The plan for Marc Lore and Alex Rodriguez to succeed Glen Taylor as the controlling owners of the Timberwolves continues to move forward, according to Jon Krawczynski and Shams Charania of The Athletic, who report that Lore and Rodriguez have exercised their option to buy another 20% of the team.
When Lore and Rodriguez reached an agreement with Taylor in the spring of 2021, the succession plan called for the new owners to initially come aboard as minority stakeholders with a 20% share of the franchise. The duo had until the end of 2022 to exercise an option to purchase another 20%, bringing their total stake in the club to 40%.
Now that Lore and A-Rod have exercised that option, they’ll have until March 15 to formally close on their second 20%, according to Krawczynski and Charania.
The final stage of the ownership change would see Lore and A-Rod exercise an option to buy another 40% of the team by December 31, 2023. Assuming that happens, the duo would then control 80% of the Timberwolves. Sources tell The Athletic that the plan is for Taylor to retain a 20% stake after giving up majority control of the team.
A report in August raised questions about whether Rodriguez had the liquidity necessary to contribute his half of the purchasing price and suggested that the deal could be in jeopardy, but it appears it’s still moving forward as planned.
As Krawczynski and Charania point out, Taylor would have the right to nix the succession plan and retain Lore and Rodriguez as limited shareholders if they miss either of the next two payments. However, the buyers have expressed confidence that those payments remain on track to be completed, per The Athletic’s report.
According to Krawczynski and Charania, Lore and Rodriguez have recruited other investors to join their Purple Buyers Holdings LLC, and should be in good position to bring in more if they need to do so. The recent $4 billion valuation the Suns received as part of their sale to Mat Ishbia was good news for Lore and A-Rod, since the Wolves – who are selling at a $1.5 billion valuation – look like a bargain by comparison.
Once they control 40% of the franchise, Lore and A-Rod will have invested $600MM in the Wolves, with another $600MM to come. The duo has already been involved in front office and personnel decisions in preparation of assuming majority control in another year.