Majority Ownership Decision: Lore and Rodriguez Triumph Over Taylor in Timberwolves Sale

MINNEAPOLIS, Minn. — In a significant turn of events for the Minnesota Timberwolves, a three-member arbitration panel concluded that Glen Taylor, the longtime owner of the franchise, did not have the authority to cancel a pending sale of 40% ownership to Marc Lore and Alex Rodriguez. The ruling, announced on Monday, puts Lore and Rodriguez one step closer to taking majority control of the team.

The arbitration decision culminates a lengthy and contentious four-year saga that began with an agreed-upon $1.55 billion sale in 2021. After multiple delays and disputes, Taylor attempted to halt the sale last year, claiming that Lore and Rodriguez missed essential deadlines to finalize their acquisition.

“We are extremely pleased with today’s decision,” Lore and Rodriguez said in a joint statement. “We look forward to working with the NBA to complete the approval process and close this transaction so we can turn our attention to winning championships in Minnesota for our incredible fans and the Twin Cities community.”

Lore and Rodriguez are believed to have approximately $940 million ready in escrow to transfer to Taylor for the final payment. Following the panel’s decision, they now have 90 days to complete the sale, pending approval from the NBA’s Board of Governors.

The arbitration was centered on a key clause in the ownership purchase agreement. Lore and Rodriguez argued that an automatic 90-day extension for completing the sale should have been triggered when they submitted paperwork to the NBA and awaited the league’s approval. In contrast, Taylor claimed that a “limited extension” could have been granted only if specific conditions were met, which he maintained did not occur.

According to reports from The Athletic, the arbitration panel sided with Lore and Rodriguez’s interpretation, affirming their stance that they acted within the bounds of the agreement.

The Timberwolves’ estimated value currently stands at $2.94 billion, while the Lynx, the WNBA team also affected by the ownership change, is valued at $85 million, per Sportico. Taylor originally purchased the Timberwolves in 1994 for approximately $94 million.

The arbitration panel consisted of Kathleen Blatz, Thomas Fraser, and Joseph R. Slights III, all distinguished figures within the legal community. Blatz, a former chief justice of the Minnesota Supreme Court, was appointed by Taylor. Fraser, who previously served as a District Court judge in Hennepin County, was chosen as a neutral arbitrator. Slights, with an extensive background in business litigation in Delaware, came in as a selection from Lore and Rodriguez.

As negotiations proceed, Taylor’s contentious attempt to cancel the sale last March stemmed from financial uncertainties experienced by Lore and Rodriguez. Reports indicated that the two lost backing from the Carlyle Group shortly before the deadline, which Taylor cited as grounds for cancellation. However, Lore and Rodriguez asserted they had alternative financing arrangements in place.

Blatz’s decision illustrated that the extension outlined in the purchase agreement applied, indicating that Taylor’s cancellation constituted a breach of contract.

Moving forward, if the NBA’s Board of Governors approves the sale and Lore and Rodriguez meet the payment requirements, they will officially assume majority ownership. Lore and Rodriguez, who have been prominent on the sidelines during games, aim to infuse new energy into the Timberwolves organization, which Taylor has helmed for three decades.