Why did the Minnesota Timberwolves sale fall apart?

Current Timberwolves majority owner Glen Taylor and the Marc Lore/Alex Rodriguez-led group that expected to take over control of the team have a difference of opinion over whether the prospective owners should have been granted an extension on Wednesday’s deadline to finalize the sale, according to Chris Hine of The Star Tribune.

As Hine explains, language in the sale agreement indicated that the March 27 deadline could have been extended by 90 days if the two sides were awaiting NBA approval to complete the deal. A source tells The Star Tribune that Lore and Rodriguez submitted paperwork to the league last week to complete the agreement and believed a 90-day extension should have been granted in order to give the NBA time to make its decision.

However, Taylor stated that an agreement between him and the Lore/Rodriguez group needed to be completed before the league could approve it and he believes no such deal was in place.

“They didn’t meet our obligations, so we’re just saying the deal is off,” Taylor said. “But even if we said, ‘OK, we think we have a deal with you,’ they have to start all over and go to the league and the league has to approve of them. … That’s no guarantee.”

According to Patrick Reusse of The Star Tribune, Taylor also pushed back on reports claiming that his relationship with Lore and Rodriguez has “deteriorated” over the past couple years.

“I don’t know if that’s accurate,” he told Reusse. “Lore told me he has been busy 24/7 with other projects. And A-Rod — he has a lot of people to meet when he’s at a game. The deadline had been pushed back, and they missed it. That’s what led to this.”

Taylor also acknowledged that litigation is a possibility if Lore and Rodriguez want to pursue their claim to ownership: “Everyone has the right to bring in the lawyers.”

Here’s more on the Timberwolves’ ownership drama:

• According to Reusse, Taylor dismissed the idea that an increase in NBA franchise valuations over the past two to three years led to his decision to strictly enforce Wednesday’s deadline and nix the sale. “Not for me,” said Taylor, who initially agreed to sell the Wolves for a $1.5 billion valuation. “My money’s going to the Taylor Foundation, not in my pocket. But my limited (partners), they might be happy if the Timberwolves are sold later for a higher price.”
• On the other hand, a statement Taylor gave to Jon Krawczynski of The Athletic (X link) didn’t exactly put to bed the idea that the longtime Wolves owner is experiencing seller’s remorse. “I just think (we) built this team,” Taylor said in explaining why he’s not putting the team back on the market. “We’ve got the players now. And it appears to me that we should have a very positive run for a number of years, and I want to be a part of that.”
• Reusse’s Star Tribune column on the situation includes several more tidbits of note, including Taylor specifying that the Lore/Rodriguez group currently owns 36% of the team. “I will work with them, as I do with my other limited (partners),” Taylor said. The 82-year-old also repeated a point he’s made before, telling Reusse that if he was concerned about maximizing his payout, he could’ve agreed to sell the Wolves to an owner that wasn’t committed to keeping the franchise in Minnesota. “We could’ve gotten $2.5 billion paid upfront, but that person was going to try to move the team to Las Vegas,” Taylor said.
• Josh Kosman and Ryan Glasspiegel of The New York Post take an in-depth look at why the deal didn’t go through, suggesting that Lore was “laser-focused” in recent months on his gourmet food delivery-company Wonder and left the final stage of the process largely to Rodriguez. According to The Post’s sources, Lore put more money in during the group’s first two rounds of payments and wanted Rodriguez to invest more this time around to “catch up,” so it was left to A-Rod to raise capital.
• Sources tell Kosman and Glasspiegel that Rodriguez was trying to sell interests at a valuation of over $2 billion, rather than his $1.5 billion valuation, which diminished enthusiasm among potential investors to some extent, especially since those investors would be playing “second fiddle” within the ownership hierarchy. While A-Rod eventually raised the money necessary – the equity fund Blue Owl HomeCourt made an investment, per Hine, after the NBA rejected The Carlyle Group, per The Post – “the whole process was delayed” and went down to the wire, according to Kosman and Glasspiegel.
• Mike Conley said Friday that the ownership situation doesn’t have much of an impact at this time on the Timberwolves’ players, who are focused on their Friday matchup with the rival Nuggets, relays Hine. “Maybe it affects the image of the team, the aura of the team around a little bit,” Conley said. “But as far as the players are concerned, I think we just are like, ‘Damn, that’s crazy.’ Then we got back to watching film and worrying about (Nikola) Jokic, Jamal Murray, and (Michael) Porter and those guys.”