Arbitration ruling to determine who owns the Timberwolves and Lynx coming Friday or Monday

[BleedGopher]

Per STrib:

The question of who owns the Timberwolves and Lynx should be answered either Friday or Monday, according to sources with knowledge of the arbitration process.

Attorneys for current majority owner Glen Taylor and attorneys for minority owners Marc Lore and Alex Rodriguez made their arguments in front of a three-member arbitration panel in November in Minneapolis.

Those arguments came after months of legal posturing over Taylor’s claim in March of last year that the teams were “no longer for sale.”
The arbitration process was built into their purchase agreement, and the final decision will be binding and likely unappealable.

When Taylor canceled the sale via a press release, Lore and Rodriguez were trying to secure financing on a final call option of a 40% ownership stake from Taylor that would have given them majority ownership of both teams.

The central question the panel was set to answer was whether Taylor had the right to cancel the sale. When Lore and Rodriguez agreed to buy the team in 2021, the two sides agreed to a series of call options on tranches, or portions, of ownership.

Arbitration ruling to determine who owns the Timberwolves and Lynx coming Friday or Monday

A three-member arbitration panel heard arguments from attorneys for Glen Taylor and attorneys for Marc Lore and Alex Rodriguez three months ago.

www.startribune.com

Howl Wolves!!

 

[fan of Ray Williams]

Lore and ARod the winners?

 

[Slim Tubby]

Lore and ARod the winners?

I wonder if Bloomberg ends up being the majority Owner. Hopefully, Seattle and Vegas get awarded expansion teams quickly, too, before those rumors start to heat back up.

 

[tikited]

Meet the new boss, same as the old boss?

 

[jamiche]

Lore and ARod the winners?

It would be more credible if that gossip hound on ESPN put it out there.

 

[jamiche]

I wonder if Bloomberg ends up being the majority Owner. Hopefully, Seattle and Vegas get awarded expansion teams quickly, too, before those rumors start to heat back up.

The NBA is not going to let the wolves move to Vegas or Seattle. The expansion fees dwarf a relocation fee. They will let the wolves move to another market if they don't get a new building. It has happened before.

 

[Slim Tubby]

The NBA is not going to let the wolves move to Vegas or Seattle. The expansion fees dwarf a relocation fee. They will let the wolves move to another market if they don't get a new building. It has happened before.

I'd put the chance at about 0.001% that they could move the team. ARod does have a home, businesses and ton of relationships in SEA.

The ownership fiasco and our arena issues still raise a few concerns, though. I only mention Bloomberg because he has all the cash. Lore and ARod are guppies in a pond of billionaires.

 

[jamiche]

I'd put the chance at about 0.001% that they could move the team. ARod does have a home, businesses and ton of relationships in SEA.

The ownership fiasco and our arena issues still raise a few concerns, though. I only mention Bloomberg because he has all the cash. Lore and ARod are guppies in a pond of billionaires.

The chances are .001% that they are moving to Seattle. The NBA isn't giving up that market for a lousy relocation fee, even if ARod owned ten homes in that market.

Agree that these guys are guppies, which is why they need Bloomberg. Without him in some kind of a controlling position, the NBA might turn these guys down even if they win in arbitration.

 

[Slim Tubby]

The chances are .001% that they are moving to Seattle. The NBA isn't giving up that market for a lousy relocation fee, even if ARod owned ten homes in that market.

Agree that these guys are guppies, which is why they need Bloomberg. Without him in some kind of a controlling position, the NBA might turn these guys down even if they win in arbitration.

The reason you're ultimately correct is that if they relocate a team to SEA, then they have to add three (3) expansion teams to keep the league and schedule balanced.

I'm not a fan of ARod and couldn't trust him less so I certainly have some bias about the situation.

 

[Slim Tubby]

Nothing official but rumors are that all of Taylor's hires are putting out feelers for new gigs.

It's crazy that Lore and ARod will almost immediately double their investment with the revised value of the Wolves jumping to over $3B since the original Purchase Agreement was signed.

 

[fan of Ray Williams]

Nothing official but rumors are that all of Taylor's hires are putting out feelers for new gigs.

It's crazy that Lore and ARod will almost immediately double their investment with the revised value of the Wolves jumping to over $3B since the original Purchase Agreement was signed.

Yeah, read that also.

 

[jamiche]

The reason you're ultimately correct is that if they relocate a team to SEA, then they have to add three (3) expansion teams to keep the league and schedule balanced.

I'm not a fan of ARod and couldn't trust him less so I certainly have some bias about the situation.

As I've said, I'm fine with the change if Bloomberg really is involved and takes control of the partnership. At least he has NBA money. Taylor is not a paragon of virtue, but he's the liar we know and he has history and at least (maybe) a modicum of loyalty to this market. ARod is just a bullshitter without NBA level money. Lore left it up to ARod to raise his share while he chased his upscale food court idea that isn't going to work. The partnership lacks capital and credibility with these two guys in the lead.

 

[GopherLady]

News should be coming today, that's what I last heard at the Target Center on Saturday.

