Sale fell through, Glen Taylor remains owner

[davemang]

Yep, seems like we're gonna have to savor our (hopefully long!) playoff run because as soon as twolves are knocked out or win it all, it's gonna be nothing but doom and gloom for months and months.

[FNG]

Nobody knows how this is going to sort out, and Adam Silver is not putting his cards on the table (although when questioned he did agree that whether Lore/ARod had the right to not make the payment on 3/27 because the league had not yet approved the deal was at "the heart of their dispute". By the way, does anyone else find it odd that almost two years after the deal was proposed, the NBA has still not approved the deal? What's holding up their approval? I'm guessing there may be some information about Lore and/or Arod they are still investigating, but who knows.

Anyway, we like to predict outcomes here, so based on what we know (or think we know) to date, here is my forecast:

1) The courts will rule that Glen's claim that the Lore group violated the agreement will be tossed out because the NBA had not yet approved the deal. Why would anyone be forced to make a final payment for a deal that might not be approved?

2) After the NBA approves the transfer of ownership (and I think they will...whatever issue out there that has caused them to delay approval will be resolved), Glen will be compelled to complete the sale under the terms of the agreement, and the Lore group will become the new majority owner.

3) Regardless of what happens in the playoffs, the new owners will cut enough payroll (starting with KAT, but it will also likely take more, especially if Ant makes all-NBA) to keep us under the lux tax level...not the second apron, but the lux tax level. If the Wolves do poorly in the playoffs, the new owners will say it's time to blow it up and start over. And if the Wolves do really well in the playoffs (such as make it to the finals or even win a chip), the new owners will feel we have had our fun, and now it's time to be fiscally responsible.

4) If the new owners tell TC he has to cut nearly $30 million in payroll to avoid the lux tax, he will exercise his option and put himself in play to go elsewhere...he certainly will be in demand. Lore has made public comments before that he is willing to do what it takes to bring a championship, and TC likely relied on these comments to decide to come here...he's not going to be happy if Lore forces him to make cuts. But if Glen somehow prevails, I think TC stays.

There's my prediction. I'm obviously now Team Taylor based on the Woj tweet, assuming it's accurate. If new information comes out that shows Woj was dead wrong, I'll probably go back to Team Lore.

Who else wants to go on record?

[WildWolf2813]

The sale won't go through.

Glen will remain owner.

Glen will quietly still entertain offers to buy the team, though with the same parameters and process as the other attempts, which will scare off potential buyers.

Glen will cut payroll and eventually alienate Ant because in cutting payroll, he'll be getting rid of everyone close to him while not being able to replace them with younger cheaper talent.

Glen will die still owning the team. The family will not want it.

The team will be sold to the highest bidder after the league has already expanded to Seattle and Vegas.

The team will still relocate anyway.

[FNG]

Ouch, WW! Okay, we now have a contest between me on WW. (I don't like either prediction though) Who else is in?

[davemang]

Not to mention if Glen wins, who is going to bother wanting to purchase the team after this debacle and the Arod/Lore group still owning 40%?

[Coolbreeze44]

I don't think Lore and ARod can truly afford the team. They are both insanely rich by everyone's standards, but being NBA-Owner rich is a horse of a different color.

I predict Glen wins the power struggle and keeps the team.

I predict TC leaves for a more stable situation.

I predict the Wolves make a reasonable trade involving KAT which brings a point guard and draft capital back.

I predict the rest of the team remains mostly intact except for some free agents like NAW we won't be able to retain.

I predict we make the WC finals this year, losing to the Nuggets in game 7 of a spirited series.

I predict we remain relevant going forward as a top 4 team in the West

[BloopOracle]

Ahh so the first dance is actually the last dance! Very on brand for the Wolves.

[mjs34]

Nobody knows how this is going to sort out, and Adam Silver is not putting his cards on the table (although when questioned he did agree that whether Lore/ARod had the right to not make the payment on 3/27 because the league had not yet approved the deal was at "the heart of their dispute". By the way, does anyone else find it odd that almost two years after the deal was proposed, the NBA has still not approved the deal? What's holding up their approval? I'm guessing there may be some information about Lore and/or Arod they are still investigating, but who knows.

Anyway, we like to predict outcomes here, so based on what we know (or think we know) to date, here is my forecast:

1) The courts will rule that Glen's claim that the Lore group violated the agreement will be tossed out because the NBA had not yet approved the deal. Why would anyone be forced to make a final payment for a deal that might not be approved?

2) After the NBA approves the transfer of ownership (and I think they will...whatever issue out there that has caused them to delay approval will be resolved), Glen will be compelled to complete the sale under the terms of the agreement, and the Lore group will become the new majority owner.

3) Regardless of what happens in the playoffs, the new owners will cut enough payroll (starting with KAT, but it will also likely take more, especially if Ant makes all-NBA) to keep us under the lux tax level...not the second apron, but the lux tax level. If the Wolves do poorly in the playoffs, the new owners will say it's time to blow it up and start over. And if the Wolves do really well in the playoffs (such as make it to the finals or even win a chip), the new owners will feel we have had our fun, and now it's time to be fiscally responsible.

