Shama: Glen Taylor: Equity Group Not in Place for Wolves Sale

[BleedGopher]

Figured I'd start a new thread as this ongoing saga isn't really season specific. Jamiche has called B.S. on the ARod/Lore situation from the onset and he's looking more and more correct.

Per Shama:

Finalizing the deal to sell the NBA Timberwolves and WNBA Lynx remains unclear with a deadline of March 27 looming.

In 2021 owner Glen Taylor struck a multi-phase payment plan with Marc Lore and Alex Rodriguez to acquire the Minneapolis-based basketball franchises for $1.5 billion. The final payment to give Lore and Rodriguez majority control over the teams (Taylor becomes a minority owner) is due a week from Wednesday.

That deadline is an extension of a previous date and indicates the challenge the buyers have experienced in raising capital needed for the takeover. Taylor told Sports Headliners yesterday about $600 million is needed to make the final payment.

Doubters might be skeptical of the sale being completed. Taylor’s communications with the two buyers haven’t been frequent of late but he did offer important news about financing.

“They had an equity group that was going to come in and put in $300 million, and that equity group has either withdrawn or the NBA has denied them,” Taylor said. “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.”

The NBA will have a final call on approving the sale even if the Lore and Rodriguez group meet their final payment obligation. That might not be a slam dunk. If the league isn’t convinced the new owners can meet operating obligations with their finances, approval won’t be granted.

It’s believed Lore and Rodriguez will want to replace Target Center to better serve customers while improving revenues and financial value of the two franchises. A source told Sports Headliners the Farmers Market near downtown is a site of interest to the potential new owners.

Taylor would neither confirm nor deny the speculation about the location at 312 East Lyndale Avenue North. “…I don’t think I am the one that should comment on that. I think you should ask that of those guys.”

David Shama's Minnesota Sports Headliners

Howl Wolves!!

 

[Gopher_In_NYC]

Figured I'd start a new thread as this ongoing saga isn't really season specific. Jamiche has called B.S. on the ARod/Lore situation from the onset and he's looking more and more correct.

Per Shama:

Finalizing the deal to sell the NBA Timberwolves and WNBA Lynx remains unclear with a deadline of March 27 looming.

In 2021 owner Glen Taylor struck a multi-phase payment plan with Marc Lore and Alex Rodriguez to acquire the Minneapolis-based basketball franchises for $1.5 billion. The final payment to give Lore and Rodriguez majority control over the teams (Taylor becomes a minority owner) is due a week from Wednesday.

That deadline is an extension of a previous date and indicates the challenge the buyers have experienced in raising capital needed for the takeover. Taylor told Sports Headliners yesterday about $600 million is needed to make the final payment.

Doubters might be skeptical of the sale being completed. Taylor’s communications with the two buyers haven’t been frequent of late but he did offer important news about financing.

“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 said. “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.”

The NBA will have a final call on approving the sale even if the Lore and Rodriguez group meet their final payment obligation. That might not be a slam dunk. If the league isn’t convinced the new owners can meet operating obligations with their finances, approval won’t be granted.

It’s believed Lore and Rodriguez will want to replace Target Center to better serve customers while improving revenues and financial value of the two franchises. A source told Sports Headliners the Farmers Market near downtown is a site of interest to the potential new owners.

Taylor would neither confirm nor deny the speculation about the location at 312 East Lyndale Avenue North. “…I don’t think I am the one that should comment on that. I think you should ask that of those guys.”

David Shama's Minnesota Sports Headliners

Howl Wolves!!

Reminds me of trying to make my layaway payments to Marshalls in college.

 

[Blizzard]

One has to think the money will come from somewhere. As I've read what they put up so far in nonrefundable. That's some serious money to walk away from.

 

[Iceland12]

Marc Lore and Alex Rodriguez can't find billionaires to kick-in a few hundred million to keep the team in Minnesota and not be given a free, new arena?

Not shocking or real news.

The hate for Taylor may be understandable, but thinking that he was lying when he said that he couldn't find buyers who would agree to keep the team in Minneapolis is lunacy. Thinking that Lore and Rodriquez could is idiocy.

 

[Ogee Ogilthorpe]

Marc Lore and Alex Rodriguez can't find billionaires to kick-in a few hundred million to keep the team in Minnesota and not be given a free, new arena?

Not shocking or real news.

The hate for Taylor may be understandable, but thinking that he was lying when he said that he couldn't find buyers who would agree to keep the team in Minneapolis is lunacy. Thinking that Lore and Rodriquez could is idiocy.

