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Alex Rodriguez and Marc Lore Lose Financial Backing from Carlyle Group
Former baseball star Alex Rodriguez and Marc Lore have encountered a setback in their bid to claim majority ownership of the Minnesota Timberwolves, as reported by current owner Glen Taylor. The ownership transfer process, initiated in April 2021, involved Rodriguez and Lore purchasing the Timberwolves in installments. Having acquired two 20% installments at a valuation of $1.5 billion for the franchise, they exercised their rights to buy an additional 40% earlier this year.
However, Taylor revealed to Minnesota sports reporter David Shama that the duo now faces the challenge of securing alternative funding for the final payment, which is due on March 27. The equity group that was supposed to contribute $300 million towards this installment either pulled out or was rejected by the NBA, according to Taylor.
Although the reasons behind Carlyle Group’s withdrawal remain unclear, the NBA stated to Sportico that they did not dismiss Carlyle’s proposed investment. In preparation for such a scenario, Lore and Rodriguez have been engaging with other potential financiers. Even if the final payment is successfully made, NBA’s approval for the change of ownership remains a mandatory requirement.
The acquisition deal also encompasses the controlling stake of the WNBA’s Minnesota Lynx, further adding complexity to the situation. With uncertainties surrounding the financial backing and the looming ownership transition, Lore and Rodriguez must navigate a challenging path to realize their ownership ambitions.
Source: Sportico
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