Timberwolves luxury-tax bill skyrockets with NBA Draft move

In the lead-up to Wednesday's NBA Draft, the Timberwolves already had $196 million committed in salaries for the 2024-25 season, making them one of five teams projected to be over the NBA's second-apron luxury tax threshold. For a historically low-spender (relative to big-market teams), Minnesota was already treading uncharted waters with its payroll.

Then, Timberwolves front-office head Tim Connelly pulled out the biggest shocker of draft night by grabbing the eighth pick from the Spurs to select highly touted Kentucky guard Rob Dillingham.

The ramifications of the move?

Minnesota's luxury tax bill for 2025 shot up by nearly $30 million.

Historically, an additional lottery pick ($6.2 million cap hold) wouldn't have affected a team's luxury tax bill as much, but the new CBA rules are merciless to teams in the second apron, restricting their ability to retain their own free agents. Minnesota can pay its free agents – Kyle Anderson, Monte Morris and Jordan McLaughlin – only on minimum contracts and faces the risk of losing them. Furthermore, the team runs into certain limitations with trade transactions that lesser-spending teams don't have to worry about.

As such, the Timberwolves' ideal way to add roster depth was through the draft, which they did expertly. After drafting Dillingham, Connelly explained the thought process behind the move.

"I don't how we can add this level of talent via trades unless we want to give up core guys. I don't know how," Connelly said , via Timbwerwolves beat writer Dane Moore. "So, yeah i think we're still learning (the impacts of the second apron) and we don't know exactly what it looks like... I can't think of any time that you can get that high without losing a core piece."

Connelly also confirmed that Dillingham would be in the rotation immediately, which is typically not the norm for rookies on title contenders.

Fresh off their first conference finals appearance in decades, the Timberwolves seem hungry for more postseason success. That their embattled ownership situation hasn't hindered their spending is a positive sign for Anthony Edwards and the title-starved Timberwolves fanbase.