Kofi Inkoom
Aside from the Timberwolves facing a significant luxury tax penalty ahead of the 2024/25 season, another issue looms as the teams’ the ownership dispute will continue into the next season.
Nick Williams of the Minneapolis Star Tribune reports that an arbitration hearing set for early November aims to settle the dispute between minority owners Marc Lore and Alex Rodriguez and principal owner Glen Taylor.
This disagreement has been ongoing since the end of the regular season. Taylor canceled the previous staggered payment plan with Lore and Rodriguez, alleging a breach of contract.
Lore and Rodriguez disputed this, claiming they had the funds to become majority owners but were waiting for NBA approval, which they believed should have granted them an extension.
The contested third payment would increase Lore and Rodriguez’s ownership share from 36% to about 80%. The purchase agreement also allows them to buy out Taylor’s remaining 20% stake by March 2025.
The arbitration hearing is expected to last about a week, with a decision from the three-member panel within 30 days, Williams adds. A mediation hearing on May 1 failed to resolve the dispute, pushing the issue to arbitration.
If the panel rules in Taylor’s favor, he will retain majority ownership. Alternatively, the panel could grant Lore and Rodriguez a 90-day extension, requiring Taylor to either sell them the team or pay monetary damages.