A three-person arbitration panel has ruled in favor of Minnesota Timberwolves and Lynx owners Marc Lore and Alex Rodriguez, allowing them to continue their bid for majority ownership of the franchise. The decision sets up a high-stakes vote among fellow NBA owners to decide control of the team.
The ruling determines that current owner Glen Taylor breached terms of the sales agreement by announcing last March 28 that Lore and Rodriguez had missed a deadline for a $600 million payment, which would have secured an 80% majority control of the teams. The arbitrators found that Taylor’s interpretation was incorrect, and Lore and Rodriguez were entitled to a 90-day extension.
Lore and Rodriguez disputed the contract terms, claiming they had the right to the extension. They have since raised an additional $950 million in funding, placing it in an escrow account, and are ready to complete the purchase. To help fund the deal, they have partnered with billionaire investors Michael Bloomberg and Eric Schmidt.
The sale of the Timberwolves is subject to approval by at least 23 of the 30 current governors. This will be a rare test of NBA owners’ support for a team change, as Taylor has a long-standing relationship with Commissioner Adam Silver. Lore and Rodriguez have met with dozens of owners in recent months to gain support.
The decision was welcomed by Lore and Rodriguez, who expressed their enthusiasm for completing the transaction and winning championships in Minnesota. However, Taylor’s response was less clear, stating only that he is disappointed by the 2-1 decision and will review it before commenting further.
The sale price of $1.5 billion has been deemed below market value since four other teams changed controlling shares and reset the market in recent years.
Source: https://www.espn.com/nba/story/_/id/43785345/panel-rules-lore-rodriguez-sale-timberwolves