Alex Rodriguez’s $1.5 Billion Minnesota Timberwolves Investment and Their Shocking NBA Rise – Explained

The journey of the Minnesota Timberwolves since 2021 has been nothing short of a movie. The team which was the center of ridicule due to its unfortunate circumstances, has suddenly found itself on the doorstep of glory. This on-field rise has coincided with the dawning of a new era backstage. In 2021, former Yankees superstar Alex Rodriguez partnered up with Marc Lore to begin his purchase of the Wolves. While fans were skeptical of this purchase, the surge in the team’s fortunes has turned a few heads around. 

However, this has also given rise to a big question – is Rodriguez responsible for this rise? In what has been one of the sports’ biggest stories, here’s a deeper look at what makes the T-Wolves so special. More importantly, what has turned the forever-meandering franchise into the giant slayers of today?

When did Alex Rodriguez enter Minnesota Timberwolves ownership?

It was 2021, the Wolves had made only one playoff appearance since 2004. The ownership of Glen Taylor was under constant attack by basketball fans. The constantly decreasing fortunes of the Timberwolves weren’t hidden from Taylor, who finally agreed to sell the team. However, things couldn’t progress past most suitors due to a variety of reasons. Taylor loved the franchise and as a result, had strict personal criteria for all potential suitors.

However, then entered Alex Rodriguez with his entrepreneur friend Marc Lore. In what was a repeat of how Taylor bought the franchise in 1994, talks had turned into an agreement in less than a week. A-Rod had stuck personal rapport with Taylor but it was still surprising how quickly things progressed. One moment Rodriguez and Lore had signed a letter of intent, the next they were negotiating a take-over. 

Eventually, a deal was stuck where the duo agreed to buy the Minnesota Timberwolves for a valuation of $1.5 billion. This sent shockwaves across the fanbase, not only because the team was finally sold but because it was bought by two non-residents of Minnesota. Apprehension abounded regarding the possibility of the team moving to a different city. However, these worries were eradicated when Taylor announced that the new owners had agreed to keep the team in the Twin Cities. Questions then emerged regarding Marc Lore, the partner of Rodriguez.

Who is Marc Lore, A-Rod’s partner?

Known for his entrepreneurial ways, Marc Lore’s entry into the group wasn’t surprising. Also, his relationship with Rodriguez extends past their ownership of the Timberwolves. The two have formed a venture capital firm named Vision Capital People. Together, the duo has invested in companies like NOW//with.

Lore is also famously known for founding Jet, an e-commerce company that eventually got sold to Walmart for $3.3 billion. After this sale, Lore became the President and CEO of Walmart US E-Commerce. Eventually, the business magnate stepped down from this role in 2021 and focused more on the Wonder Group, the company he formed in 2018.

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While Lore continues to be an investor, his biggest goal as of now is to build a new city. Wanting a create a city of the future, he has named this project Telosa. However, that doesn’t mean his attention from the Minnesota Timberwolves has reduced. Along with Alex Rodriguez, Lore is working hard to complete their purchase of the franchise.

Present Status of the Deal: Has Alex Rodriguez Met Every Deadline?

There was a unique structure given to the deal. An agreement was set that Alex Rodriguez and Lore will purchase 20% of the Wolves in 2021, another 20% in 2022, and finally 40% in 2023. This would make them the majority owners of the team with an option to buy the rest by 2025.  By March 2023, after a momentary hiccup where the duo missed the December 2022 deadline, they were able to purchase 40% of the team for over $500 million. 

However, the big news came in December 2023. Rodriguez and his partner added former Google CEO Eric Schmidt to their group. It was reported that they had raised additional money at the valuation of $2.1 billion, a big increase over their purchase price of $1.5 billion. With this raise, they are seemingly in a position to complete the purchase of the remaining 40% during the first half of 2024.

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This will bring their share to a whopping 80%. However, even though Rodriguez and his partners have yet to gain the controlling share, they have already begun to be involved in the day-to-day activities of the Wolves. 

Is A-Rod the reason behind the Timberwolves’ success?

It was reported that Alex Rodriguez and Marc Lore were partly responsible for bringing in Tim Connelly as the Timberwolves’ president of basketball operations in 2022. They were also the ones that pushed for a few market moves, including the blockbuster trade for Rudy Gobert. This may have had a good impact on the time. 

The formerly struggling Minnesota Timberwolves has gradually seen its fortunes grow since 2021. As of February 14, 2024, the Wolves are leading the Western Conference with a record of 38-16. That’s a win percentage of .746! However, this victory isn’t completely on the back of the new ownership as the team has been building its roster for a long time.

The emergence of their superstar trifecta of Anthony Edwards, Karl-Anthony Towns, and Rudy Gobert has turned their fortunes around. The Wolves, a team earlier known for bad defense, have turned into a compact unit. As a result, it’s the first time in a long time that they look like a complete package. 

This has given another challenge to A-Rod as eventually keeping this core intact will cost a lot. There have been doubts about whether the new ownership will be able to bear the cost of taxation or not. However, that’s something that will be known eventually, until then the people of the Twin Cities can enjoy their much-deserved moment in the sun.

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