As the Minnesota Timberwolves enter the section towards the NBA After the playoffs, their three-year ownership transition plan also comes to a head.
The deadline for Marc Lore and Alex Rodriguez to complete their purchase of the majority of Timberwolves stock and Lynx by Glen Taylor is at the end of March. Lore and Rodriguez remain on track to complete the deal, two sources involved in the plans said. Athleticism SATURDAY.
This is an unconventional process, given the years-long succession plan that was put in place when Lore and Rodriguez initially joined the ownership group as minority investors in April 2021. It is now is a good time to revisit the agreement to clearly spell out how this is all supposed to play out.
The plan
When Taylor agreed to sell the franchises to Lore and Rodriguez, it was important not only because of the transfer of power that was about to take place, but also because the owner of the Wolves and Lynx had finally found a configuration to his liking after more than a decade of searching for a successor. Taylor had conversations with a handful of potential partners before Lore and Rodriguez arrived, but he was never able to reach an agreement on the terms of a sale. Part of the reason was that Taylor wanted to make as sure as possible that a new group wouldn’t seek to leave Minnesota.
Another reason he never signed papers until 2021 was because Taylor loves being an owner of the Wolves and Lynx. He didn’t want to hand over the keys to the franchise immediately, preferring a plan that would allow him to be the franchise’s steward for a few more years before taking a back seat. Many potential buyers were eager to take over the franchise immediately. The gradual succession plan appealed to Lore and Rodriguez because they could take their time learning the ropes from Taylor and familiarizing themselves with a league that was unfamiliar to them. And that gave them time to get their finances together to finalize the $1.5 billion deal.
Even with the deal in place, there was an initial plan that Taylor would retain 20 percent ownership of the franchises.
The steps
Lore and Rodriguez must complete three steps to fulfill their obligations and become majority owners. It all started in 2021 with the purchase of the first 20 percent, making them minority owners in their own right. They bought 20 percent more last season and are expected to buy 40 percent more by the end of this month, giving them 80 percent of the Timberwolves and Lynx.
The last two steps followed identical processes. Both times, Lore and Rodriguez exercised their options to buy parts of the teams in late December. Some misinterpreted the exercise of these options to mean that they had purchased the shares. This is incorrect. Exercising the option simply opens a 90-day window for Lore and Rodriguez to purchase the shares.
With last year’s 20% purchase, Lore and Rodriguez exercised the call option in late December, then closed the purchase on March 28, 2023. This time, they exercised the option again option at the end of December and face the same deadline to close the purchase. Final 40 percent.
If they don’t have the money by the end of the month, the deal could fall apart and Taylor would retain control of the team. But sources in the Lore/A-Rod camp have been firm throughout the process, saying everything is in order. They have recruited a few minority partners to join their Purple Buyers Holdings LLC, but remain the faces of the deal and the main investors.
Assuming they complete the transaction, they would still need to be approved by the NBA Board of Governors.
The implementation
Although they are not majority owners, Lore and Rodriguez have been very visible and influential in decision-making over the past few seasons. Like Taylor and his wife Becky, they regularly sit courtside during games. Taylor gave them more leeway than any minority partner he’s had since purchasing the team to participate in high-level decisions.
Lore and Rodriguez took recruiting president of basketball operations Tim Connelly away from division rival Denver. Rodriguez was featured prominently during ESPN’s one-day visit to Minnesota after the All-Star break, including an on-court interview with Stephen A. Smith sitting next to him. Lore and Rodriguez have also overseen some small changes to the Target Center and are meeting regularly with players, coaches and management as they prepare to take over. They consulted with Connelly on trades, signings and other decisions that needed to be made.
Taylor was directly involved in every decision, including the one trade to bring in Rudy Gobert from Utah who was widely criticized last season and has been key to the team’s success this season. Taylor had final say on all major decisions and expenses, but worked with newcomers to make the onboarding process go smoothly. Lore and Rodriguez didn’t want to start from scratch when they took over, and Taylor’s willingness to allow them to operate with that freedom helped make that happen.
Throughout the process, the team flourished. The Timberwolves (42-18) sit in first place in the Western Conference and have stayed there for most of the season. Target Center was sold out for every game and hopes grew that this team could advance to the first round of the playoffs for only the second time in the franchise’s 35-year history.
Required reading
(Photo: David Berding/Getty Images)