I think all of this is probably pretty damn accurate. Ugly situation, across the board

 

[howeda7]

An opening for the Wilfs or Pohlads to pounce.

 

[short ornery norwegian]

the offer for the Wolves was low to begin with -and looks even worse when you compare it to the sale prices for other NBA franchises.

so - is that the best offer Taylor could get - or is that the best offer Taylor could get with a promise that the team would not be moved?

it may very well be that any person or group making a better offer would want to move the team.

....there is no way on earth the Pohlads would ever think of buying another pro sports team - but if they bought the Wolves, the screaming from the online complaining community would be hilarious.

 

[jamiche]

One has to think the money will come from somewhere. As I've read what they put up so far in nonrefundable. That's some serious money to walk away from.

They aren't walking away from it. They will own 40% of the team.

A sizable minority interest in any asset puts an investor in no man's land. A lot at stake and no control. Assuming Lore and ARod don't perform, my guess is they will start to file lawsuits. The ownership structure will become untenable for all parties, especially once a real buyer emerges.

 

[jamiche]

the offer for the Wolves was low to begin with -and looks even worse when you compare it to the sale prices for other NBA franchises.

so - is that the best offer Taylor could get - or is that the best offer Taylor could get with a promise that the team would not be moved?

it may very well be that any person or group making a better offer would want to move the team.

....there is no way on earth the Pohlads would ever think of buying another pro sports team - but if they bought the Wolves, the screaming from the online complaining community would be hilarious.

There never was a promise that the team wouldn't be moved. Taylor's lie surfaced when one of his limiteds sued him after the ARod/Lore deal was signed.

I think most people would be thrilled if somebody local, like the Pohlads, or quasi local, like the Wilfs, bought the team. At least the franchise would most likely stay here and both of those families have experience getting stadiums built in this market.

 

[MplsGopher]

MSP is the only market in the country that has 1 NBA and 1 NHL and they don’t play in the same arena?

The obvious thing is to build one new arena for both. Though not sure Xcel has any business being replaced even if around early 2030’s?

Hockey fans are really secular and cultish, and particularly hostile towards bball. They will demand optimal sight lines for hockey with no compromise for a multi-arena.

 

[short ornery norwegian]

There never was a promise that the team wouldn't be moved. Taylor's lie surfaced when one of his limiteds sued him after the ARod/Lore deal was signed.

I think most people would be thrilled if somebody local, like the Pohlads, or quasi local, like the Wilfs, bought the team. At least the franchise would most likely stay here and both of those families have experience getting stadiums built in this market.

do you follow the Twins? the "Cheap Pohlads" are disliked by a huge portion of the fan base. If they bought the Wolves, there may not be rioting in the streets, but it would be very unpopular.

the way franchise values are going up, I'm not even sure the Pohlads have that kind of money.

 

[jamiche]

do you follow the Twins? the "Cheap Pohlads" are disliked by a huge portion of the fan base. If they bought the Wolves, there may not be rioting in the streets, but it would be very unpopular.

the way franchise values are going up, I'm not even sure the Pohlads have that kind of money.

Of course I'm familiar with the Pohlad's reputation. As local buyers, they are far more likely to keep the team here. After the three year "layaway circus," I presume most wolves fans would be relieved to have the Pohlads step in.

Fair point on the money question. My guess is that the family is sufficiently well capitalized to buy the team (particularly at a $1.5B price) and get an arena constructed. However, I have no idea.

 

[Iceland12]

Sued by partner over sale, Glen Taylor says Wolves won’t move​

Taylor recently finalized an agreement to sell the team to Marc Lore and former baseball star Alex Rodriguez.

The 80-year-old Taylor purchased the Timberwolves in 1994 for $88 million to keep them from moving to New Orleans. He told reporters when the negotiations with Lore and Rodriguez began that the franchise remaining in Minnesota was a condition of the sale.

“There was no use talking to them if they didn’t agree to that,” Taylor said in an April 10 interview with The Associated Press..

Sued by partner over sale, Glen Taylor says Wolves won’t move | NBA.com

Taylor recently finalized an agreement to sell the team to Marc Lore and former baseball star Alex Rodriguez.

www.nba.com

 

[Ope3]

MSP is the only market in the country that has 1 NBA and 1 NHL and they don’t play in the same arena?

Arizona Coyotes and Phoenix Suns do not share an arena.
Florida Panthers and Miami Heat do not share an arena.

The obvious thing is to build one new arena for both. Though not sure Xcel has any business being replaced even if around early 2030’s?

