Bill Simmons discusses the impact of NBA expansion rumors on Alex Rodriguez’s unsuccessful attempt to acquire ownership of the Timberwolves.
Bill Simmons, of The Ringer, may not be as sharp with his sports predictions these days, particularly with NFL forecasts or his overly biased NBA opinions. Nevertheless, his continued insider knowledge of the NBA world and his enthusiasm for the business side of professional basketball remain intact. This is why when Simmons provides insights into why Minnesota Timberwolves owner Glen Taylor halted the sale of the franchise to Alex Rodriguez and Marc Lore, it’s worth paying attention.
The Timberwolves sale between Taylor and a group led by Alex Rodriguez and Marc Lore collapsed, according to Taylor, because the buyers missed the deadline to provide the required funds. However, there appear to be other factors at play.
Initially agreed upon at $1.5 billion in 2021, the sale of the T’Wolves and Minnesota Lynx was set to conclude in 2024, allowing Taylor more time as owner and giving Rodriguez and Lore time to secure the necessary funds. Over the intervening years, NBA franchise values have continued to soar, potentially doubling the team’s worth.
Moreover, there’s been ongoing speculation, as suggested by Bill Simmons and others, about the NBA’s impending expansion, which could lead to substantial windfalls for team owners. Simmons suggests that Taylor’s decision to delay the sale could be influenced by the anticipation of this sizable payout.
Simmons highlighted the potential magnitude of expansion fees, estimating them at around $9 billion for two teams, resulting in a $300 million cash payment to each owner. Unlike revenue from media rights, ticket sales, or championship winnings, expansion fees go directly into the owners’ pockets without any sharing with players.
This unique influx of funds could explain why team owners, including Taylor, might delay selling their franchises until after receiving this substantial expansion check.
