The arbitration hearing to decide the Timberwolves’ ownership dispute began on Monday and is expected to last most of the week. The decision by the three-person arbitration panel is expected to be announced next month, according to ESPN’s Brian Windhorst . The dispute between minority owners Marc Lore and Alex Rodriguez and principal owner Glen Taylor moved to arbitration in July.
A one-day mediation in the spring failed to make any progress, according to Windhorst. The dispute has been ongoing since the tail end of last season. Taylor nixed the previous tiered payment agreement with Lore and Rodriguez, citing a breach of contract.
Lore and Rodriguez disputed that characterization, stating that they had the funds necessary to become majority owners but were awaiting NBA approval and should have been entitled to an extension. The third payment in dispute would increase Lore and Rodriguez’ share from 36% to about 80% and the purchase agreement stipulates that they could buy out Taylor’s remaining 20% stake anytime before March 2025. Windhorst and The Athletic’s Jon Krawczynski provided more details of the process: If the arbitration panel rules in Taylor’s favor, the process essentially ends.
Lore and Rodriguez could remain as limited partners or try to sell their shares. Taylor would have to approve the sale of their shares, according to Krawczynski. However, if Lore and Rodriguez get a favorable ruling.
Taylor would be contractually compelled to sell them the cont.
