The arbitration hearing to decide the The wolves of the woods The ownership dispute began Monday and is expected to last most of the week. The decision of the three-person arbitration panel is expected to be announced next month, according to ESPN’s Brian Windhorst.

The conflict between minority shareholders Marc Loré And Alex Rodriguez and main owner Glen Taylor transferred to arbitration in July. A one-day mediation in the spring made no progress, according to Windhorst.

The conflict has been going on since the end of last season. Taylor denied the previous installment payment agreement with Lore and Rodriguez, citing breach of contract. Lore and Rodriguez disputed that characterization, saying they had the funds to become majority owners but were awaiting NBA approval and should have been eligible for an extension.

The third payment in dispute would increase Lore and Rodriguez’s share from 36% to approximately 80% and the purchase agreement states they could buy out Taylor’s remaining 20% ​​at any time before March 2025.

Windhorst and Jon Krawczynski of The Athletic provided more details about the process:

• If the arbitration panel rules in favor of Taylor, the process essentially ends. Lore and Rodriguez could remain limited partners or attempt to sell their shares. Taylor would have to approve the sale of their shares, according to Krawczynski. However, if Lore and Rodriguez get a favorable decision. Taylor would be contractually obligated to sell them the majority share for the previously agreed upon $1.5 billion valuation. The value of the franchise is now significantly higher, which is a major factor in Taylor’s decision to attempt to stop the sale. Lore and Rodriguez would still need 23 of the league’s 30 owners’ votes to complete the acquisition, since all team percentage transfers are subject to a vote, Windhorst notes.
• These transfer rules could present a tricky situation, due to Taylor’s long-standing relationships with the other owners and the commissioner. Adam Silver. There have been many developments behind the scenes due to this possibility, according to Windhorst. Lore and Rodriguez have worked to meet with owners and the league office in recent months to demonstrate their position and try to build support if there is a vote. It is likely that Silver and the BOG chairman Larry Tanenbaum will try to build consensus instead of a vote of owners.
• Lore and Rodriguez consolidated their finances by recruiting billionaires Michael Bloombergthe former mayor of New York, and Eric Schmidtthe former CEO of Google, as well as private equity firm Dyal Homecourt Partners. They amassed $950 million in an escrow account, which is not only the 40% needed to take majority control, but enough to give them 100% ownership of the team.
• The team faces a $100 million luxury tax bill and total operating losses of more than $150 million, according to Krawczynski. This is one of the reasons why the Timberwolves moved Cities of Karl-Anthony in a blockbuster trade with the Knicks.
• Team President Tim Connelly could have opted out of his contract this year, but agreed to postpone his opt-out until next season. He could choose to step down this time, regardless of who is running the franchise at the time.