The final installment in an unusual, multi-stage sale of the Timberwolves to new owners Marc Lore and Alex Rodriguez almost hit a serious snag — The Carlyle Group dropped out of financing $300 million of a final payment — but a new group, Dyal Capital Partners, has stepped in and kept the sale on track.
Much like the sale of this team, this latest drama is a long story. It started recently when outgoing owner Glen Taylor, speaking to reporters, said Lore and A-Rod had lost some of their financing.
“They had an equity group that was going to come in and put in $300 million, and that equity group has either withdrawn or the NBA has denied them. They have to go out and find new revenue. That I do know.”
An NBA spokesman said the NBA did not deny The Carlyle Group’s investment. However, the NBA and Carlyle Group had been in negotiations about an investment and could not agree on the structure, sources told Eric Jackson and Eben Novy-Williams at Sportico.
That appeared from the outside to potentially upend the sale of the final 40% of the team by a March 27 deadline, except Lore and Rodriguez reportedly were already talking to other potential financiers. Enter Dyal Capital Partners, reports Shams Charania.
Dyal Capital Partners has joined as a pre-approved investor in the Lore-Rodriguez group, giving them the final financial backing necessary to complete the transaction, sources said. Lore and Rodriguez are ready to close the sale as soon as NBA approves. https://t.co/ho1PdsqDfb
— Shams Charania (@ShamsCharania) March 20, 2024
Considering the rising franchise values around the NBA, and the league about to land a new television deal that will dramatically increase team revenue, this seems like a safe investment.
All this comes with a Timberwolves roster that already has one of the highest payrolls in the NBA this season and things are about to get more expensive with the max extensions of Karl-Anthony Towns and Anthony Edwards set to kick in next season. This roster is headed for a financial cliff and changes will have to come, either this offseason or the one after. Lore and Rodriguez will have control of the team and will face those hard choices in the coming year.
