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

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So who gets to use that new executive suite that A-Rod and Lore had them put in the arena?
 




I think the bigger point with the suite is that it demonstrates part of the disconnect between Taylor and A-Rod/Lore. Taylor reportedly thought that putting in this luxury suite for the owners was an unnecessary expense.

from The Athletic:
The suite features marble flooring, a private bathroom, a bar, a dining area, plush furniture and flat-screen televisions.

Marble flooring? really? Maybe A-Rod would have been better off looking for investors instead of putting in a suite with marble flooring in the Target Center.
 


Kyle G retweeted some nobody guy's tweet that highlighted the following part of the contract as if it was going to be a silver bullet for Lore and Arod. I have no idea if that's even close to true, but here it is:

DXHUsqT.jpeg
 

that clause seems to be the issue here. A-Rod and Lore say they had submitted paperwork to the NBA that automatically triggers an extension period. Glen Taylor says A-Rod and Lore had not made the required payment by the deadline so there is no 'sale' for the NBA to approve.

so it comes down to how the clause is defined and whether the sale can be considered as completed before the money is paid.
 

short ornery norwegian said:
I think the bigger point with the suite is that it demonstrates part of the disconnect between Taylor and A-Rod/Lore. Taylor reportedly thought that putting in this luxury suite for the owners was an unnecessary expense.

from The Athletic:
The suite features marble flooring, a private bathroom, a bar, a dining area, plush furniture and flat-screen televisions.

Marble flooring? really? Maybe A-Rod would have been better off looking for investors instead of putting in a suite with marble flooring in the Target Center.
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They needed the suite to woo people with $$ to fund their bid apparently.
 




short ornery norwegian said:
that clause seems to be the issue here. A-Rod and Lore say they had submitted paperwork to the NBA that automatically triggers an extension period. Glen Taylor says A-Rod and Lore had not made the required payment by the deadline so there is no 'sale' for the NBA to approve.

so it comes down to how the clause is defined and whether the sale can be considered as completed before the money is paid.
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Glen is a dink to do business with and I am certain his ass relationships with past employees is proof. Smart folks steer clear so we end up with Kahn.
 

short ornery norwegian said:
I think the bigger point with the suite is that it demonstrates part of the disconnect between Taylor and A-Rod/Lore. Taylor reportedly thought that putting in this luxury suite for the owners was an unnecessary expense.

from The Athletic:
The suite features marble flooring, a private bathroom, a bar, a dining area, plush furniture and flat-screen televisions.

Marble flooring? really? Maybe A-Rod would have been better off looking for investors instead of putting in a suite with marble flooring in the Target Center.
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It feels great on your tootsies
 


Lore/ARod were on w/Dane Moore yesterday. Moore (w/Kyle Thiege) started out asking some tough questions and then basically gave up and let them ramble. Moore did ask them four times if they had funded the deal. They evaded three times and said yes once.
They have a good comms team, they are well rehearsed and Glen is the perfect foil. They will definitely win the PR war. That’s different from having the money to complete the purchase and run the team properly.
 



jamiche said:
Lore/ARod were on w/Dane Moore yesterday. Moore (w/Kyle Thiege) started out asking some tough questions and then basically gave up and let them ramble. Moore did ask them four times if they had funded the deal. They evaded three times and said yes once.
They have a good comms team, they are well rehearsed and Glen is the perfect foil. They will definitely win the PR war. That’s different from having the money to complete the purchase and run the team properly.
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Will then tell that to Darron Wolfson of KSTP. he said Lore/A-Rod never had the money to be majority owners of the Wolves.
 

gophersfan said:
Will then tell that to Darron Wolfson of KSTP. he said Lore/A-Rod never had the money to be majority owners of the Wolves.
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Maybe not. It shouldn’t take four times to answer yes to that question.
 

This story has so many twists and turns, I cannot figure out the truth.

