MAY 27: Taylor has issued the following statement, per Ian Begley of SNY.tv (Twitter link): “I am aware of the story published by ESPN and the litigation that has been filed. As a policy, we do not comment on pending legal matters. I stand by my prior statements and commitment to keeping the Timberwolves and Lynx in Minnesota.”
MAY 26: The Timberwolves‘ second largest shareholder has filed a legal complaint related to the pending sale of the team, according to Adrian Wojnarowski of ESPN.
Meyer Orbach filed the document today in U.S. District Court in Minneapolis, alleging that Glen Taylor‘s agreement with Marc Lore and Alex Rodriguez violates the franchise’s partnership agreement. The complaint charges that Taylor didn’t honor “tag along rights” that would give minority investors the opportunity to sell their interests in the team before Taylor does.
Orbach owns more than 17% of the Wolves and the WNBA’s Minnesota Lynx. He claims the “tag along” provision should be exercised immediately once the sale is finalized.
Lore and Rodriguez reached an agreement on May 13 to buy the Wolves for $1.5 billion, but the purchase won’t be official until the new owners receive approval from the NBA’s Board of Governors.
Orbach’s complaint reveals that Taylor didn’t include a provision in the sale agreement that would prohibit Lore and Rodriguez from moving the franchise away from Minnesota, Wojnarowski adds. Taylor has spoken frequently of his commitment to the area and his desire for the team to remain in place once he no longer owns it.
Instead, the agreement has a clause that would require the new owners to “present to the Advisory Board for discussion” any plan to take the franchise out of the Twin Cities market, Wojnarowski states. However, there is no language in the deal that expressly prohibits a move.