Marc Lure overly reliant on Alex Rodriguez with Timberwolves: source

Marc Lure said a few years ago that owning the Minnesota Timberwolves would be a dream come true, but he essentially gave up on the option of buying control of the team, handing control to Alex Rodriguez.

If the deal goes through, Lore will become the team’s owner, while Rodriguez, his friend and co-investor, will play a more minor role, sources said.

However, Luol told the NBA that he is worth about $4 billion and that he and A-Rod and co-investors increased their stake in the team from 40% to 80%, compared to the 5.2 he and A-Rod needed. Of the $1 billion, he didn’t want to invest most of it.Wednesday deadline

Timberwolves majority owner Glen Taylor made the shocking announcement that the team is no longer for sale, with A-Rod and Mark Lure expected to become the new majority owners soon. Associated Press

Gray Wolf Boss Glen Taylor terminated sale Thursdayending Lore and A-Rod’s chances of buying a majority stake in the team.

Lore is willing to invest a relatively small amount of money, but hopes that A-Rod, who has invested much less than Lore, can catch up in a new round of financing to a level closer to his investment level, said a source with direct knowledge of the situation.

The original plan was for Lore and A-Rod to invest roughly equally in the team. That meant A-Rod needed to raise most of the money for his next investment round, which he tried for months.

It may help that A-Rod hasn’t hired an investment banker in recent months, sources said.

He and Lore agreed to buy the Timberwolves in three steps in 2021 at a valuation of $1.5 billion. Jointly purchased 40% of the team in two phasesA-Rod is believed to be worth far less than Lore and will need to fund the next payment on his own, according to sources with direct knowledge of the situation.

A-Rod is trying to sell its interest in the new round of financing at a valuation of more than $2 billion instead of $1.5 billion, people familiar with the matter said. The team was worth about $3 billion in three years, based on other NBA sales.

A-Rod will pocket the difference between the $1.5 billion purchase price and the valuation of the shares sold, people familiar with the matter said.

A-Rod may try to own a professional sports team again. Anthony Causey

Maybe he would have had an easier time if he lowered his expectations.

Not many people are willing to give in to the Lore and A-Rod ownership group.

“Alex already knows everyone,” said a source who recently spoke to A-Rod and is considering investing in the team.

A-Rod’s ace in the hole is private equity firm Carlyle Group. However, the NBA took months to approve Carlyle and ultimately rejected him in recent days.

Still, without Carlyle, A-Rod developed a backup plan and raised money, but the entire process was delayed.

A-Rod and Lore insist they’re on time, but Taylor disagrees and now it’s up to the mediator to decide.

What’s clear, sources say, is that even if Lowe and A-Rod get the money they’re awaiting approval from the NBA, approval isn’t expected until an April board meeting.

The deadline to complete a trade is March 27, and the question is whether the NBA extended the date or even has legal standing.

Marc Lore is turning a very upscale food delivery company in Wonder into brick-and-mortar and ghost kitchens. Matthew McDermott

A-Rod may have been surprised by Taylor’s announcement that the deadline would not be extended, with a source who has dealt with the owners saying, “I bet A-Rod knew that when he read the press release this morning. That’s what Glenn’s style.”

In fact, according to sources, Taylor met with Lorre and A-Rod a few days ago and hinted that everything was fine.

Former Timberwolves general manager Kevin McHale sued Taylor in 2020, and Taylor had a history of conflicts with past partners for allegedly sabotaging a medical company he owned.

One source said Taylor enjoys running the team and has made that clear to Lore and A-Rod in recent months that he feels they are too involved.

A source told The Washington Post that Taylor had “cold feet” on the deal in recent months as the Timberwolves rocketed into NBA title contention and Anthony Edwards blossomed into a superstar. .

Taylor’s statement ostensibly confirms this claim To Jon Krawczynski of The Athleticwhich states: “I just think [we] “We’ve built this team. We’ve got the players now. In my opinion, we should have a very positive momentum over the next few years and I want to be a part of that.”

