Last month, Alex Rodriguez signed a deal to buy the Minnesota Timberwolves. There is a part that needs attention here.
Former Yankees Sluggers $ 1.5 billion agreement Buying an NBA franchise with his business partner Marc Lore, an e-commerce tycoon, could be bumpy this week as one of the team’s minority owners urged him to delay the deal. There is.
A court-ordered suspension at a hearing scheduled for Monday is likely by some insiders, but will eventually become the owner of a professional sports team, A-Rod. Does not necessarily kill your bid. The deal has emerged less than a year after losing a bid to buy the New York Mets from hedge fund billionaire Steve Cohen.
Nonetheless, delays only add uncertainty to negotiations that are already risky, sources say.
Among the question marks are A-Rod himself, who was discovered at the Coral Gables hotspot in Miami at the end of last month, with executives from Lore and Timberwolves and “Pow Wow.” According to page 6.. One source claimed a former MLB star. At that time, he was weathering the headline of former Jennifer Lopez. Reunion with former flame Ben Affleck — Focused on “his kids, baseball, and business.”
Still, some insiders are worried about the terms of purchase. This requires A-Rod and Lore to acquire their first stake at just 20% and drop about $ 300 million with the option to buy the rest of the team within 18 months. .. This is far short of the early $ 2 billion cash swarm reportedly collected by A-Rod, Lore, and investor executives for the Mets bid.
In fact, close sources say A-Rod and Lore can make their first payment, but are struggling to raise the $ 1.5 billion needed to close the deal, and still that number. I’m not approaching.
Some wonder if a lack of funding from J-Lo (estimated net worth of $ 450 million exceeds A-Rod’s $ 350 million) could create headwinds for purchases, including WNBA’s Minnesota Lynx. I will. Roar, whose sources close to the bidding block say he is an “equal partner” with A-Rod, has a fortune of $ 4 billion.
In any case, the relatively skimpy 20% initial payment caused more pressing problems. That is, the current owner of the team is messing it up.
Minnesota judge Eric Tostrad will decide to request a postponement of an injunction from New Jersey real estate mogul Meyer Oberach, who owns 17%. Of the team.
Orbach is dissatisfied with team owner Glen Taylor, an 80-year-old printing tycoon who also owns the Star Tribune newspaper in Minneapolis, refusing to share revenue from down payments. I will. At a hearing on June 11, Oberach demanded that Taylor put it in escrow.
“Taylor admitted to me that he was selling the profits of Timberwolves and Lynx because he needed cash again,” Meyer said in a June 11 declaration. “Taylor needs money. Therefore, the proposed transaction is structured and aimed at providing liquidity to Taylor.”
Orbach has worked for over a year to help Taylor find investors, including those who are willing to pay more than $ 100 million to team chunks, but the pair “disagrees with the terms.” “.
Last summer, Taylor began negotiations to sell the team to Daniel E. Strauss for $ 1.5 billion, sources said. Memphis Grizzlies.. Negotiations collapsed in February after Taylor attempted to renegotiate prices, even though the deal was approved by the NBA, according to sources close to the situation.
Taylor and Strauss officials declined to comment.
Around the same time, Timberwolves Hall of Fame Kevin Garnett tweeted about his own interest in acquiring the team.
Nonetheless, Taylor never invited Garnet to bid and publicly claimed that Garnet never approached him in March.
It was almost a year after Garnett claimed that Garnett broke his promise to allow Taylor to join Taylor’s successor ownership group. At the time, Garnett said he was tired of dealing with Taylor, adding that “I’m not dealing with the snake’s mother.”
Further turmoil, Taylor has been sued in Minnesota court by plaintiffs, including former NBA great Kevin McHale, as a short-term investor in his company, Emboy Medical Corporation.
In response to a lawsuit demanding hundreds of millions of dollars in damages, Taylor argued against some of the plaintiffs, alleging defamation and retaliation by the former CEO of the company that was dismissed in 2012.
Taylor purchased Timberwolves and Lynx for $ 94 million in 1994. Since then, sources have said the franchise has struggled financially and in court, losing money most of the season and reaching the playoffs only once in the last 18 years.
Meanwhile, some owners say they’re collecting about $ 20 million in revenue distribution annually from more profitable teams, even though Timberwolves leads one of the league’s major markets. Sources close to the NBA say they are angry.
According to the deal, A-Rod and Lore officials who could leave the deal if not completed by July 31 declined to comment.
A-Rod’s contract to buy Minnesota Timberwolves is about to be tested
Source link A-Rod’s contract to buy Minnesota Timberwolves is about to be tested