Former Yankees great Alex Rodriguez and billionaire Marc Rohr plan to take their dispute over control of the Minnesota Timberwolves to arbitration with the NBA team’s majority owner Glen Taylor, according to reports. That’s what it means.
A-Rod and Lore, who made their fortunes by founding e-commerce unicorns Quidi and Jet.com, said Taylor’s decision to break a deal to sell him an 80% stake in the team for $1.5 billion was “unconscionable on the part of the seller.” He is accusing the government of having “a guilty conscience.”
The companies had planned to make the payments in three installments, but Lore refused to distribute the majority of the funds, forcing them to withdraw the remaining $520 million and increase their stake from 40% to 80%. The Post exclusively reported that it was not possible.
This dispute is expected to go to arbitration in the future. The Financial Times reported on Tuesday.
It may take several months for the issue to be resolved.
The newspaper reached out to Mr. Taylor, Mr. Rodriguez and Mr. Lore for comment.
Sources close to Taylor told the FT that the 83-year-old billionaire and former politician would have gone through with the sale if Lorre and Rodriguez had met the conditions specified in the sales agreement.
Mr. Taylor claimed that Mr. Lorre and Mr. Rodriguez missed the deadline to pay the final tranche of $1.5 billion. Mr. Lorre and Mr. Rodriguez denied the allegations.
Taylor, who bought the Wolves in 1994 for about $94 million, agreed to a $1.5 billion sale three years ago.
However, the team’s valuation has since soared to nearly $3 billion, according to reports.
The Timberwolves have been one of the NBA’s best teams this season, holding a 2-0 lead over the defending champion Denver Nuggets in the best-of-seven Western Conference semifinals on Monday.
By March of last year, Lore and A-Rod had about 36% of the Timberwolves and WNBA’s Minnesota Lynx.
A few months later, they exercised an option to buy additional shares in the team that would give them majority control.
In late March, the Post reported that Lore told the NBA that he was worth about $4 billion, but that he and Rodriguez needed to raise their stake in the team to 80% for the $520 million. Reportedly did not want to invest much of the dollar.
Mr. Lore was willing to invest a relatively small amount of money, but this new round of funding will give him a much larger share of his investment. Officials said they were hoping to catch up to a similar level. said a person with direct knowledge of the situation.
Taylor issued a statement saying A-Rod and Loa had missed the deadline for additional payments, effectively ending negotiations.
“I will continue to work with Mark, Alex, and the rest of the ownership group to ensure our team has the resources it needs to compete at the highest level on and off the court,” Taylor said in a statement in late March. Ta.
“The Timberwolves and Lynx are no longer for sale.”
Despite Taylor’s insistence that the team is not for sale, Rohr has not given up on acquiring a majority stake in the club, a person familiar with the situation told the Post last month.
Lorre and Rodriguez released a joint statement in late March expressing their disappointment in Taylor and insisting they support terminating his contract.
“We have met our obligations, have all necessary funding in place, and are fully committed to completing the acquisition of the team once the NBA approval process is complete,” A-Rod and Lore said.
“Glenn Taylor’s statement is an unfortunate case of remorse on the part of the seller, shortsighted and causing confusion for the team and fans during a season of historic victories.”
The NBA has reportedly instructed both sides to stop issuing statements to the press.
League commissioner Adam Silver said last month that “the league has no role” in mediating disputes between sellers and sellers of teams.
Taylor also accused Lorre and Rodriguez of not being well-liked by his family as well as the Timberwolves fan base.
Lorre and Rodriguez also reportedly alienated local residents by building luxury suites at the team’s home arena, despite being advised not to do so. According to USA TODAY.
The newspaper reports that the two minority investors are now barred from accessing the suite and from management meetings related to the Timberwolves and Lynx.
