Does fame not equal to wealth anymore?
Last year, former MLB All-Star Alex Rodriguez and billionaire online retail magnate Marc Lore agreed to purchase the “Minnesota Timberwolves” and “Minnesota Lynx” of the NBA and WNBA, respectively. When the purchase was announced, Lore and Rodriguez had evidently reached a $1.25 billion agreement to purchase the teams, and Lore and Rodriguez intended to divide the purchase equally.
20% of the total purchase price, or $1.25 billion, was required as an initial down payment from the buyers. That equates to $250 million. Alex Rodriguez could not make his portion of the payment, and Marc Lore covered the portion Rodriguez could not pay, so the final division on this initial tranche was closer to 13% for Lore and 7% for Rodriguez.
By the end of last year, the next 20% of the duo’s payment was due. Despite having a net worth of $350 million, Alex Rodriguez reportedly needs help to raise his portion of the next $250 million installment. As a result, A-Rod may lose some control over Lore, who may purchase more than fifty percent of the team and assume sole control.
The plausible explanation might be unexpected because Jennifer Lopez is a significant factor in Alex’s failure. Alex and Marc have previously attempted to purchase a professional sports franchise.
Rodriguez and Lore first attempted to purchase a team in 2020 when they had their eyes on the New York Mets. This team ultimately went to hedge fund magnate Steve Cohen; still, Lore was interested in continuing to work with Rodriguez, who was dating Lopez then.
Lopez may have played a significant role in the prospective deal, and some co-investors even believed she was a partner, believing they invested alongside A-Rod and J-Lo. Rodriguez frequently hosted business meetings in the Bel-Air and Hamptons residences he shared with Lopez.
Although Lopez was not always involved in the negotiations, her presence in the home added to their allure, not just in loose clothing or a business suit. Jennifer would reportedly enter and exit the chamber wearing workout attire without comment regarding this implication.
Jennifer Lopez’s star status reportedly significantly impacted Lore and Rodriguez’s ability to attract financing partners. Alex may have a net worth of $350 million. Still, his wealth has been extensively invested, leaving him with less liquid assets than expected.
For instance, Alex is a partner in a $1 billion portfolio of real estate investments. Even without that investment, it would be difficult for anyone, not a multimillionaire, to come up with approximately $150 million on the spot. Losing Lopez’s celebrity power made it more challenging to raise funds.
Adding to the difficulty, NBA rules prohibit Rodriguez from becoming an owner if he cannot pay 15% of the total purchase price alone. Currently, this quantity is approximately $200 million, and if the investment team cannot provide a 50% stake, they will not have the ultimate say in managing the teams.
Glen Taylor initially listed the Timberwolves and Lynx for sale in April 2021 but stated that he would continue to operate both teams through the 2022-23 season. If the Rodriguez/Lore trade falls through, it could be a significant triumph for Taylor.
The Timberwolves’ value has increased to approximately $2 billion since Taylor began negotiating with A-Rod and Lore. It appears reasonably straightforward: Rodriguez has four months to collect the funds necessary for his next payment. Otherwise, he may observe other professional sports proprietors from the outside.