 

[Breakin' The Plane]

Lore and ARod it is, per AP Sports Guy.

 

[gophersfan]

 

[GopherWeatherGuy]

Good riddance to the worst owner in sports!

And it’s just another thing that @jamiche got wrong about the Wolves.

 

[Slim Tubby]

Now we wait and see who the real new Owner(s) will be and how financially committed they are to winning. Pelinka is probably on the phone right now offering Reaves, Knecht and a 2035 Draft pick for Ant.

 

[Slim Tubby]

Good riddance to the worst owner in sports!

And it’s just another thing that @jamiche got wrong about the Wolves.

He did save the franchise from relocation before having the chance to make all of his terrible choices.

 

[Spaulding!No!]

I wonder if they got the team at the agreed price. Glen is taking it in the shorts.

 

[Slim Tubby]

I wonder if they got the team at the agreed price. Glen is taking it in the shorts.

I believe the original sale was for $1.7B and that wasn't changed or even discussed during arbitration. With the new NBA TV deals, some think the team's value is close to $3B now.

There was also a "leak" that LoRod's Ownership Plan submitted to the Board of Governers and their Lender (Carlisle) not only included getting below the 2nd Apron, but to also cut enough payroll to get out of the Luxury Tax entirely.

If true (who knows), that's the equivalent of letting Randle, Naz and NAW all go without any replacement players or salary.

 

[howeda7]

I'd put the chance at about 0.001% that they could move the team. ARod does have a home, businesses and ton of relationships in SEA.

The ownership fiasco and our arena issues still raise a few concerns, though. I only mention Bloomberg because he has all the cash. Lore and ARod are guppies in a pond of billionaires.

I'd put the chance of the new owner moving the Twins at 0.0001%. The Wolves? It's much higher than that. It's still not likely in the near-term, but if they can't get a new arena by 2030 or so, it could easily happen.

 

[jamiche]

Good riddance to the worst owner in sports!

And it’s just another thing that @jamiche got wrong about the Wolves.

Glad you are so thrilled about ARod.

You are still butt hurt about taking the L on player wear and tear. You'll get over it.

 

[swede2]

The chances are .001% that they are moving to Seattle. The NBA isn't giving up that market for a lousy relocation fee, even if ARod owned ten homes in that market.

Agree that these guys are guppies, which is why they need Bloomberg. Without him in some kind of a controlling position, the NBA might turn these guys down even if they win in arbitration.

What's stopping the owners from charging an expansion style relocation fee? A-Lor have a lot of equity in the team and could sell a billion dollars worth of ownership in the team and still maintain controlling interest, with the cash paying the relocation fee.

At the same time, they could sell the same amount and use the cash on a new arena here. I have a hard to believing that the city and the legislature have the appetite for a billion dollar plus arena.

 

[jamiche]

What's stopping the owners from charging an expansion style relocation fee? A-Lor have a lot of equity in the team and could sell a billion dollars worth of ownership in the team and still maintain controlling interest, with the cash paying the relocation fee.

At the same time, they could sell the same amount and use the cash on a new arena here. I have a hard to believing that the city and the legislature have the appetite for a billion dollar plus arena.

Agree on your second point. Hard to see how they are going to get any public money, especially when they are buying the asset at 40-50% of market value. (Also hard to see how these two operators had to scramble to raise money for such a steal. Doesn't bode well.)

Reportedly, the expansion fees for Seattle and Vegas, the front-running markets, are $3-6B per team. If so, a $1B relocation fee for Seattle or Vegas would probably not be approved.

 

[swede2]

Agree on your second point. Hard to see how they are going to get any public money, especially when they are buying the asset at 40-50% of market value. (Also hard to see how these two operators had to scramble to raise money for such a steal. Doesn't bode well.)

Reportedly, the expansion fees for Seattle and Vegas, the front-running markets, are $3-6B per team. If so, a $1B relocation fee for Seattle or Vegas would probably not be approved.

I was just going to post about the second bit and my underselling expansion fees.

 

[Spaulding!No!]

I concur with Jamiche. Once in a lifetime deal for those buyers.

 

[Slim Tubby]

I concur with Jamiche. Once in a lifetime deal for those buyers.

Forbes just updated the Timberwolves franchise value at $3.1B and that includes having one of the five (5) worst revenue-generating arenas in the league.

 

[Spaulding!No!]

Glen Taylor goes through life making deals and then toward the end he takes a beating. Something doesn’t add up.

 

[jamiche]

I concur with Jamiche. Once in a lifetime deal for those buyers.

ARod barely escaped on this one. He was trying to mark the deal up on his potential investors and they weren't having it. He was saved by the language in the contract because it appears that they didn't actually have the funds to close by the strike date in the contract.

Bloomberg is the key to a privately financed arena, which means he's the key to the future of the team in MN.

 

[jamiche]

Glen Taylor goes through life making deals and then toward the end he takes a beating. Something doesn’t add up.

He's worth billions of dollars. Not sure that's really true.

He bought the team for about $90M and the amount of his own money in the deal was minuscule. He did fine. I hate to say it but I think this one might have been age related.