Former baseball star Alex Rodriguez and entrepreneur Marc Lore have hit a roadblock in their bid to claim majority ownership of the Minnesota Timberwolves. The Carlyle Group, which was set to provide the financial backing for the final installment of the purchase, has pulled out of the deal according to current owner Glen Taylor. This unexpected development has left Rodriguez and Lore scrambling to find alternative ways to raise the necessary funds by the looming deadline of March 27.
The purchase of the Timberwolves by Lore and Rodriguez was initially structured in installments, with the duo buying 20% of the franchise at a valuation of $1.5 billion in two separate transactions. This was followed by an additional purchase of 40% earlier this year, bringing them to the brink of majority ownership. However, the sudden withdrawal of the Carlyle Group’s financial support has thrown a wrench into their carefully laid plans, forcing them to seek new avenues for securing the remaining funds.
In light of Carlyle Group’s exit from the deal, Lore and Rodriguez have been engaged in discussions with other potential investors to make up for the shortfall. While it remains unclear why Carlyle Group decided to pull out of the agreement, reports suggest that the duo is exploring alternative financing options to salvage their ownership bid. The stakes are high as the clock ticks towards the deadline, leaving little room for error in their quest to secure the necessary capital.
Even if Lore and Rodriguez manage to cobble together the required funds for the final installment, their ownership transition is far from guaranteed. The NBA’s Board of Governors would need to approve the change of ownership, adding another layer of complexity to the already tumultuous situation. In addition to the Timberwolves, the duo’s acquisition of the controlling stake in the WNBA’s Minnesota Lynx is contingent on the successful completion of the ownership transition, further complicating the process.
The financial setback faced by Alex Rodriguez and Marc Lore underscores the precarious nature of high-stakes sports ownership deals. As they navigate the challenges posed by the Carlyle Group’s withdrawal and the looming deadline, Lore and Rodriguez must demonstrate resilience, resourcefulness, and strategic acumen to overcome these obstacles and realize their aspirations of owning the Minnesota Timberwolves. The coming days will be crucial in determining the fate of their ownership bid and shaping the future of professional basketball in Minnesota.