Let's say DLO gets shopped around and there is literally no good trades to be made. If the Wolves and DLO entered into a buyout at lets say $10 million below his current salary, how would that affect the Wolves cap space to spend on free agents?
For instance, I saw this blurb re the Wolves salary cap situation: The Wolves are in decent salary cap shape this offseason. They sit almost $30 million under the luxury tax with the non-taxpayer midlevel exception ($10.2 million) at their disposal, a $4 million bi-annual exception, and a $4.75 million trade exception that expires at the end of June to work with.
If the hypothetical buyout occurred, would the Wolves have another $10 million to pursue free agents in addition the the various exceptions above?
Salary Cap Question re Hypothetical Buyout
Re: Salary Cap Question re Hypothetical Buyout
KG4Ever wrote:Let's say DLO gets shopped around and there is literally no good trades to be made. If the Wolves and DLO entered into a buyout at lets say $10 million below his current salary, how would that affect the Wolves cap space to spend on free agents?
For instance, I saw this blurb re the Wolves salary cap situation: The Wolves are in decent salary cap shape this offseason. They sit almost $30 million under the luxury tax with the non-taxpayer midlevel exception ($10.2 million) at their disposal, a $4 million bi-annual exception, and a $4.75 million trade exception that expires at the end of June to work with.
If the hypothetical buyout occurred, would the Wolves have another $10 million to pursue free agents in addition the the various exceptions above?
They would actually have less money to sign FAs. If a team operates below the cap you have no exceptions* to work with plus the Wolves would have to renounce Prince so they wouldn't have his Bird rights for this offseason.
*The exceptions are exceptions because they allow you to sign players while being Over the cap. If the Wolves were able to drop 10 million under the cap there would be 3 less exceptions they would be able to use to sign FAs. Mid-level, Bi-annual and Bird Exceptions. This is why most teams unless they can get way under the cap or maybe just a few million under and are basically just looking to absorb salaries will look to operate over the salary cap.
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Camden [enjin:6601484]
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Re: Salary Cap Question re Hypothetical Buyout
I want to start with the very firm assumption that D'Angelo Russell is not going to walk away from $10-million this year -- or the total amount of his $31-million guaranteed for the upcoming season. There is, quite literally, zero benefit for him or his agency in doing so and I wouldn't hold my breath wishing for this scenario to play out, respectfully.
However, I will play along with the hypothetical scenario and try to answer the question. The NBA salary cap is set at $122-million for the upcoming 2022-23 season. Currently, the Minnesota Timberwolves have $119.5-million in player salaries for next year. That does not account for the $2.5-million salary for the 19th overall pick in the draft -- or any other draft pick that the Wolves may add to the roster. Essentially, Minnesota will be operating as a team over the cap immediately after the draft.
This means that the Wolves will have all of their exceptions at their disposal and approximately $27-million under the luxury tax threshold to work with. They still need to make decisions on Taurean Prince, Jaylen Nowell, and Naz Reid. They should also explore adding a quality big in free agency. That's where that money should be allocated.
With that said, if they were to agree to that buyout with Russell, which again is extremely unlikely, they would have $21-million in dead salary. Depending on the order of events and if Minnesota made any moves prior to the buyout, it's probable that they wouldn't have any added salary cap space. They'd just be paying Russell $21-million to play elsewhere.
If they were to agree to the buyout before any other move was made, theoretically, they would have $10-million in cap space, but because they would then be under the cap they would have to renounce all of their cap holds or else they'd count against their total cap leaving them with no cap space. Order of events would become extremely important.
The short answer is that there's many ways that a buyout of that magnitude could blow up in Minnesota's face and very few in which they would actually benefit from it.
However, I will play along with the hypothetical scenario and try to answer the question. The NBA salary cap is set at $122-million for the upcoming 2022-23 season. Currently, the Minnesota Timberwolves have $119.5-million in player salaries for next year. That does not account for the $2.5-million salary for the 19th overall pick in the draft -- or any other draft pick that the Wolves may add to the roster. Essentially, Minnesota will be operating as a team over the cap immediately after the draft.
This means that the Wolves will have all of their exceptions at their disposal and approximately $27-million under the luxury tax threshold to work with. They still need to make decisions on Taurean Prince, Jaylen Nowell, and Naz Reid. They should also explore adding a quality big in free agency. That's where that money should be allocated.
