A deal involving private equity firm Carlyle that would have helped finance a purchase of the T'Wolves by Alex Rodriguez and Marc Lore has now fallen through, though the NBA did not deny the firm's proposed investment. Carlyle initially "agreed to invest via a structured financing" at around a $2.3B valuation, but that deal "was contingent on approval by the NBA." The two sides "reached a stalemate in negotiations" around two weeks ago, with a source saying "something else in the firm's vast portfolio ran afoul of its institutional ownership rules" ( AXIOS, 3/19 ). Finalizing the deal "remains unclear" with a deadline of March 27 looming. That deadline is an extension of a previous date and "indicates the challenge the buyers have experienced in raising capital" needed for the takeover. About $600M is needed to make the final payment. The NBA will have a final call on approving the sale "even if the Lore and Rodriguez group meet their final payment obligation." If the league isn’t convinced the new owners can meet operating obligations with their finances, approval won’t be granted ( SHAMA SPORTS HEADLINERS, 3/19 ).
A-Rod, Lore lose Carlyle backing for T'Wolves deal
