Marc Lore and Alex Rodriguez winning their ownership battle with Glen Taylor came as exciting news for the franchise. As new owners, they promised a ‘winning culture’. More importantly, they want to serve the fans and have already identified some ways to do so. But at the end of the day, business is important too. That comes with making some hard decisions.

The duo recently did so. According to Sports Business Journal, Lore and A-Rod laid off an estimated 40 employees from business operations. Nobody in the roster-building departments of both the Lynx and the Timberwolves was affected. Rather, the Lynx’s employees didn’t suffer much.

The major layoffs occurred between the Timberwolves and the Iowa Wolves. As per the report, 10% of the staff who crossed over the three teams were relieved of their duties. It raises a significant question. Why did the new owners decide to tailor their team?

Coming off paying a large $90 million sum in tax payments last season, the Timberwolves and Lynx could have used cost-cutting initiatives. However, that wasn’t the purpose behind these recent firings.

According to sources closer to the owners, it was designed to have the “right roles and talent” to run an efficient organization in the long term. The move emphasises efficiency, something Marc Lore values highly. Sports Business Journal learned that the Wonder Group CEO reduced his workforce by 23% when he acquired the company last January. He did the same with Blue Apron.

Hence, it seems the decision is driven by the desire to have a smooth-functioning organization. Alex Rodriguez and Lore want to run an efficient business which will also be the hiring of a new CEO. Because when it comes to spending money, both of them are willing to do so and more.

Alex Rodriguez and Lore aren’t afraid to lose money

Having made two consecutive Western Conference Finals, Rodriguez and Lore don’t want to interrupt the rhythm. Since taking over ownership in June, their vision has been aligned. They have made it perfectly clear. If they have to pay the tax to house a competitive roster, they won’t think about it twice.

“We think about it like we do a startup, where startups lose money, but they’re investing because it’s creating enterprise value over the long term. And I think that’s the way we think about. It is investing in the team, in winning, creates long-term franchise value. That’s not over the next three to five years, but 10 to 20, the next 50 years, even,” Lore told The Athletic.

That’s already evident.

The Timberwolves did lose Nickeil Alexander-Walker in free agency. However, they secured Naz Reid with a 5-year $125 million extension. Furthermore, solidifying their front court, even Julius Randle saw a new three-year deal to keep him on the Wolves till 2028. Everything that is being done is to build on the Timberwolves’ past success.

Albeit Alex Rodriguez and Marc Lore might be careful not to dive into the second apron again. As things stand, the Wolves are still $5 million below it. But with only 13 players signed, if they do sign two more players, they will most likely trigger the second apron. As repeat offender, they tax bill could be significantly higher than what it was last year.