Alex Rodriguez’s pact with an e-commerce tycoon to purchase the Minnesota Timberwolves for $1.5 billion appears to be in jeopardy — and a few insiders claim his breakup with Jennifer Lopez is at the very least partly accountable.
Last 12 months, the previous Yankees slugger teamed up to purchase the NBA franchise with Marc Lore — the billionaire online retail guru planning to construct an eco-friendly metropolis called “Telosa” within the Southwest desert.
A-Rod and Lore were speculated to be equal partners once they made a $250 million down payment in July 2021 — a money investment that, coupled with the idea of a piece of debt on the team, amounted to a 20% stake, based on sources near the situation.
Nevertheless, A-Rod on the time had failed to return up along with his full share, leaving Lore to cover the balance, three sources near the situation said. Because of this, Lore now has a roughly 13% share within the Timberwolves while A-Rod has amassed a mere 7%.
Jennifer Lopez and Alex Rodriguez in 2020.Getty Images
“Alex and Marc were speculated to be 50/50,” an NBA source said. “Alex couldn’t come up along with his half.”
Now, terms of the deal require A-Rod and Lore to make the following 20% payment by 12 months’s end, and A-Rod is scrambling to lift his half along with the money he needs for the down payment, the three sources confirmed.
“I wouldn’t be surprised if A-Rod becomes a subservient No. 2 to Lore,” a source said, predicting that Lore might find yourself buying greater than half and controlling the team.
Lore told The Post without confirming or denying that he owns a much bigger stake than A-Rod that the 2 still make all decisions together.
“I couldn’t imagine having a greater partner. He’s one among my best friends,” Lore said Monday. “There is no such thing as a one else I’d quite be partners with than Alex.”
A-Rod first teamed up with Lore for a bid to purchase the Recent York Mets in 2020. On the time, A-Rod was dating Lopez — a situation that appeared to play a task in forging his ties with Lore, based on sources near the situation.
“Marc got completely mesmerized by the J. Lo thing,” the source who knows each each investors said.
Alex Rodriguez and Marc Lore were speculated to be equal partners once they made a $250 million down payment in July 2021. Nevertheless, A-Rod failed to return up along with his full share, leaving Lore to cover the balance.NBAE via Getty Images
A-Rod often called for meetings with prospective business partners at the facility couple’s lavish homes in Bel-Air and the Hamptons — and Lopez was typically on the premises, based on sources near the situation.
“You usually took your A-Rod meeting with J.Lo,” the source said. “She is coming out and in of the room with workout clothes.”
Ben Affleck and Jennifer Lopez in 2022.Getty Images
“A-Rod all the time made it look like they were investing as a pair,” the source added.
Lore — who founded Diapers.com and famously sold his grocery startup Jet.com to Walmart in 2016 for $3.3 billion — and A-Rod eventually lost the Mets auction process to hedge-fund billionaire Steve Cohen, who bought the team 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 price an estimated $1.8 million. However the two stars broke up and called off the engagement within the spring of last 12 months — only one month before J.Lo rekindled her romance with Ben Affleck, whom she married in a lavish wedding ceremony this month.
It was shortly before the pair called off their engagement that A-Rod and Lore launched their bid for the Timberwolves — and A-Rod wasn’t well prepared for the breakup from a financial standpoint, based on sources.
On his own, A-Rod could be price $500 million, but little of it’s believed to be liquid, sources said. He owns a part of an actual estate portfolio with $1 billion in tens of 1000’s of apartments and houses, including some properties within the Minneapolis area, sources said.
The larger problem, nevertheless, could also be that A-Rod now lacks J.Lo as he looks to charm co-investors, based on some insiders Recently, Rodriguez has been linked romantically with Kathryn Padgett, a 25-year-old, Dallas-based fitness competitor.
Jennifer Lopez attends the premiere of “Halftime” on June 8. Jamie McCarthy/Getty Images for Tribeca Film Festival
“His ability to lift capital went from strong to meaningfully weaker,” believes a source who knows A-Rod well. “J.Lo validated him.”
If A-Rod and Lore manage to make their next payment by 12 months’s end, they may then get the prospect to purchase a further 40% and take control of the team by the tip of 2023.
If the pair fails, insiders say Timberwolves owner Glen Taylor won’t be overly dissatisfied, based on an NBA source. That’s because Taylor believes the worth of the team has risen to about $2 billion since they struck the deal, and believes he could make more by starting a recent sales process.
The Timberwolves didn’t return calls.
A-Rod told The Post, “Glen has been partner and we now have learned so much from him.”
Nevertheless, it’s not clear A-Rod can money in on the worth he’s locked in. That’s partly because NBA rules won’t permit him to develop into an owner unless he personally can foot the bill for 15% of the full purchase price — nearly $200 million when factoring within the team’s debt — without the assistance of co-investors.
Meanwhile, if Rodriguez fails to amass a 50% stake, he and his co-investors could find yourself plowing money into the team without getting a say within the team’s operations.
In such a nightmare scenario, “You will likely be a minority to the minority,” a source briefed on the situation warned.
In July 2021, Lore and A-Rod went on a media tour promoting a recent business partnership, VCP Ventures.
A-Rod is scrambling to return up along with his share of the cash to be equal partners with Marc Lore in owning the Timberwolves, sources said.NBAE via Getty Images
“We’ve a number of similarities,” A-Rod told Bloomberg TV. “We’re each from Recent York. We each have two daughters. We’re each mission driven.”
However the only investment VCP publicizes is a $1.9 million commitment in June 2021 to Web retailer Thoughtful, which provides ways to notice and remember necessary events and details, based on the VCP web-site.
He cleared roughly the identical amount, $600 million in pre-tax gains, when he sold on-line shopping site Jet.com to WalMart, two sources said.
Today, Lore has invested heavily in his food delivery startup Wonder, which in June reportedly raised money at a $3.5 billion valuation.