NBA commissioner Adam Silver has yet to make any comment on Glen Taylor’s decision. Associated Press

Taylor and the Timberwolves organization issued a preliminary statement The two issued a scathing statement, saying Rodriguez and Lore missed the March 27 financial deadline and that the team was “no longer for sale.” Accusing Taylor of “seller’s remorse.”

“We have fulfilled our obligations, have all necessary funding and are fully committed to completing the acquisition of the team as soon as the NBA completes its approval process,” Rodriguez and Lore said in a statement.

“Glenn Taylor’s statement is an unfortunate case of seller’s remorse, behavior that is short-sighted and damaging to the team and fans during a historic winning season.”

Now it looks like mediators will decide what happens next.

Alex Rodriguez had raised $520 million essentially on his own as of the end of March. Getty Images

The Timberwolves enter Thursday with a 50-22 record and are half a game behind the defending Western Conference champion Nuggets, the top seed.

Terminating the deal would be a good thing financially for Taylor.

If Taylor later decides to resell his shares, he should have no problem finding someone else to buy 40% of the team, sources said, valuing the team at potentially as much as $3 billion, twice what Luol and A-Rod agreed to pay .

Now, Lore is focused on maintaining his gourmet food delivery company, Wonder. He has invested hundreds of millions of dollars in the loss-making startup in recent months. Just completed a US$700 million round of financingsources said.

Marc Lore (eating popcorn) is no longer the source of funds for A-Rod to acquire the Timberwolves. Associated Press

The New York Times published a feature about Lore and his plans this month Make Wonder a $30 billion company.

wonder, as Post Exclusiveoffering significant discounts to investors who purchased convertible shares in this round, valuing the company at $3.5 billion – the same valuation it was at when Wonder was acquired Last raised funds in June 2022.

Lore owns more than half of the company, which represents the majority of his net worth.

Under the terms of the new offer, investors who buy the securities now will have the right to convert them into shares in the next funding round at a 50% discount to the company’s valuation, making this round a downside financing.

Lore founded Diapers.com and famously sold his grocery startup Jet.com to Walmart in 2016 for $3.3 billion. told Fox Business last month He now spends 100 hours a week on Wonder.

He still attended many Timberwolves games but left most of the fundraising to A-Rod.

The Minnesota Timberwolves have one of the best players in the NBA in Anthony Edwards Getty

If Lore sells the stake he has purchased in the team (estimated at 27%), he could double his money and use it to help Wonder, or replenish his coffers.

Luol and A-Rod also came close to acquiring the Mets in 2020, but failed.

them Lost to hedge fund billionaire Steve Cohenhe bought the team for $2.4 billion.

In an unusual move at that auction, Mets bankers asked A-Rod to preview their final offer. A-Rod showed it to the Mets. Cohen then struck a deal for slightly more than that amount, leading A-Rod to believe the entire process was rigged, The Post reported at the time.

For now, it looks like another miserable failure.

According to a previous report by The Washington Post, part of Lore’s attraction to A-Rod at the time came from A-Rod’s then-girlfriend Jennifer Lopez.

“Marc is totally obsessed with the J-Lo thing,” Sources who know two investors explain.

According to people familiar with the situation, A-Rod frequently called into the power couple’s luxury homes in Bel Air and the Hamptons to meet with potential business partners, and Lopez was often on hand.

“You’re always in A-Rod meetings with J-Lo,” the source said, “and she’s in and out of the room in tracksuits.”

A-Rod and Lore launched a takeover of Gray Wolf shortly before the pair called off their engagement — and sources revealed that A-Rod wasn’t fully prepared for the breakup from a financial standpoint.

September 27, 2021 Said when posting a photo of himself on X Alongside Timberwolves star Karl-Anthony Towns said: “If only I could tell my 15-year-old self this story. A dream come true! It’s an honor to be a part of this A-Rod team.”

Lore declined to comment after his resignation. A-Rod declined to comment and did not return calls.

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