Wolves Cap Situation
Posted: Sun Jun 16, 2019 11:41 am
As we all know, the Wolves have no cap room and there's no realistic way to obtain cap room unless you believe that a team with cap space will trade picks for Teague, Wiggins or Gorgui. So the name of the game for the Wolves at this juncture is avoiding the luxury tax threshold of $132 million.
The Wolves have 9 players under contract for next season for a total of about $110M. One of those salaries, Cam Reynolds, is non-guaranteed. The Wolves also have about $685K on the books for the Cole Aldrich contract stretch. In addition, the Wolves will have about $3.5 million on the books for their 1st round pick (currently a cap hold). Adding the Wolves 1st round pick with no other roster changes would give the Wolves 10 roster players with a total salary (including the non-guaranteed Reynolds) of about $114.2M.
If the Wolves released all their player cap holds, including Tyus, Rose, Deng, etc., the team would be about $18M under the luxury tax threshold with 10 roster players and 4 slots to fill. To fill the remaining 4 roster spots, the Wolves could spend the full $9.2M MLE and the full $3.6M BAE for two players for a total of just under $13M. That would leave the Wolves with about $5M to fill the remaining two or three roster spots with minimum salary players. The minimum salary cap hit is $1.416, so two of those would total about $3M.
If the Wolves sign Tyus to a contract starting at $6M, but release all the other cap holds, then the Wolves would have 11 roster players and be about $12 million under the luxury tax threshold. The Wolves could spend just about all of the $9.2M MLE and still have just enough to sign two minimum-salary players to fill out the roster. One of those two final players could be the Wolves second round pick (#43).
Bottom line is that the Wolves are not in a terrible financial position. If the Wolves take a conservative approach this summer, simply signing their #11 and #43 picks, re-signing Tyus and using their MLE to sign a good rotation free agent with their MLE, the resulting roster should be competitive if Covington is truly healthy. The Wolves won 37 games last season in spite of (1) the major turmoil associated with the Butler fiasco, (2) a mid-season head coaching change, and (3) Covington's injury. Before Covington's injury, the Wolves were actually playing really well. The Wolves during that stretch, immediately following the Butler trade and before Covington went down, were better than a 37-win team. So I see the starting base for the Wolves as at least a 40+ win team. The Wolves should improve from there based on (1) having far more stability than last season, (2) the likely improvement of Okogie and KBD, and (3) the addition of a good rotation player with the MLE.
So I see the Wolves competing for a playoff spot even if their draft picks this week don't contribute much next season. In short, this team can take a long-term patient approach this off-season and still be competitive next season in the first year of KAT's 5-year deal. That means the Wolves can (and should in my view) emphasize upside in their draft selections next Thursday. It also means the Wolves can (and should) resist the temptation to take any shortcuts that involve trading draft picks or young talent like Okogie for older veterans. In other words, no more Butler deals, no more letting a Chauncey Billups go in favor or a Terrell Brandon, etc.
Ideally, I'd like to see the Wolves deal Teague and/or Wiggins this summer if it would bring in more high-upside talent. I'd like to see the Wolves trade up in the draft to get Darius Garland without giving up Okogie or KBD. As an alternative, I'd like to see the Wolves trade down with the Celtics, exchanging the #11 pick for two of the Celtics three first round picks. But I'll be content if the Wolves make two good draft picks next Thursday and then move forward with the development of those two players along with Okogie, KBD, Dario Saric and Cam Reynolds.
The Wolves have 9 players under contract for next season for a total of about $110M. One of those salaries, Cam Reynolds, is non-guaranteed. The Wolves also have about $685K on the books for the Cole Aldrich contract stretch. In addition, the Wolves will have about $3.5 million on the books for their 1st round pick (currently a cap hold). Adding the Wolves 1st round pick with no other roster changes would give the Wolves 10 roster players with a total salary (including the non-guaranteed Reynolds) of about $114.2M.
If the Wolves released all their player cap holds, including Tyus, Rose, Deng, etc., the team would be about $18M under the luxury tax threshold with 10 roster players and 4 slots to fill. To fill the remaining 4 roster spots, the Wolves could spend the full $9.2M MLE and the full $3.6M BAE for two players for a total of just under $13M. That would leave the Wolves with about $5M to fill the remaining two or three roster spots with minimum salary players. The minimum salary cap hit is $1.416, so two of those would total about $3M.
If the Wolves sign Tyus to a contract starting at $6M, but release all the other cap holds, then the Wolves would have 11 roster players and be about $12 million under the luxury tax threshold. The Wolves could spend just about all of the $9.2M MLE and still have just enough to sign two minimum-salary players to fill out the roster. One of those two final players could be the Wolves second round pick (#43).
Bottom line is that the Wolves are not in a terrible financial position. If the Wolves take a conservative approach this summer, simply signing their #11 and #43 picks, re-signing Tyus and using their MLE to sign a good rotation free agent with their MLE, the resulting roster should be competitive if Covington is truly healthy. The Wolves won 37 games last season in spite of (1) the major turmoil associated with the Butler fiasco, (2) a mid-season head coaching change, and (3) Covington's injury. Before Covington's injury, the Wolves were actually playing really well. The Wolves during that stretch, immediately following the Butler trade and before Covington went down, were better than a 37-win team. So I see the starting base for the Wolves as at least a 40+ win team. The Wolves should improve from there based on (1) having far more stability than last season, (2) the likely improvement of Okogie and KBD, and (3) the addition of a good rotation player with the MLE.
So I see the Wolves competing for a playoff spot even if their draft picks this week don't contribute much next season. In short, this team can take a long-term patient approach this off-season and still be competitive next season in the first year of KAT's 5-year deal. That means the Wolves can (and should in my view) emphasize upside in their draft selections next Thursday. It also means the Wolves can (and should) resist the temptation to take any shortcuts that involve trading draft picks or young talent like Okogie for older veterans. In other words, no more Butler deals, no more letting a Chauncey Billups go in favor or a Terrell Brandon, etc.
Ideally, I'd like to see the Wolves deal Teague and/or Wiggins this summer if it would bring in more high-upside talent. I'd like to see the Wolves trade up in the draft to get Darius Garland without giving up Okogie or KBD. As an alternative, I'd like to see the Wolves trade down with the Celtics, exchanging the #11 pick for two of the Celtics three first round picks. But I'll be content if the Wolves make two good draft picks next Thursday and then move forward with the development of those two players along with Okogie, KBD, Dario Saric and Cam Reynolds.