(Bloomberg) — Minnesota Timberwolves minority owners Marc Lore and Alex Rodriguez have failed in their drawn-out attempt to take over the National Basketball Association franchise and its WNBA counterpart Lynx.
The option for the investors to acquire a controlling interest has expired, according to a statement from the team. Lore and Rodriquez had 90 days to close a deal under the terms of their agreement.
Lore and Rodriguez agreed to buy the Timberwolves at a valuation of $1.5 billion in the spring of 2021. The deal called for the pair to buy the team in three installments, beginning with a 20% stake that year. Lore and Rodriguez acquired another 20% in 2023 and were due to make payment on a final 40% and take control of the team on March 27.
However, issues arose over the final installment. Rodriguez and Lore tapped the Carlyle Group for $300 million to help purchase the team. But according to the Athletic, Carlyle could not agree to certain requirements the NBA has for investors.
“They had an equity group that was going to come in and put in $300 million, and that equity group has either withdrawn or the NBA has denied them,” majority owner Glen Taylor told reporters earlier this month after the Carlyle deal fell apart. “They have to go out and find new revenue.”
The duo pivoted, bringing in Dyal Capital Partners to try to help push the deal over the finish line. Dyal Capital are a pre-approved investor in NBA teams, and hold a number of stakes in rival franchises.
“I will continue to work with Marc, Alex and the rest of the ownership group to ensure our teams have the necessary resources to compete at the highest levels on and off the court,” Taylor said in the statement.
“The Timberwolves and Lynx are no longer for sale,” he added.
A spokesperson for Dyal Capital Partners declined to comment. A spokesperson for Lore and Rodriguez could not be reached for comment.
Rodriguez is a co-host of the Bloomberg Podcasts/Bloomberg Originals program The Deal.
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–With assistance from Brandon Sapienza.
(Updated with additional context throughout.)
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