Timberwolves changing controlling owners again in $4.5 billion deal

The Timberwolves are undergoing another ownership change, barely a year after Marc Lore and Alex Rodriguez finally gained control of the franchise.

Marc Stad is purchasing a majority stake in Minnesota from Lore at a $4.5 billion valuation, according to Shams Charania of ESPN.

Stad, the founder and managing partner of Dragoneer Investment Group, already owns a minority stake in the Timberwolves and has been involved in organizational decisions. Jon Krawczynski of The Athletic notes that Dragoneer manages more than $35 billion in assets.

Rodriguez isn’t going anywhere. Charania reports the former MLB star will remain part of the ownership group and actually increase his equity stake. Krawczynski adds that Rodriguez is expected to serve as the group’s more public-facing representative and spend significant time in Minnesota.

Stad’s wife, Elisa, will become the Timberwolves’ governor, allowing her husband to remain heavily involved with Dragoneer.

Lore will retain a stake but is stepping back as he focuses on Wonder, his food delivery and takeout business, which he plans to take public.

The change comes just 14 months after Lore and Rodriguez completed their long-running purchase of the Timberwolves from Glen Taylor. Their original agreement, reached in 2021, valued the franchise at $1.5 billion.

Lore reportedly had opportunities to sell at a valuation exceeding $4.5 billion but preferred Stad because of their existing relationship and the continuity it provides.

Stad also intends to keep the Timberwolves in Minnesota long-term, with plans for a new arena still moving forward.

Interestingly, this is the second sudden NBA ownership change this month. Mark Walter recently agreed to sell his controlling interest in the Lakers to Bob Iger and Josh Kushner less than a year after taking control himself.

Apparently, August isn’t just trade season anymore. It’s sell-your-NBA-team season, too.