Is it:
1) Lore/A Rod didn't have enough of their own funds in the deal, and the NBA didn't like that.
2) With so many financial deadlines being missed, the minority owners threated to sue Taylor.
3) Did Taylor have buyers-remorse, and didn't want to sell the team at a discount.
4) Were the new owners going to move the team to Las Vegas?

Give me your thoughts, I cannot figure this out.
Thanks
 

LakevilleBro said:
This story has so many twists and turns, I cannot figure out the truth.

Is it:
1) Lore/A Rod didn't have enough of their own funds in the deal, and the NBA didn't like that.
2) With so many financial deadlines being missed, the minority owners threated to sue Taylor.
3) Did Taylor have buyers-remorse, and didn't want to sell the team at a discount.
4) Were the new owners going to move the team to Las Vegas?

Give me your thoughts, I cannot figure this out.
Thanks
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The Truth is Out There
 

LakevilleBro said:
This story has so many twists and turns, I cannot figure out the truth.

Is it:
1) Lore/A Rod didn't have enough of their own funds in the deal, and the NBA didn't like that.
2) With so many financial deadlines being missed, the minority owners threated to sue Taylor.
3) Did Taylor have buyers-remorse, and didn't want to sell the team at a discount.
4) Were the new owners going to move the team to Las Vegas?

Give me your thoughts, I cannot figure this out.
Thanks
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From what I understand:
1. Lore/ARod needed to find new financial backing after the previous fell through ~2 weeks ago.
2. They found a new group to back them the next day. This group had also been a partial owner of a previous NBA team, so it seems like NBA approval was likely.
3. Lore/ARod submitted the funding pending NBA approval, which was in the process but not yet completed.
4. The deadline passed and Taylor said it's over and the team is no longer for sale. Also partially due to sellers remorse.
5. Lore/ARod say the contract is still good, and the deadline can pass if NBA approval is holding up to the fulfillment of the sale.
6. Lawyers/Courts will decide who's interpretation of the contract is correct.
7. Las Vegas and Seattle are marked for expansion teams, and the Wolves can't move there.
 

If it's a thing of Taylor taking advantage of this (arbitrary) deadline, then why did he give them extensions before??

Why can't anyone answer this?
 

MplsGopher said:
Kyle G retweeted some nobody guy's tweet that highlighted the following part of the contract as if it was going to be a silver bullet for Lore and Arod. I have no idea if that's even close to true, but here it is:

DXHUsqT.jpeg
Click to expand...

MplsGopher said:
If it's a thing of Taylor taking advantage of this (arbitrary) deadline, then why did he give them extensions before??

Why can't anyone answer this?
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1. Contractual is not arbitrary.

2. I haven't seen the whole contract but nearly all contracts contain language specifying that a party's waiver of a contractual provision does not prohibit future adherence to contractual provisions.

3. If a party grants a goodwill waiver of enforcement believing the other party, in good faith, can and will perform, and that party in fact does not or can not later perform, it is perfectly reasonable for the party to refuse to grant any further noncontractual goodwill extensions.

Who knows what the real story is here? Assuming that snippet of the contract you previously provided is true and correct, and further assuming that the interpretation of that provision is the relevant provision in question, and further assuming that Arod/Lore were ready to tender payment, and further assuming that they had not actually tendered payment because of pending NBA approval, then I'd rather be in Arod/Lore's position than Taylor's. Taylor's argument would have to be that Arod/Lore would actually need to have tendered payment (perhaps to be held in escrow pending NBA approval) and therefore the buyers are in default. It's not a great argument. This provision was not the most artfully drafted, though. I assume, though, that the purchase agreement had to have been subject to NBA approval. What are the usual and customary practices when NBA teams are sold?

But who knows what the details really are? Glen Taylor's track record with this franchise would lead me to put money on Arod/Lore if I were a betting man.

