Minnesota Timberwolves: Does pending sale of Utah Jazz impact the Wolves?

Does the pending sale of the Utah Jazz impact the value of the Minnesota Timberwolves?

The Minnesota Timberwolves have reportedly been available for purchase since the middle of summer. As of yet, nothing has come to fruition.

The Utah Jazz, on the other hand, were somewhat unexpectedly sold. After the Miller family owned them for 35 years, they entered into a purchase agreement with Utahan and tech CEO Ryan Smith last week for a total of $1.66 billion.

That begs the question, does the pending purchase of the Utah Jazz have any impact on the value and eventual sale of the Minnesota Timberwolves?

Does the pending sale of the Utah Jazz impact the Minnesota Timberwolves?

Earlier this year, Forbes valued the Wolves at $1.375 billion. Glen Taylor is reportedly seeking $1.2 billion with the promise that the new owner will not move the franchise out of the Twin Cities.

We had already heard that Tayloor had interested suitors who wanted to buy the Wolves and move them, but now ESPN’s Brian Windhorst has confirmed that on Darren Wolfson’s Scoop Podcast at SKOR North.

So, what’s the deal with the Jazz selling for so much?

Well, a couple of things. First of all, the sale of the team includes Vivint Arena, the G League’s Salt Lake City Stars, and the Salt Lake Bees, a Triple-A baseball team.

That’s a few other assets, and while it’s fair to assume that the Stars and Bees combine to be worth something in the neighborhood of $100 million or less — a drop in the bucket when we’re talking about a deal with north of a billion-and-a-half — it’s unclear how much the arena is worth and how much debt might be on that deal.

That makes it difficult to get a good handle on the true valuation of the Jazz, although Forbes had previously said they were worth $1.55 billion.

Smith, the new Jazz owner, is basically Utah’s version oof who Glen Tyalor would love to find: a native son passionate about the team’s success in it’s home market who is willing to pay market value.

It’s too early to know whether or not the pending sale of the Jazz will have much of an effect on the Wolves’ value and eventual sale, but Windhorst was not optimistic about the Wolves’ value as an asset in the rest of his conversation with Wolfson.

In short, Wolfson lists the Target Cneter as a bottom-10 (and maybe even bottom-five) arena in the league, and the franchise’s track record as a perennial loser doesn’t help.

If nothing else, it’s a good sign that the Jazz sale came together so quickly, and that another mid-market team can fetch market value for the franchise.

Will that happen for the Wolves? Only time will tell.