The Minnesota Timberwolves and Lynx ownership has been contentious over the past year. Glen Taylor, the long-time owner of both teams, agreed in 2021 to sell the franchises to Marc Lore and Alex Rodriguez for $1.5 billion. They structured the deal in three phases: Lore and Rodriguez initially purchased 20% of the teams, then 20%, and finally, a 40% chunk that gave the new owners control. Taylor would then transfer the remaining 20% at a later date.
The process hit a snag when Taylor accused the prospective owners of missing crucial deadlines and failing to provide the necessary documentation for the final phase of the purchase. (The buyers did provide paperwork a week before their deadline.) Taylor attempted to cancel the sale, also citing a loss of $300 million in funding from the Carlyle Group. The buyers assured Taylor that funding was still in place, but Taylor canceled the sale at the deadline. The buyers pointed out that the purchase agreement had a subsection labeled “Call Option Closing,” which automatically allowed the buyers an additional 90 days to close the deal if outside approval and other details held up the sale at the deadline. A legal battle ensued, culminating in arbitration.
The arbitration process and decision
Arbitration is a method of resolving disputes outside the courts, where a neutral third party, or a panel, makes a binding decision. In this case, a three-member arbitration panel reviewed the dispute between Taylor and the buyers. The panel listened to arguments from both sides, examining the claims and evidence presented. Taylor argued that Lore and Rodriguez had not met the agreed-upon conditions, while the prospective owners contended that Taylor was experiencing seller’s remorse and was attempting to back out of the deal.
Since the Timberwolves/Lynx $1.5 billion valuation in 2021, a lot has changed:
- The Timberwolves had three playoff appearances and went to the Western Conference Finals in 2024.
- Guard/small forward Anthony Edwards is an NBA superstar.
- The Lynx are four-time champions in a league whose value has grown considerably.
Estimates now put the two teams’ value around $3 billion.
The ruling
After careful consideration, the arbitration panel ruled in favor of Lore and Rodriguez. The decision, which was a 2-1 vote, stated that Taylor did not have the right to cancel the sale. This ruling allows Lore and Rodriguez to purchase another 40% of the teams, pending approval from the NBA’s Board of Governors. As is common with arbitration, the panel’s decision is binding, meaning that Taylor must comply with the ruling and complete the sale.
Using arbitration to resolve disputes in sports
Arbitration has proven to be an effective method for resolving disputes in the sports world, not only in ownership battles but also in conflicts involving athletes and staff. It offers a quicker, less formal alternative to traditional court proceedings, providing a fair and impartial decision-making platform. Unlike litigation, the details of the arbitration are also private—in this case, the arbitrators will not comment on their decision.
The ruling clears the way for the new owners to take over. They now have 90 days from the ruling to complete the sale.