In the latest episode of Sporticast, hosts Scott Soshnick and Eben Novy-Williams discuss some of the biggest sports business stories of the week, including the strange situation at hand. acquisition of the Minnesota Timberwolves by Alex Rodriguez And Marc Loré.
Already one of the most bizarre team sales in the modern world NBA story – it was supposed to take place over four years, even though Rodriguez and Lore didn’t have the money to begin with – the process took another turn this week. Carlyle Group, which financed much of the most recent payment, withdrew from the group after months of discussions with the NBA over how the deal would be structured. Carlyle was expected to make around $300 million, current Timberwolves owner Glen Taylor suggested this week.
The hosts reflect on what the loss of Carlyle could mean for the group. Lore and Rodriguez have until the end of the month to close the deal, representing a tight deadline to secure new financing. Representatives of the group said Sportico that they still expected the deal to be completed on time. (Editor’s note: A few hours after filming this episode, Sportico reported that Dyal was in talks to provide funding in Carlyle’s absence).
Regardless of the outcome, this is likely a type of deal that the NBA would not greenlight in the future. Rodriguez and Lore have spent the last few years raising money, and doing so at a valuation higher than the deal itself. If they close on that 40% of the team, they have another 20% left to purchase early next year if they want.
Next, the hosts discuss March Madness, which begins in earnest on Thursday. Big deal stories this year include the commercial growth of the women’s tournament and the rapid changes facing college sports in general, such as antitrust lawsuits, unionization efforts, conference realignment, loosening of transfer rules, and NIL deregulation .
The hosts close by discussing the history of JP Morgan new sports investment banking group.
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