Alex Rodriguez’s deal with an e-commerce mogul to buy the Minnesota Timberwolves for $1.5 billion appears to be in jeopardy — and some insiders claim his split from Jennifer Lopez is at least partly to blame.
Last year, the former Yankees slugger company to buy the NBA franchise teamed up with Marc Lore – the billionaire online retailer who plans to build An eco-friendly city called “Telusa” in the southwestern desert.
A-Rod and Lore were supposed to be equal partners When they made a down payment of $250 million in July 2021 – A cash investment, besides incurring a large part of the debt on the team, its share amounted to 20%, according to sources close to the situation.
However, A-Rod at the time failed to get his full share, leaving Lorre to cover the balance, three sources close to the situation said. As a result, Lore now owns approximately a 13% stake in Timberwolves while A-Rod has collected only 7%.
“Alex and Mark were supposed to be 50/50,” a source in the National Basketball Association said. “Alex can’t come up with his half.”
Now, the terms of the deal require A-Rod and Lore to make the next 20% down payment by the end of the year, and A-Rod is scrambling to raise half of it plus the cash he needs for the down payment, the three sources confirmed.
“I wouldn’t be surprised if A-Rod becomes Lore’s No. 2 follower,” said one of the sources, predicting Lore would end up buying more than half and taking control of the team.
Without confirming or denying that he owns a larger stake in A-Rod, Laure told The Post that the two still make all the decisions together.
“I couldn’t imagine having a better partner. He’s one of my best friends,” Laure said on Monday. “There’s no one else I’d better partner with than Alex.”
A-Rod first teamed up with Lore in a bid to buy the New York Mets in 2020. At the time, A-Rod was dating Lopez – a situation that appeared to play a role in his relationships with Lore, according to sources close to the situation.
“Mark was totally fascinated by the J. Lo thing,” said the source who knows both investors.
A-Rod frequently invited meetings with potential business partners at the couple’s luxury homes in Bel Air and the Hamptons — and Lopez was usually on the premises, according to sources close to the situation.
“You always take your A-Rod’s meeting with J-Lo,” the source said. “She goes in and out of the room in tracksuits.”
“A-Rod has always made it seem like they’re investing as a couple,” the source added.
Lore — who founded Diapers.com and is best known for selling his grocery company Jet.com to Walmart in 2016 for $3.3 billion — and finally A-Rod Mets auction process lost to hedge fund billionaire Steve Cohen, who bought the team in 2020 for $2.4 billion.
Rodriguez, 47, I started dating Lopez In early 2017 and Suggested in 2019 With a 16 karat emerald cut diamond ring It is valued at around $1.8 million. But the two stars broke up and canceled the post In the spring of last year – just a month before J.Lo . debuted She rekindled her romance with Ben Affleckwho I married in Luxurious wedding This month.
Shortly before the couple called off their engagement, A-Rod and Lore launched their show on Timberwolves — and A-Rod wasn’t well-prepared financially for the split, according to sources.
The A-Rod alone could be priced at $500 million, sources said, but a few are believed to be liquid. Sources said he owns part of a real estate portfolio of tens of thousands of apartments and homes worth a billion dollars, including some properties in the Minneapolis area.
However, the biggest problem may be that A-Rod now lacks J.Lo as he looks to attract co-investors, according to some insiders recently, Rodriguez has been romantically linked to Kathryn Padgett, The 25-year-old is a Dallas-based fitness competitor.
A source who knows A-Rod well believes that “his ability to raise capital has gone from strong to significantly weaker.” “Je if you believe it.”
If A-Rod and Lore can make their next payment by the end of the year, they will have a chance to buy an additional 40% and take control of the team by the end of 2023.
If the pair fails, insiders say Timberwolves owner Glen Taylor won’t be overly disappointed, according to an NBA source. That’s because Taylor believes the team’s value has risen to about $2 billion since the deal was struck, and believes he can make more by starting a new sales process.
Timberwolves did not return calls.
“Glen has been a good partner and we have learned a lot from him,” A-Rod told The Post.
However, it’s not clear that A-Rod could take advantage of the rate he booked. That’s partly because NBA rules wouldn’t allow him to become an owner unless he personally could bill 15% of the total purchase price — roughly $200 million when team debts were factored in — without the help of co-investors.
Meanwhile, if Rodriguez fails to raise 50% of his stake, he and his teammates could end up pumping money into the team without having a say in the team’s operations.
In such a nightmarish scenario, “you will be a minority for a minority,” warned a source familiar with the situation.
In July 2021, Laure and A. Rudd went on a media tour to promote a new business partnership, VCP Ventures.
“We have a lot of similarities,” A-Rod told Bloomberg TV. “We are both from New York. We both have two daughters. We are both driven by the mission.”
But the only investment that VCP is publishing is a $1.9 million commitment in June 2021 to the online retailer Thoughtful, which provides ways to jot down and remember important events and details, based on the VCP website.
Two sources said it liquidated roughly the same amount, $600 million in pre-tax earnings, when it sold online shopping site Jet.com to Walmart.
today, Laure has invested heavily in food delivery company Wonder, which reportedly raised the money in June at a valuation of $3.5 billion.