Report: Alex Rodriguez ‘Scrambling’ to Raise Money for Timberwolves Ownership Deal
AP Photo/Jae C. Hong
Alex Rodriguez’s deal to buy the Minnesota Timberwolves for $1.5 billion is reportedly in jeopardy.
Per Josh Kosman of the New York Post, Rodriguez was supposed to be an equal partner with e-commerce billionaire Marc Lore when they made a $250 million down payment in July 2021 that netted them a 20 percent stake in the team. However, Rodriguez reportedly failed to pay his full share and only came up with seven percent, while Lore covered the remaining 13 percent.
Kosman noted that the terms of the deal state the next 20 percent payment has to be received by the end of the year, and Rodriguez is “scrambling to raise his half in addition to the cash he needs for the down payment.” There’s a chance Lore ends up buying more than half himself to gain controlling interest in the team.
“I wouldn’t be surprised if A-Rod becomes a subservient No. 2 to Lore,” a source said told Kosman.
Lore told Kosman on Monday that he and Rodriguez still make all decisions together, but he neither confirmed nor denied that he owns the bigger stake in the team.
“I couldn’t imagine having a better partner. He is one of my best friends,” Lore said. “There is no one else I would rather be partners with than Alex.”
Rodriguez and Lore previously attempted to purchase the New York Mets together but were unsuccessful. At the time, Rodriguez was dating Jennifer Lopez, and one source told Kosman that the former New York Yankees slugger “always made it seem like they were investing as a couple.” It’s now being speculated that their breakup is the reason Rodriguez is struggling to raise his share of the money to purchase the Timberwolves.
“His ability to raise capital went from strong to meaningfully weaker,” a source told Kosman. “J.Lo validated him.”
Rodriguez and Lore could purchase another 40 percent and take control of the team by 2023, should they be able to make their payment by the end of the year. But if Rodriguez can’t make up his 50 percent stake, Kosman pointed out that “he and his co-investors could end up plowing cash into the team without getting a say in the team’s operations.”
If they end up falling short, it might be beneficial to Timberwolves team governor Glen Taylor. Kosman noted that Taylor “won’t be overly disappointed” if Rodriguez and Lore’s deal falls through because he “believes the value of the team has risen to about $2 billion since they struck the deal, and believes he can make more by starting a new sales process.”