4) If the new owners tell TC he has to cut nearly $30 million in payroll to avoid the lux tax, he will exercise his option and put himself in play to go elsewhere...he certainly will be in demand. Lore has made public comments before that he is willing to do what it takes to bring a championship, and TC likely relied on these comments to decide to come here...he's not going to be happy if Lore forces him to make cuts. But if Glen somehow prevails, I think TC stays.

There's my prediction. I'm obviously now Team Taylor based on the Woj tweet, assuming it's accurate. If new information comes out that shows Woj was dead wrong, I'll probably go back to Team Lore.

Who else wants to go on record?

I think we will find out that Arod/Lore overplayed their hand and were unable to access the funds to satisfy the contract with Taylor.

I think the NBA will stay out of it as Silver said it was a contract issue. That also leads me to believe that the approval wasn't the sticking point.

I think that Glen realized that these guys would be more likely to relocate to make up the additional cash needed to compete.

Glen will put a plan in place for the wolves upon his death, and will have a clause that keeps them in MN through the existing lease.

TC will stay on with assurances from Glen that he will spend for a contender.

Kat stays, but one or both of Naz and McDaniel are traded.

With regard to Glen's fortune and how much he stands to make if selling, it is not that much money. Use the rule of 72 and at a 7% return, the initial 400mil would be worth around 3.2 billion. That being said, I still feel that taxpayers shouldn't be funding any of the venues when you look at what the owners AND players are making.

Arod/Lore have already increased their initial 540 mil investment to around a billion. Not going to shed a tear!

[Wolvesfan21]

I don't think Lore and ARod can truly afford the team. They are both insanely rich by everyone's standards, but being NBA-Owner rich is a horse of a different color.

I predict Glen wins the power struggle and keeps the team.

I predict TC leaves for a more stable situation.

I predict the Wolves make a reasonable trade involving KAT which brings a point guard and draft capital back.

I predict the rest of the team remains mostly intact except for some free agents like NAW we won't be able to retain.

I predict we make the WC finals this year, losing to the Nuggets in game 7 of a spirited series.

I predict we remain relevant going forward as a top 4 team in the West

Didn't they basically double their money already on the 40% they officially own though? I mean making a nice 500 million in a couple years isn't exactly nothing (on paper to be fair). I don't buy into they can't "afford to pay lux tax" and that spiel either. We don't have hard figures on how much the team is making/losing after all revenue and expenses. Considering the value has gone up tremendously I would assume the franchise is really quite profitable right now. That means yes they can likely afford to go into the second apron, either way. Not even counting the 500 million in profit they already made in a couple years. lol

Now are Lore/ARod like the GSW owners rich? No. It doesn't mean the team can't still in the end make money and still pay a big chunk in lux tax too AND still be profitable. I just don't think the value of a business goes up THAT much if it loses money. That doesn't make sense in the most basic terms.

As far as what actually happened. I believe the paperwork and financing was approved and in on time. Now did Glen actually receive his money in his account by then. That is his sticking point, and the fact he said he has sellers remorse since the team is great and making money. lol

[Coolbreeze44]

I don't think Lore and ARod can truly afford the team. They are both insanely rich by everyone's standards, but being NBA-Owner rich is a horse of a different color.

I predict Glen wins the power struggle and keeps the team.

I predict TC leaves for a more stable situation.

I predict the Wolves make a reasonable trade involving KAT which brings a point guard and draft capital back.

I predict the rest of the team remains mostly intact except for some free agents like NAW we won't be able to retain.

I predict we make the WC finals this year, losing to the Nuggets in game 7 of a spirited series.

I predict we remain relevant going forward as a top 4 team in the West

Didn't they basically double their money already on the 40% they officially own though? I mean making a nice 500 million in a couple years isn't exactly nothing (on paper to be fair). I don't buy into they can't "afford to pay lux tax" and that spiel either. We don't have hard figures on how much the team is making/losing after all revenue and expenses. Considering the value has gone up tremendously I would assume the franchise is really quite profitable right now. That means yes they can likely afford to go into the second apron, either way. Not even counting the 500 million in profit they already made in a couple years. lol

Now are Lore/ARod like the GSW owners rich? No. It doesn't mean the team can't still in the end make money and still pay a big chunk in lux tax too AND still be profitable. I just don't think the value of a business goes up THAT much if it loses money. That doesn't make sense in the most basic terms.

As far as what actually happened. I believe the paperwork and financing was approved and in on time. Now did Glen actually receive his money in his account by then. That is his sticking point, and the fact he said he has sellers remorse since the team is great and making money. lol

The point is Lore and ARod couldn't buy the team on a single transaction. They had to draw it out over many months. And then with Woj's report it begins to make sense that they don't have the horsepower of a traditional NBA ownership. They will surely make a lot of money when they sell their stake, but that doesn't mean they have the daily operating capital to live over the 2nd apron.