Hockey fans are really secular and cultish, and particularly hostile towards bball. They will demand optimal sight lines for hockey with no compromise for a multi-arena.

I don't disagree with the secular and cultish aspect of hockey fandom, but if it works in Boston, New York, Philadelphia, Toronto, Denver, Dallas, Chicago & Los Angeles I do not see why it couldn't work in the Twins Cities, if one throws enough money at the situation, for shared arenas.

I have also seen NCAA Basketball games in 3 arenas that currently house NHL Teams but not the NBA, and they were perfectly fine for basketball, San Jose, Anaheim & Tampa.

 

[howeda7]

MSP is the only market in the country that has 1 NBA and 1 NHL and they don’t play in the same arena?

The obvious thing is to build one new arena for both. Though not sure Xcel has any business being replaced even if around early 2030’s?

Hockey fans are really secular and cultish, and particularly hostile towards bball. They will demand optimal sight lines for hockey with no compromise for a multi-arena.

The Wild fan base at this point is St. Paul and the St. Paul suburbs. They will never agree to move to Minneapolis and I doubt the Wolves would move to St. Paul. It makes more sense for the Wolves/Gophers to share an arena at this point.

 

[Iceland12]

The Wild fan base at this point is St. Paul and the St. Paul suburbs. They will never agree to move to Minneapolis and I doubt the Wolves would move to St. Paul. It makes more sense for the Wolves/Gophers to share an arena at this point.

True and kinda ironic huh?

Joe Soucheray writing for both the Mpls and St.Paul papers has decried every dollar of public money going to "millionaires and billionaires" for their stadiums going back to the Metrodome days. Though he was working in St.Paul when he came out loud and adamant that they needed public money to get Excel up to standards to lure the Wild.

While Sid, the long time "give all the millionaires and billionaires all the money they need, as long as they spend it in Minneapolis", loudly proclaimed that North Star season ticket holder and therefore the Wild's season ticket holders, would never go to St.Paul to watch hockey! They should upgrade Target Center and have the Wild play there.

Turned out that the Timberwolves didn't want to share and there were plenty of people with the money to support the Wild in St.Paul.

Come to think of it much like the Wolves did back then they would probably fight the idea to share their arena with anybody this time around. Guess that the Gophers wouldn't be any more excited about sharing their venue with the Timberwolves than they were excited about sharing the Dome with the Vikings.

 

[jamiche]

Sued by partner over sale, Glen Taylor says Wolves won’t move​

Taylor recently finalized an agreement to sell the team to Marc Lore and former baseball star Alex Rodriguez.

The 80-year-old Taylor purchased the Timberwolves in 1994 for $88 million to keep them from moving to New Orleans. He told reporters when the negotiations with Lore and Rodriguez began that the franchise remaining in Minnesota was a condition of the sale.

“There was no use talking to them if they didn’t agree to that,” Taylor said in an April 10 interview with The Associated Press..

Sued by partner over sale, Glen Taylor says Wolves won’t move | NBA.com

Taylor recently finalized an agreement to sell the team to Marc Lore and former baseball star Alex Rodriguez.

www.nba.com

According to Orbach's lawsuit, there's nothing in the contract that prohibits Lore and ARod from moving the team. That contradicted Taylor's public statements when the sale was announced. Legally, it's pretty hard for a seller to bind a purchasing entity to much of anything post closing.

 

[Iceland12]

According to Orbach's lawsuit, there's nothing in the contract that prohibits Lore and ARod from moving the team. That contradicted Taylor's public statements when the sale was announced. Legally, it's pretty hard for a seller to bind a purchasing entity to much of anything post closing.

The potential buyer from China said that there was a clause but then the NBA got cold feet about him buying in.

Orbach never mentioned anything about the clause before he found out that he couldn't cash in his minority share until the sale is completed. Though he's got a good point about his tag along rights he's a pretty lousy source about about a clause that slipped his mind for 5 years or so.

"Orbach, whose share of the clubs is larger than all of Taylor’s other minority investors combined, first bought in to the Timberwolves and Lynx in 2016. Orbach was given “tag-along rights,” which entitle minority partners to sell their stake in the event of a transfer of controlling ownership.

According to the complaint, Orbach’s tag-along rights were triggered by the sale agreement, but Taylor has denied them. The plaintiff wrote that the deal with Lore and Rodriguez was “structured as a clumsy attempt to circumvent” the tag-along rights."

 

[Ogee Ogilthorpe]

According to Orbach's lawsuit, there's nothing in the contract that prohibits Lore and ARod from moving the team. That contradicted Taylor's public statements when the sale was announced. Legally, it's pretty hard for a seller to bind a purchasing entity to much of anything post closing.

