Alex Rodriguez’s pact with an e-commerce tycoon to purchase the Minnesota Timberwolves for $1.5 billion seems to be in jeopardy — and a few insiders declare his breakup with Jennifer Lopez is not less than partly responsible.
Final 12 months, the previous Yankees slugger teamed as much as purchase the NBA franchise with Marc Lore — the billionaire on-line retail guru planning to construct an eco-friendly metropolis called “Telosa” in the Southwest desert.
A-Rod and Lore had been alleged to be equal companions when they made a $250 million down payment in July 2021 — a money funding that, coupled with the belief of a piece of debt on the staff, amounted to a 20% stake, in line with sources near the state of affairs.
Nonetheless, A-Rod on the time had didn’t provide you with his full share, leaving Lore to cowl the steadiness, three sources near the state of affairs mentioned. Consequently, Lore now has a roughly 13% share within the Timberwolves whereas A-Rod has amassed a mere 7%.
“Alex and Marc had been alleged to be 50/50,” an NBA supply mentioned. “Alex couldn’t provide you with his half.”
Now, phrases of the deal require A-Rod and Lore to make the following 20% fee by 12 months’s finish, and A-Rod is scrambling to lift his half along with the money he wants for the down fee, the three sources confirmed.
“I wouldn’t be stunned if A-Rod turns into a subservient No. 2 to Lore,” a supply mentioned, predicting that Lore may find yourself shopping for greater than half and controlling the staff.
Lore advised The Publish with out confirming or denying that he owns a much bigger stake than A-Rod that the 2 nonetheless make all selections collectively.
“I couldn’t think about having a greater companion. He’s one in every of my greatest associates,” Lore mentioned Monday. “There isn’t any one else I might quite be companions with than Alex.”
A-Rod first teamed up with Lore for a bid to purchase the New York Mets in 2020. On the time, A-Rod was relationship Lopez — a state of affairs that appeared to play a job in forging his ties with Lore, in line with sources near the state of affairs.
“Marc bought fully mesmerized by the J. Lo factor,” the supply who is aware of each each buyers mentioned.
A-Rod often referred to as for conferences with potential enterprise companions on the energy couple’s lavish houses in Bel-Air and the Hamptons — and Lopez was usually on the premises, in line with sources near the state of affairs.
“You at all times took your A-Rod assembly with J.Lo,” the supply mentioned. “She is coming out and in of the room with exercise garments.”
“A-Rod at all times made it seem to be they had been investing as a pair,” the supply added.
Lore — who based Diapers.com and famously offered his grocery startup Jet.com to Walmart in 2016 for $3.3 billion — and A-Rod ultimately lost the Mets auction process to hedge-fund billionaire Steve Cohen, who purchased the staff in 2020 for $2.4 billion.
Rodriguez, 47, began dating Lopez in early 2017 and proposed in 2019 with a 16-carat emerald-cut diamond ring worth an estimated $1.8 million. However the two stars broke up and called off the engagement within the spring of final 12 months — only one month earlier than J.Lo rekindled her romance with Ben Affleck, whom she married in a lavish wedding ceremony this month.
It was shortly earlier than the pair referred to as off their engagement that A-Rod and Lore launched their bid for the Timberwolves — and A-Rod wasn’t effectively ready for the breakup from a monetary standpoint, in line with sources.
On his personal, A-Rod may be value $500 million, however little of it’s believed to be liquid, sources mentioned. He owns a part of an actual property portfolio with $1 billion in tens of hundreds of residences and houses, together with some properties within the Minneapolis space, sources mentioned.
The larger drawback, nevertheless, could also be that A-Rod now lacks J.Lo as he appears to appeal co-investors, in line with some insiders Not too long ago, Rodriguez has been linked romantically with Kathryn Padgett, a 25-year-old, Dallas-based fitness competitor.
“His potential to lift capital went from robust to meaningfully weaker,” believes a supply who is aware of A-Rod effectively. “J.Lo validated him.”
If A-Rod and Lore handle to make their subsequent fee by 12 months’s finish, they’ll then get the possibility to purchase a further 40% and take management of the staff by the tip of 2023.
If the pair fails, insiders say Timberwolves proprietor Glen Taylor received’t be overly upset, in line with an NBA supply. That’s as a result of Taylor believes the worth of the staff has risen to about $2 billion since they struck the deal, and believes he could make extra by beginning a brand new gross sales course of.
The Timberwolves didn’t return calls.
A-Rod advised The Publish, “Glen has been an excellent companion and we have now realized loads from him.”
Nonetheless, it’s not clear A-Rod can money in on the value he’s locked in. That’s partly as a result of NBA guidelines received’t allow him to change into an proprietor until he personally can foot the invoice for 15% of the full buy value — practically $200 million when factoring within the staff’s debt — with out the assistance of co-investors.
In the meantime, if Rodriguez fails to amass a 50% stake, he and his co-investors might find yourself plowing money into the staff with out getting a say within the staff’s operations.
In such a nightmare situation, “You’ll be a minority to the minority,” a supply briefed on the state of affairs warned.
In July 2021, Lore and A-Rod went on a media tour selling a brand new enterprise partnership, VCP Ventures.
“We have now a whole lot of similarities,” A-Rod advised Bloomberg TV. “We’re each from New York. We each have two daughters. We’re each mission pushed.”
However the one funding VCP publicizes is a $1.9 million dedication in June 2021 to Web retailer Considerate, which offers methods to notice and keep in mind essential occasions and particulars, primarily based on the VCP web-site.
He cleared roughly the identical quantity, $600 million in pre-tax positive aspects, when he offered on-line procuring website Jet.com to WalMart, two sources mentioned.
Immediately, Lore has invested heavily in his food delivery startup Wonder, which in June reportedly raised cash at a $3.5 billion valuation.
