Hogan Lovells and Wachtell, Lipton, Rosen & Katz are positioned against each other in the dispute over the ownership of the Minnesota Timberwolves basketball team, a reflection of their growing reputation in sporting deals. This year, these law firms contributed to the successful conclusion of two significant sports deals.
William Savitt, a seasoned litigator and co-chairman of Wachtell’s executive committee, is aiding former baseball player Alex Rodriguez and entrepreneur Marc Lore in their quest to finalize a $1.5 billion acquisition of the NBA franchise.
On the other hand, Glen Taylor, the current owner of the team, has employed William Regan, a litigation associate at Hogan Lovells, to assist in resolving the unfolding dispute.
Both firms had roles this year in the $1.7 billion sale of baseball’s Baltimore Orioles and a $3 billion investment in the PGA Tour. Hogan Lovells recently represented the owner of the NHL’s Tampa Bay Lightning in two substantial transactions, strengthening its position in the sports law arena.
Similarly, Wachtell also expanded its profile in the sports law sector, having previously advised Michael Jordan on his approximately $3 billion sale of a controlling stake in the NBA’s Charlotte Hornets. In another noteworthy role, the firm managed an internal probe of the Phoenix Suns, which preceded the massive $4 billion sale of the Suns and the WNBA’s Phoenix Mercury.
The representation of professional sports clients, although a small proportion of substantial law firms’ practice, can offer enhanced visibility and marketing benefits, considering the publicity and fanbase associated with these teams.
The Minnesota Timberwolves ownership saga is unfolding as the team is in the middle of a successful playoff run. Given the increasing profile of sports law practice and the public attention on sports franchise deals, the outcome of this case is eagerly anticipated.
Both parties involved in the Timberwolves disagreement are on the path towards arbitration, which could potentially resolve their differences. A three-member panel might be selected as early as this week, following a failed mediation attempt earlier this month.
Rodriguez and Lore, who currently own a 40% stake in the Timberwolves and the WNBA’s Minnesota Lynx, have been under scrutiny for failing to secure an additional 40% stake by the financing deadline set by Taylor. Their inability to secure this additional stake has led Taylor to claim rights to maintain control over the teams. However, the Rodriguez and Lore contend that Taylor is suffering from seller’s remorse and is attempting to backtrack on the deal.
Ultimately, it remains to be observed how the arbitration process unfolds and who will gain control over the Minnesota Timberwolves. Regardless of the outcome, the case highlights the notoriety of Hogan Lovells and Wachtell, Lipton, Rosen & Katz in representing high-stakes sports deals.