With that said, if they were to agree to that buyout with Russell, which again is extremely unlikely, they would have $21-million in dead salary. Depending on the order of events and if Minnesota made any moves prior to the buyout, it's probable that they wouldn't have any added salary cap space. They'd just be paying Russell $21-million to play elsewhere.
If they were to agree to the buyout before any other move was made, theoretically, they would have $10-million in cap space, but because they would then be under the cap they would have to renounce all of their cap holds or else they'd count against their total cap leaving them with no cap space. Order of events would become extremely important.
The short answer is that there's many ways that a buyout of that magnitude could blow up in Minnesota's face and very few in which they would actually benefit from it.
Re: Salary Cap Question re Hypothetical Buyout
Thanks Monster! This is good to know. Was hoping there would be a way to free up more cap space and open up another roster space if the team decides to move on from DLO, but I think we'll probably be stuck with DLO at least thru the trade deadline as I have not heard of any team likely to offer a positive overall return for him (except if the Knicks can't sign Brunson or find another point guard via trade (Sexton's and Brogdon's names have come up) or want to turn the reigns over to a rookie point guard they trade up for (Ivey or Daniels).
I hope the Wolves use their MLE on the best big(s) they can sign if and the other exceptions on a veteran point guard like Delon Wright or Cory Joseph (Tyus is probably too expensive) and add someone who can play small forward (Gary Harris, Otto Porter, Kyle Anderson, Caleb or Cody Martin, Bruce Brown) or resign Prince on a one year deal.
I hope the Wolves use their MLE on the best big(s) they can sign if and the other exceptions on a veteran point guard like Delon Wright or Cory Joseph (Tyus is probably too expensive) and add someone who can play small forward (Gary Harris, Otto Porter, Kyle Anderson, Caleb or Cody Martin, Bruce Brown) or resign Prince on a one year deal.
Re: Salary Cap Question re Hypothetical Buyout
KG4Ever wrote:Thanks Monster! This is good to know. Was hoping there would be a way to free up more cap space and open up another roster space if the team decides to move on from DLO, but I think we'll probably be stuck with DLO at least thru the trade deadline as I have not heard of any team likely to offer a positive overall return for him (except if the Knicks can't sign Brunson or find another point guard via trade (Sexton's and Brogdon's names have come up) or want to turn the reigns over to a rookie point guard they trade up for (Ivey or Daniels).
I hope the Wolves use their MLE on the best big(s) they can sign if and the other exceptions on a veteran point guard like Delon Wright or Cory Joseph (Tyus is probably too expensive) and add someone who can play small forward (Gary Harris, Otto Porter, Kyle Anderson, Caleb or Cody Martin, Bruce Brown) or resign Prince on a one year deal.
The Bi-annual exception is like 4 million so Wright isn't going to sign for that little. There are some guys on your wing list that might be options for that much or less.
I can't remember who it is on the Talk North podcasts Jim Souhan or Jeff Diamond or Roy Smalley that say GMs often don't make deals until they have to and that's often a wise way to operate. It's not always the case but if there is no significant benefit to dealing Russell (player or asset coming back) then just roll with him and make moves next offseason.
The other angle here is the Wolves don't have a clear option other than Russell at Pg right now but here are some various scenarios where a player becomes a longer term piece. Some are definitely long shots but there are a few options. They also need to ne looking to potential replace Beverly (and Beasley) so if a guy just becomes a good rotation guard then that's needed too.
Russell continues to become more of a winning player.
McLaughlin develops into a better player
Bolmaro develops
Nowell becomes a good player
Wright is a long shot but he wouldn't be the first undrafted player that made a significant impact
Draft pick this year
Undrafted FA this year or some other cheap FA that's surprises.
I'm not banking on any of those options working out (a first round draft pick might be reasonable to hope for become infected a legit option) but the Wolves have a number of guys that COULD help at the lead guard position longer term. I'm absolutely not against a Russell trade if there is value but if not I'm cool with playing things out and seeing where we go.
Re: Salary Cap Question re Hypothetical Buyout
monsterpile wrote: I'm absolutely not against a Russell trade if there is value but if not I'm cool with playing things out and seeing where we go.
That's where I'm at too.
The idea was floated in another thread of using the MLE+ on Tyus this summer, even if Dlo isn't traded, and I think that'd be a mistake. I'd much rather use the MLE this summer on a big, and figure out where the Wolves sit at the point after next season.