There’s been a lot of talk about changes in team ownership and investments and Alex Rodriguez has been at the forefront of discussions regarding his involvement in the ownership of the Timberwolves with the financial backing of a private equity firm.
However, there has been a recent shift in circumstances, leading to discussions and analysis among sports enthusiasts, as Rodriguez’s partner has been forced to head in a different direction.
Alex Rodriguez is seeking a new partner after losing $300 million
The duo, comprising Alex Rodriguez and Marc Lore, had gradually acquired ownership stakes in the Minnesota Timberwolves and the WNBA’s Minnesota Lynx. Their upcoming payment, scheduled for March 27, was crucial as it would have secured them majority ownership of the teams. However, complications arose as their proposed equity group, expected to contribute $300 million, faced challenges in gaining approval from the NBA.
Despite this setback, Rodriguez and Lore are actively seeking alternative financing options to finalize the purchase. Their initial investments in 2021 and last March totaled 40%, and the upcoming payment would have increased their ownership to 80%, positioning them as the majority owners.
During a conversation with Minnesota-based reporter David Shama, Timberwolves owner Taylor said, “They had an equity group that was going to come in and put in $300 million, and that equity group has either withdrawn or the NBA has denied them. 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.”
In 2021, the two individuals bought 20% of the Timberwolves, leading to a $1.5 billion deal. They acquired an additional 20% in March, bringing their total ownership to 40%. With the upcoming payment, they will own an additional 40%, making them the majority owners with an 80% stake in the team. Alex Rodriguez, 48, is known for attending Timberwolves games and recently gained attention for his tan while sitting next to his girlfriend Jaclyn Cordeiro.
Carlyle Group has decided not to proceed with Alex Rodriguez
Taylor informed Minnesota sports reporter David Shama that Rodriguez and Lore must seek alternative funding for the remaining payment due on March 27. The original equity group that planned to contribute $300 million either withdrew or faced denial from the NBA, necessitating the search for new sources of revenue.
The reasons for the Carlyle Group’s exit were not explicitly stated, and the NBA clarified that they did not reject Carlyle’s investment proposal. Lore and Rodriguez have explored options with other financiers in case Carlyle’s participation is not approved. The NBA’s Board of Governors would still need to approve the ownership change, which includes acquiring the majority stake in the WNBA’s Minnesota Lynx.
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