Edit: Reading this morning that the "deadline" to close was actually February, suggesting 3/27 might have been a courtesy date extended by Taylor. If so, Taylor very well could have been in a position to say "Purchase price tendered AND NBA approval by the 27th or we're done."
 
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there is a fair amount of reporting on this issue suggesting that Lore was focused on his new start-up food delivery company, and left A-Rod in charge of lining up investors - but A-Rod couldn't get people to commit. reporting also suggests that Lore expected A-Rod to put in an equal amount of money in the deal, but so far, of the 36% purchased by the pair, Lore's money accounted for 29% and A-Rod for 7%.

now, A-Rod and Lore say "we have the money." But if they had the money, why did they keep missing deadlines and asking for extensions? If you have the money, make the payment by the deadline.

side-note: Pat Reusse did a long interview with Glen Taylor in February in preparation for a story that was going to run when the sale was officially approved. according to Reusse, while he was waiting to interview Taylor, Taylor was doing a Zoom call with Lore. Reusse claims Lore was trying to get Taylor to invest in Lore's new start-up. that would also suggest that Lore was more concerned with his new venture than he was with the T-Wolves deal.
 

swede2 said:
1. Contractual is not arbitrary.

2. I haven't seen the whole contract but nearly all contracts contain language specifying that a party's waiver of a contractual provision does not prohibit future adherence to contractual provisions.

3. If a party grants a goodwill waiver of enforcement believing the other party, in good faith, can and will perform, and that party in fact does not or can not later perform, it is perfectly reasonable for the party to refuse to grant any further noncontractual goodwill extensions.

Who knows what the real story is here? Assuming that snippet of the contract you previously provided is true and correct, and further assuming that the interpretation of that provision is the relevant provision in question, and further assuming that Arod/Lore were ready to tender payment, and further assuming that they had not actually tendered payment because of pending NBA approval, then I'd rather be in Arod/Lore's position than Taylor's. Taylor's argument would have to be that Arod/Lore would actually need to have tendered payment (perhaps to be held in escrow pending NBA approval) and therefore the buyers are in default. It's not a great argument. This provision was not the most artfully drafted, though. I assume, though, that the purchase agreement had to have been subject to NBA approval. What are the usual and customary practices when NBA teams are sold?

But who knows what the details really are? Glen Taylor's track record with this franchise would lead me to put money on Arod/Lore if I were a betting man.

Edit: Reading this morning that the "deadline" to close was actually February, suggesting 3/27 might have been a courtesy date extended by Taylor. If so, Taylor very well could have been in a position to say "Purchase price tendered AND NBA approval by the 27th or we're done."
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Lawyers generally hate for their clients to litigate matters in the court of public opinion. Purely reckless speculation here - Arod and Lore didn't perform as required and perhaps are now jockeying for Glen to repurchase some or all of their interests. Sure, Arod made a lot of money playing baseball but not buy an NBA franchise rich. Lore is much more wealthy but in today's professional sports arena, he's not that wealthy by comparison. Arod was trying to collect a premium from investors. Lore is all in on a money losing online food business and was trying to pimp Taylor to invest. These guys might very well be overextended and cash poor and find themselves limited partners in a business that may or may not be profitable, and the owners of a team in particular that is going to get drilled with luxury tax. Glen Taylor has issued cash calls to his limited partners in the past and that may be forthcoming. These guys got to pretend they were NBA owners for a while and now they want their money back and perhaps even realize a gain on their previous investments. They are making a ton of noise now and are going to be a thorn in Taylor's side with the goal and hope that he pays them to go away. Again, purely reckless speculation.
 


swede2 said:
These guys got to pretend they were NBA owners for a while and now they want their money back and perhaps even realize a gain on their previous investments. They are making a ton of noise now and are going to be a thorn in Taylor's side with the goal and hope that he pays them to go away. Again, purely reckless speculation.
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This doesn't make much sense. They're not trying to get their money back. They're saying they have made the payment pending NBA approval, and that's allowed to extend past the deadline with their contract. They are trying to be the majority owners and are not backing out of the deal, which is what Taylor is doing.
 

