Minnesota Timberwolves Face Financial Challenges Amid Ownership Drama
The Minnesota Timberwolves are facing a complex financial situation due to the impending increase in their expenses. The team’s front office is currently dealing with the “good problem” of players deserving significant pay raises, such as Anthony Edwards, whose extension will kick in for the 2024-25 season. Edwards’ All-NBA performance has earned him a maximum contract, which would start at $42.3 million based on the league’s salary cap projection.
However, the Timberwolves already have existing financial commitments to Karl-Anthony Towns and Rudy Gobert, whose contracts will also come into effect next season. Towns’ extension, similar to Edwards’, puts him at the top of Minnesota’s salary table. With Gobert also earning a substantial salary, these three players alone will make approximately $134.5 million next season, just $6.5 million below the projected salary cap.
While the Timberwolves have Jaden McDaniels and Mike Conley on reasonable contracts, with the team’s starting five set to make $167 million next season, it becomes challenging to fill out the roster while staying below the luxury tax line. However, the team’s success in leading the Western Conference and reaching the conference finals may justify the financial burden if ownership is willing to pay.
The decision of whether to pay the luxury tax and how much to spend is ultimately up to ownership. Some teams consider the tax a significant hurdle, while others see it as a minor obstacle. The Timberwolves must determine which camp they fall into and whether their projected level of success justifies the financial investment.
Furthermore, the team needs to consider their long-term financial outlook. Currently, Minnesota’s books for the 2025-26 season are similar to the upcoming season, but with a projected 10% increase in the salary cap due to a new national TV deal. It is possible that the team’s expenses will remain high for two seasons before potential changes occur when contracts expire.
To trim salary without compromising team quality, the Timberwolves may need to make tough decisions, such as potentially replacing Karl-Anthony Towns with Naz Reid as the starting power forward. However, finding suitable replacements for Gobert, Conley, and McDaniels poses a greater challenge. Trading them for financial reasons becomes complicated as most trade partners are not interested in like-for-like deals.
It is worth noting that the NBA calculates the luxury tax at the end of the season, allowing teams to reduce salary in-season without incurring a tax bill. However, recent changes in the collective bargaining agreement have made it more difficult to shed salary during the season. Therefore, keeping the roster intact and remaining below the tax threshold seems unlikely.
The ownership drama surrounding the Timberwolves further complicates matters. It remains to be seen how the change in ownership will affect the team’s willingness to spend. Regardless, the Timberwolves are facing significant financial repercussions and must find a way to navigate their constraints in the coming months.