Alex Rodriguez has apparently hit the buzzer in his bid to purchase the NBA’s Minnesota Timberwolves, despite some skepticism that he could raise money ahead of schedule this month, The Post has learned.
The previous Yankee and his billionaire business partner Marc Lore must split roughly $250 million in payments due March 28 to extend their stake to 40% in the $1.5 billion deal.
“The cash is in the bank and able to be funded today,” a spokesperson for A-Rod and Lore told The Post on Tuesday evening.
The apparent bank shot comes after some in the sports industry questioned whether their try to take control of the team would prove insufficient.
A-Rod and Lore have spoken to at the least one potential investor about selling a stake in the team for $3 billion – pointing to the recent $4 billion sale of the Phoenix Suns, a source near the situation said.
“It is a preposterous proposition,” said a source who believes T-Wolves’ value increased from an initial $1.5 billion after selling the Suns, but not that much.
The pair raised roughly $250 million in July 2021 for a 20% stake in the team in a three-stage plan that gave them the right to extend their stake to 40% by March 28.
In the event that they miss one other payment, current owner Glen Taylor would give you the option to interrupt the deal, sources near the situation say.
They now have until March 28, 2024 to purchase the remaining 40% to secure a majority stake in the struggling franchise.
Taylor, who plans to maintain the remaining 20% if the sale goes through, has the right to cancel the deal in the event that they miss any deadlines and keep them as minority owners.
The Timberwolves didn’t answer the calls.
A-Rod had financial problems during the first payment round, The Post reported exclusively.
The pair were alleged to be 50/50 partners, but Lore put up 13% of the money and A-Rod only 7%.
But each managed to money in on this round, despite some recent financial successes.
Lore, a Staten Island-born entrepreneur, needed to curtail his vision for start-up food delivery company Wonder.
It used Mercedes trucks to organize gourmet meals and deliver them to customers, but has switched to a more traditional brick-and-mortar concept in recent months, reports The Post.
Meanwhile, A-Rod announced last month that investors representing 61% of its Slam checks company had redeemed their shares, reducing their value to $224 million.
A-Rod has not entered into an agreement to purchase any company since Slam formed two years ago, giving investors a likelihood to exit.
The Timberwolves struggled on court and financially.
The team may miss the playoffs this season and is ranked twenty seventh out of 30 current teams.
Their lease at Goal Center, certainly one of the oldest in the NBA, will run until 2035.
The team can also be on the hook for a one-year, $41 million contract that can run for three more years after last summer trading 4 first-round draft picks from the Utah Jazz for All-Star Rudy Gobert – a deal approved by A-Rod and lore.
The increased payroll has pushed the franchise into the red, in response to a source near the situation, from earning about $7.5 million a 12 months to losing $25 million this 12 months.
A-Rod and Lore, who took second place in 2020 to purchase the Latest York Mets, rushed to the Timberwolves.
They participated in lots of T-Wolves games and played an energetic role in personnel decisions.