Independent sports-business reporter Joe Pompliano says that Timberwolves majority owner Glen Taylor purchased another minority stake in the team.
Normally an innocuous occurrence in the sports world, right? Not this time.
This move is reportedly designed to keep Taylor above Alex Rodriguez and Marc Lore as the majority owner.
Not Unexpected
According to Pompliano’s report, when Taylor originally sold his personal equity to Rodriquez and Lore, his total stake dropped to 34%.
But Rodriguez and Lore’s investment grew to 36%.
This was not unexpected.
Rodriguez and Lore were looking to take over majority ownership. Yet Taylor, under the radar, bought limited partner Bill Sexton’s stake of 2.96%.
This purchase made Taylor the majority owner once again, 37% to 36%.
According to Athlon Sports, “In July of 2021, it was presumed that the two parties had agreed on a $1.5 billion sale for Rodriguez and Lore to become full owners of the Wolves and Minnesota Lynx (WNBA) until Taylor called off the third installment of their deal to officially give away full-ownership last month.”
“The entire situation has a lot of hoops to clear legally, as it seems that Taylor might not be as keen on selling his ownership stake as he was in the summer of 2021, but the two parties are likely the only people who truly know what was stated in the contracts signed” the report noted.
Might Be Headed to Court
The story continued, “On Monday, ESPN’s Adrian Wojnarowski reported that Taylor and the Rodriguez and Lore group will meet for mediation on May 1. Charley Walters of the Pioneer Press, however, reported April 20 that mediation is not expected to result in a settlement. Wojnarowski says that mediation was in the original contract as the first step should things go south. “
But what might happen after the May 1 mediation?
Pompliano said, “Then, if that doesn’t work, it will head to a three-person arbitration committee, with one person picked by Taylor, another picked by Rodriguez and Lore, and the third mutually agreed upon by the other two.”
“If that doesn’t solve the issue, then the argument will go to court,” he added.
