Alex Rodriquez, Marc Lore Lost Money to Claim Majority Ownership in Timberwolves Bid

Ex-MLB star Alex Rodriquez and his partner, Marc Lore, have lost the financial backing of the Carlyle Group with one payment left to claim majority ownership of the Minnesota Timberwolves, according to team owner Glen Taylor. In April 2021, Rodriquez and Lore agreed to purchase the Wolves in installments.

Their final payment would have closed the process. Lore and Rodriguez previously purchased two installments of 20% at a $1.5 billion valuation for the franchise, per a source close to the team.

Earlier this year, they exercised their rights to buy an additional 40% of the franchise. On Dec. 28, 2023, ESPN’s Adrian Wojnarowski reported that the duo was expected to exercise their second option by the Dec. 31 deadline.

How this process works:
– Lore/Rodriguez had until 12/31 to exercise the option to buy the 3rd piece for majority control.
– They exercised that option in Dec, which gives them until end of March to buy it.
– They closed their 2nd piece on 3/28 last year. Same timeline

— Jon Krawczynski (@JonKrawczynski) March 2, 2024

On Tuesday, Taylor told Minnesota sports reporter David Shama of Shama Sports Headliners that Rodriguez and Lore will now need to find a new financial backer to raise money for the final installment, which is due on Wednesday, March 27.

“They had an equity group that was going to come in and put in $300 million, and that equity group has either withdrawn or the NBA has denied them,” Taylor told Shama. “They have to go out and find new revenue. That I do know. I don’t know if they found it or what they’re going to do. We haven’t seen the schedule of ownership yet.”

Alex Rodriquez, Marc Lore have been in talks with other financiers in case NBA rejected Carlyle

Of course, it remains unclear why the Carlyle Group is out. Per Eric Jackson and Eben Novy-Williams of Sportico, the NBA told the business site in a statement that the league “did not deny Carlyle’s proposed investment.”

Lore and Rodriguez have reportedly been in talks with other financiers in the event Carlyle would not be approved by the NBA. If the payment is made, the change of ownership would still need to be approved by the NBA’s Board of Governors.