Just please, PLEASE, don't bring this shitshow organization to Las Vegas, for the love of GOD! We don't need that kind of disfunction here, especially if the Oakland A's are already coming.

Just say NO to the Timberwolves, Las Vegas!

 

[forever a gopher]

The rules of MN sports says that the Wolves will get good again (check), leave (looking more likely by the minute), and almost immediately win a title.

 

[jamiche]

Just please, PLEASE, don't bring this shitshow organization to Las Vegas, for the love of GOD! We don't need that kind of disfunction here, especially if the Oakland A's are already coming.

Just say NO to the Timberwolves, Las Vegas!

I don't think you have to worry too much about that, Ogee. From everything that I've read, Vegas and Seattle are the next "designated" expansion markets, probably at about $3B per franchise. That would mean each existing owner would get about $200M. The league won't give that up for a franchise transfer fee.

 

[jamiche]

The potential buyer from China said that there was a clause but then the NBA got cold feet about him buying in.

Orbach never mentioned anything about the clause before he found out that he couldn't cash in his minority share until the sale is completed. Though he's got a good point about his tag along rights he's a pretty lousy source about about a clause that slipped his mind for 5 years or so.

"Orbach, whose share of the clubs is larger than all of Taylor’s other minority investors combined, first bought in to the Timberwolves and Lynx in 2016. Orbach was given “tag-along rights,” which entitle minority partners to sell their stake in the event of a transfer of controlling ownership.

According to the complaint, Orbach’s tag-along rights were triggered by the sale agreement, but Taylor has denied them. The plaintiff wrote that the deal with Lore and Rodriguez was “structured as a clumsy attempt to circumvent” the tag-along rights."

I've never read anything about a Chinese buyer, though I'm curious to learn more about it. Nor do I care about Orbach's squabble with with Taylor. What most of us care about is what is supposedly in that purchase and sale agreement pertaining to relocation. Evidently, a recommendation to relocate is submitted to an Advisory Board. The AB has no power to stop a relocation and I read somewhere a while back that Lore and ARod are on the AB. If the above is accurate, the AB and any prevention of relocation is a sham.

A-Rod’s Timberwolves Deal Spawns Lawsuit Alleging Team Could Move

The potential sale of the Timberwolves to A-Rod is central to federal lawsuit over contractual rights of owners with minority shares.

www.sportico.com

 

[MplsGopher]

The rules of MN sports says that the Wolves will get good again (check), leave (looking more likely by the minute), and almost immediately win a title.

Sonics/Kevin Durant is to OKC
as
Twolves/ANT is to ???


KC has had an NBA ready arena since 2007. Just sayin

STL and Pittsburgh have NHL arenas. Cincinnati group wants to build a new downtown arena to replace their really old one and use it to attract NBA.

 

[Gophers1992]

Sonics/Kevin Durant is to OKC
as
Twolves/ANT is to ???


KC has had an NBA ready arena since 2007. Just sayin

STL and Pittsburgh have NHL arenas. Cincinnati group wants to build a new downtown arena to replace their really old one and use it to attract NBA.

What do those cities offer an NBA franchise that MSP doesn't, though? There's no lack of fan support here when the team is competitive.

 

[MplsGopher]

What do those cities offer an NBA franchise that MSP doesn't, though? There's no lack of fan support here when the team is competitive.

I think just a new(er) arena, or promises of such

 

[Iceland12]

.

What do those cities offer an NBA franchise that MSP doesn't, though? There's no lack of fan support here when the team is competitive.

Here we have the Vikings, Twins, Wild and the University teams. No team in a town with more than one attraction can do well if people only care about them when they are competitive. Ask the Gophers about that. Something that's been very rare for the Wolves anyway.

Here local radio/TV money and media coverage has been either non-existent or very negative. The team has been very bad so that explains the negative coverage. As for the radio/TV exposure and money for local media rights? Ask the Twins. They even tried to start their own radio coverage. Remember how badly that went? They weren't doing it because they were happy with money they were getting in the first place.

Now for the Wolves, thousands of fans in Minnesota can't watch the team play or in most cases listen to them. They've been regulated to a low power radio station in the past. The present set-up when the Wolves aren't on KFAN is a joke. If you "have to do this and then do that and then pray that the signal isn't disrupted" that isn't any coverage at all.

There are plenty of other business a billionaire could buy. Ego is one of the reasons potential owners want to buy a team is to get the goodwill that comes with it. You get none of that here.