GopherWeatherGuy said:
This doesn't make much sense. They're not trying to get their money back. They're saying they have made the payment pending NBA approval, and that's allowed to extend past the deadline with their contract. They are trying to be the majority owners and are not backing out of the deal, which is what Taylor is doing.
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What you see is not always what you get. My money hedges toward @swede2’s theory.
 

GopherJake said:
What you see is not always what you get. My money hedges toward @swede2’s theory.
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I have a hard time believing they would drag this out and fight it through the legal system if they didn't have legs to stand on.

If they were truly trying to recoup money, they would just sell the 36% they already own.
 

GopherWeatherGuy said:
I have a hard time believing they would drag this out and fight it through the legal system if they didn't have legs to stand on.

If they were truly trying to recoup money, they would just sell the 36% they already own.
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1. There's no shortage of head-scratching litigation. You don't need legs to stand on to start litigation. Flimsy, balsa wood, prosthetics will do. Big law can always justify litigation. No litigation has started yet. Glen Taylor seems to be wealthy despite his outward appearance as an idiot, at least when it comes to running the club. He is though a very capable idiot, though, and has built immense wealth starting from scratch. I do think that he has an ace up his sleeve, and that's the NBA. He's an existing owner and his buyers don't seem to fit the bill of the typical franchise owner. Who does the NBA want running this team?

2. The limited partnership agreement very likely limits the marketability of their limited partnership interests. In other words, they are prohibited and extremely limited as to how or to whom their interests may be sold. Very likely the general partner or the other limited partners have a right to purchase on terms favorable to the other partners.

3. Even if not limited by the partnership agreement, it appears that they were buying each tranche of partnership interests at a value reflecting a controlling interest, not a limited partnership interest that has no governance rights. Generally speaking, a non-governing and/or minority ownership interest is valued substantially less than a simple formula of percent interest * total value of company. For reference, the IRS will permit discounting of upwards of 40% in certain situations when valuing minority or non-governing interests in entities. It's possible that Arod/Lore wouldn't get their investment back.
 

GopherWeatherGuy said:
This doesn't make much sense. They're not trying to get their money back. They're saying they have made the payment pending NBA approval, and that's allowed to extend past the deadline with their contract. They are trying to be the majority owners and are not backing out of the deal, which is what Taylor is doing.
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Another April Fools gag huh?
 

GopherWeatherGuy said:
This doesn't make much sense. They're not trying to get their money back. They're saying they have made the payment pending NBA approval, and that's allowed to extend past the deadline with their contract. They are trying to be the majority owners and are not backing out of the deal, which is what Taylor is doing.
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Sure it makes sense. Who cares what they are saying? But they certainly wouldn't come out and say publicly that we want our money back. They are posturing. As I said, purely reckless speculation, but it's not an implausible scenario at all.

I frankly don't care how this works out. I think that from a fan standpoint and specifically of actually having a franchise here long term, Taylor is the better ownership option. The new guys are going to demand an arena very soon. Taylor is going to ask for one later. The new guys don't have the money to fund much, if any, of an arena project. Taylor has that ability (whether or not he would is another story, although he reported to Reusse that for him, it doesn't matter how much money he gets from the franchise, it's going to his foundation). I don't see any of our bodies politic having the stomach to fund an arena (notwithstanding the recent spending orgy). Subjectively I think Taylor has been a lousy owner. Objectively I think Taylor is a better owner than these guys long term.

You seem more invested in Arod/Lore than they are.
 
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swede2 said:
Sure it does. I agree, that's what they are saying. But they certainly wouldn't come out and say publicly that we want our money back. They are posturing. As I said, purely reckless speculation, but it's not an implausible scenario at all.
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Posturing publicly has nothing to do whether they are legally entitled to owning the majority of the team. That's what doesn't make sense to me.
 

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