Purple Buyer Holdings LLC, et al. v. Taylor Sports Group, Inc. et al.

Analysis Group was retained by Wachtell, Lipton, Rosen & Katz on behalf of Purple Buyer Holdings, an investor group led by Alex Rodriguez and Marc Lore, and the claimant in a breach of contract arbitration matter against Glen Taylor and Taylor Sports Group, then-controlling owners of the Minnesota Timberwolves and Lynx basketball teams. Purple Buyer entered into a contract with Taylor Sports Group to acquire majority controlling ownership of the two teams via a series of call options. After Purple Buyer acquired a 40% stake pursuant to this agreement, Taylor announced that the remaining options had allegedly expired, citing breaches of the agreement. Purple Buyer initiated arbitration, seeking specific performance and damages.

An Analysis Group team led by Managing Principals Michael Cliff and Gaurav Jetley and Manager David Thompson supported Rodney Fort, professor emeritus of sport management at the University of Michigan, who submitted an expert report on damages and valuation.

An American Arbitration Association panel ruled in favor of Purple Buyer and directed the parties to close the control transaction pending approval from the National Basketball Association’s Board of Governors, which was unanimously granted.