Don't need to look anywhere but this site to see that haters are far more numerous than supporters of the team. Even people who are neutral about them is rare. If the buyers have done their research they know it's true.

Besides, if someone does buy the team, they'd have the resources to pay any fee it would take to move them to to an open city or even to Seattle or Las Vegas and fight the NBA in court if necessary.That is far more likely that any buyer who's done their homework would want to keep them here.

We've been told many times that any agreement to keep them here is unenforceable anyway

 

[Gophers1992]

.


Here we have the Vikings, Twins, Wild and the University teams. No team in a town with more than one attraction can do well if people only care about them when they are competitive. Ask the Gophers about that. Something that's been very rare for the Wolves anyway.

Here local radio/TV money and media coverage has been either non-existent or very negative. The team has been very bad so that explains the negative coverage. As for the radio/TV exposure and money for local media rights? Ask the Twins. They even tried to start their own radio coverage. Remember how badly that went? They weren't doing it because they were happy with money they were getting in the first place.

Now for the Wolves, thousands of fans in Minnesota can't watch the team play or in most cases listen to them. They've been regulated to a low power radio station in the past. The present set-up when the Wolves aren't on KFAN is a joke. If you "have to do this and then do that and then pray that the signal isn't disrupted" that isn't any coverage at all.

There are plenty of other business a billionaire could buy. Ego is one of the reasons potential owners want to buy a team is to get the goodwill that comes with it. You get none of that here.

Don't need to look anywhere but this site to see that haters are far more numerous than supporters of the team. Even people who are neutral about them is rare. If the buyers have done their research they know it's true.

Besides, if someone does buy the team, they'd have the resources to pay any fee it would take to move them to to an open city or even to Seattle or Las Vegas and fight the NBA in court if necessary.That is far more likely that any buyer who's done their homework would want to keep them here.

We've been told many times that any agreement to keep them here is unenforceable anyway

I guess I don't see a realistic new destination that doesn't have these issues too.

Seattle has all the other major sports and a major university.
Cincinnatti has NFL, MLB, plus NHL in Columbus, Ohio State, Cleveland sports, etc.
KC - Same as above, etc.

I guess I could see Vegas being kind of a unique and maybe attractive spot, but the Knights and Raiders and soon to be A's already beat them there. There's nowhere the Wolves can go and be the main attraction realistically.

 

[Ogee Ogilthorpe]

I guess I don't see a realistic new destination that doesn't have these issues too.

Seattle has all the other major sports and a major university.
Cincinnatti has NFL, MLB, plus NHL in Columbus, Ohio State, Cleveland sports, etc.
KC - Same as above, etc.

I guess I could see Vegas being kind of a unique and maybe attractive spot, but the Knights and Raiders and soon to be A's already beat them there. There's nowhere the Wolves can go and be the main attraction realistically.

I'm a firm, FIRM believer in the concept of a market saturation. There is a finite amount of dollars in the MSP market and I think they all pull from each other, and each fan base gets diluted as a result.
The absolute LAST thing I want to see in LV is an NBA franchise. No f'ng thanks. Having the Raiders and the Golden Knights is plenty, and who knows what's happening with the Oakland A's; that story seems to change every week and I stopped paying attention.

 

[Gophers1992]

I'm a firm, FIRM believer in the concept of a market saturation. There is a finite amount of dollars in the MSP market and I think they all pull from each other, and each fan base gets diluted as a result.
The absolute LAST thing I want to see in LV is an NBA franchise. No f'ng thanks. Having the Raiders and the Golden Knights is plenty, and who knows what's happening with the Oakland A's; that story seems to change every week and I stopped paying attention.

Yeah I don't at all disagree with the concept, I just have a hard time finding where they could move the team and not be dealing with it on some level. Pittsburgh, KC, Seattle,Cincinnatti, etc. all will have some sort of obstacles as well since they have a finite amount of dollars there too. Vegas is a bit of a unique market as you obviously know, so I could at least see where there would be some appeal there, but otherwise unless they want to move to Hartford or something, there's going to be competition for fan money and attention.

 

[Ope3]

I'm a firm, FIRM believer in the concept of a market saturation. There is a finite amount of dollars in the MSP market and I think they all pull from each other, and each fan base gets diluted as a result.
The absolute LAST thing I want to see in LV is an NBA franchise. No f'ng thanks. Having the Raiders and the Golden Knights is plenty, and who knows what's happening with the Oakland A's; that story seems to change every week and I stopped paying attention.

You're getting an NBA franchise whether you like it or not.

I would bet on LeBron being part of the Ownership.