The dream of former baseball star Alex Rodriguez and entrepreneur Marc Lore to claim majority ownership of the Minnesota Timberwolves has hit a significant snag. With just one payment remaining to secure ownership, the Carlyle Group, their financial backer, has pulled out, leaving Rodriguez and Lore scrambling to find an alternative means of funding. This unexpected turn of events was confirmed by current owner, Glen Taylor, who revealed that the Carlyle Group’s backing was no longer in place, jeopardizing the deal that has been in the works since April 2021.
Rodriguez and Lore had been on track to acquire the Timberwolves in installments, with the most recent step involving the purchase of an additional 40% stake in the franchise. However, the final payment, due on March 27, now hangs in the balance as they seek new avenues for financing. Taylor disclosed that an equity group, poised to inject $300 million into the deal, had either backed out or been rejected by the NBA, leading to the current predicament faced by Rodriguez and Lore. The lack of clarity surrounding the sudden withdrawal of the Carlyle Group has added to the uncertainty surrounding the future of the ownership transfer.
In response to the setback, Rodriguez and Lore have reportedly engaged in discussions with other potential investors to make up for the shortfall left by the Carlyle Group’s exit. While the NBA stated that it did not expressly deny Carlyle’s proposed investment, the need to secure the final payment remains a pressing concern for the prospective owners. Should they manage to arrange for the necessary funds, the transaction would still be subject to approval by the NBA’s Board of Governors before the ownership change can be formalized.
Apart from their bid for the Timberwolves, Rodriguez and Lore’s acquisition would also extend to the WNBA’s Minnesota Lynx, granting them a controlling interest in both franchises as part of the overarching deal. The potential shift in ownership dynamics could introduce a new chapter in the history of these sports teams, provided that the financial hurdle hindering the current negotiations is resolved in time. The fate of Rodriguez and Lore’s aspirations now hinges on their ability to navigate the challenging landscape of sports ownership and secure the resources needed to realize their vision for the Timberwolves.
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