Report: Wolves have first Chinese minority owner, team now worth $1 billion
The prices for NBA franchises are insane at this point
By
Zach Harper
•
2 min read
Minnesota Timberwolves majority owner Glen Taylor has been looking for two things over the past few years. First, he's been looking for a successor to purchase the majority stake of the Wolves away from him while keeping it in Minnesota. Second, if that majority owner isn't readily available for Taylor's liking, he's been looking for an infusion of cash from minority stakes that will provide long-term stability for Taylor's ownership of the team.
He was looking to bring Memphis Grizzlies' minority owner Steve Kaplan aboard by selling off 30 percent of the team to him with the understanding that eventually Kaplan would have a chance to buy a majority stake. That sale fell through because of some ownership issues with the Grizzlies in Kaplan being able to sell off his shares in that team. So Taylor has brilliantly pivoted and sold off some minority shares to multiple parties, including Lizhang Jiang. That makes Jiang the first Chinese minority owner in league history.
Last week Taylor closed a deal to bring in Lizhang Jiang, a Shanghai-based businessman. Jiang, who founded Chinese marketing company Double-Edge Sports, previously worked with the NBA in China. Earlier this month, Jiang, 35, completed the purchase of Spanish soccer club Granada CF. Lanxiong Sports of China reported that Jiang purchased 5 percent of the Wolves and 5 percent of the Minnesota Lynx.
In addition, Taylor has sold a share of the team to Meyer Orbach, a New York-based real estate magnate.
That's not the only news with the Wolves though in this sale. Windhorst is also reporting the Wolves are worth $1 billion after selling off this small but important portion of the team.
At least twice in the past five years, Taylor has put the Wolves on the market only to later back off and decide to keep the team. This minority-share investment adds stability to Taylor's position. League sources indicate the team is worth about $1 billion.
The Wolves being worth $1 billion seems unbelievable considering the Los Angeles Clippers sold for $2 billion back in 2014. The Clippers, while rarely successful in their team's history, are in one of the biggest sports markets possible. That means the media market can help drive ratings and advertisement sales, which make the $2 billion price tag seem explainable. The Wolves, however, are a middle market team in Minneapolis. The idea of them cracking $1 billion when teams like the Sacramento Kings and Milwaukee Bucks sold for just over half that, respectively, not too long ago shows the skyrocketing value of NBA franchises.
This seems like pertinent information for the Player Association, should a potential and likely lockout end up moving deep into the offseason and begin threatening portions of the season. If the Wolves are worth $1 billion, it will be pretty tough for the league owners to cry that they're losing money, especially after the massive new national television contract has just kicked in.
