It is not clear why Rodriguez and Lore misplaced the backing of the Carlyle Group, a personal fairness agency who was reportedly going to take a position $300 million. The NBA claims it “didn’t deny Carlyle’s proposed funding,” however there could have been points with the construction of the deal. League guidelines limit private equity firms to proudly owning a 20 % share in any workforce, with complete possession by corporations restricted to 30 %.
As well as, league guidelines state that Rodriguez and Lore every must personally provide you with 15 % of the acquisition worth, or roughly $200 million. It is unsure that Rodriguez can nonetheless do this with out Jenny from the block.
In 2022, the New York Publish reported that after Rodriguez broke up with Jennifer Lopez, his potential to provide you with the money declined, to not point out his potential to wow traders with J-Lo’s star energy. Rodriguez and Lopez made an unsuccessful bid for the New York Mets in 2020, and the Timberwolves bid was doubtless imagined as a {couples} funding initially.
Even within the unique down cost for the workforce, Rodriguez reportedly solely paid for a seven % share, with Lore protecting 13 %. A-Rod has an in depth portfolio of actual property properties, however not essentially numerous liquid capital, so his companion needed to cowl for him.
The deal going bust presents a chance for Taylor to money in additional. The earlier sale valued the Timberwolves and Lynx at $1.5 billion, however NBA franchise values have risen dramatically. The Phoenix Suns offered for $4 billion, whereas Mark Cuban sold a majority interest within the Dallas Mavericks at a valuation of $3.5 billion.
By lacking the deadline, Lore and Rodriguez gave Taylor the prospect to promote the workforce once more, doubtless at a a lot increased worth. In the meantime the duo is left with a worst-case state of affairs: An enormous funding within the workforce, however no energy to make choices.
Lopez’s love could not value a factor, however dropping that love could have value A-Rod the Timberwolves.