Luxury tax could force Wolves brass to split fan-favorite Anthony Edwards and team, claims Insider

Minnesota’s ongoing ownership war featuring Glen Taylor vs. Alex Rodriguez and Marc Lore is another interesting wrinkle to their long-term roster decisions.


Luxury tax could force Wolves brass to split fan-favorite Anthony Edwards and team, claims Insider

Karl-Anthony Towns and Anthony Edwards

Brian Windhorst on ESPN’s First Take might have some bad news for Anthony Edwards and the Minnesota Timberwolves. Recently, he discussed their financial situation and expressed concerns about their ability to maintain their current roster. He described the team as heading towards a “financial cliff” due to significant salary increases and luxury tax penalties.

Anthony Edwards’ recent All-NBA selection triggered a supermax extension, which added $40 million to his contract starting July 1st. This bumps his contract from $204.5 million to $245.4 million, placing a heavy financial burden on the franchise. If this negatively impacts the team, it will likely break up the 2024 Western Conference Finals team.

They're headed for basically a financial cliff, okay? Because now that this season is over, Ant Edwards, rightfully so, after making the All-NBA team, just hit the supermax as a four-year player. Congrats to him. He got a $40 million extra bonus on his contract for making All-NBA. That contract starts July 1st… So, when you think about the Wolves, you can't think about whether this team needs to change. You have to think about whether they can afford to keep this team together.
Brian Windhosrt via ESPN First Take
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Karl-Anthony Towns’ contract extension begins next season, with a significant raise to nearly $50 million. Also, Rudy Gobert is eligible for an extension. He will earn $43 million next season, while Jaden McDaniels’ new contract begins next season, adding over $22 million to the payroll for the Minnesota Timberwolves.

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The estimated luxury tax for the Wolves is nearly $50 million, and that’s without their roster being complete yet. Ownership turmoil between Mark Lore, Alex Rodriguez, and Glenn Taylor has complicated the team’s financial planning and decision-making process.

The Timberwolves’ financial situation is a significant challenge as they have to navigate luxury tax implications and ownership disputes. Thus, keeping the current roster together requires careful management and a willingness to pay significant luxury tax penalties, making it a daunting task for the team.

Minnesota Timberwolves future uncertain amid ownership dispute 

The Minnesota Timberwolves ownership dispute is heading to mediation on May 1. Glen Taylor and the Marc Lore and Alex Rodriguez group are in conflict over the sales conditions to assume majority ownership. Lore and Rodriguez dispute Taylor’s claims and want to restore the original agreement.

Lore and Rodriguez made initial payments to purchase 36% of the team and filed paperwork to buy an additional 40% for $600 million. Taylor claimed they missed the deadline but said they couldn’t close the deal due to a lack of NBA approval.

The dispute also involves financial projections that would reduce roster payroll, potentially harming the team’s competitiveness. Lore and Rodriguez’s budget would lower payroll to $171 million next season, below the luxury tax threshold. The team has come a long way, and keeping the team together might result in a championship ring.

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