Glen Taylor Confirms He's Negotiating Minority Stake Sale of Timberwolves
Minnesota Timberwolves owner Glen Taylor is in negotiations to sell 30 percent of the franchise to Memphis Grizzlies minority owner Steve Kaplan, according to the Minneapolis Star Tribune's Jerry Zgoda.
The two sides have reportedly agreed to an undisclosed price, but the deal is contingent upon Kaplan selling his interest in the Grizzlies and NBA approval.
"Am I working with him? I am," Taylor said, per Zgoda. "Is it proceeding? The answer is yes. Is it absolutely a deal? No, I can't say I have a deal. I don't want to come out and say I have it done. We're proceeding and I'm satisfied with how it's going."
Yahoo Sports' Adrian Wojnarowski previously reported Kaplan was looking to purchase "an approximate 20 percent stake," in an effort to potentially one day gain a controlling interest in the Timberwolves.
According to Zgoda, "Taylor has said any prospective limited partner must guarantee the franchise will stay in Minnesota if that person or group eventually buys majority interest."
Although the Timberwolves rank 29th out of 30 on Forbes' list of NBA team valuations, they're still worth a large sum relative to what Taylor paid for the franchise in 1995. According to Forbes, Taylor forked over $89 million to purchase the franchise, which is now valued at $625 million.
Considering the Milwaukee Bucks—Forbes' least-valuable team at $600 million—sold for $550 million in April 2014, it wouldn't be surprising to see Kaplan spend more than Taylor's original sale price for the minority stake.
Based on the Timberwolves' trajectory, it's certainly a savvy move by the private equity investor. Minnesota has encountered growing pains over the past two seasons, but with 2014-15 Rookie of the Year Andrew Wiggins and 2015 No. 1 overall pick Karl-Anthony Towns in tow, its stock is trending straight up.
The Timberwolves may still be a year or two away from the playoffs, but if Wiggins and Towns continue on their current trajectories, they should emerge as a postseason staple when the decade draws to a close.
