NBA salary cap set at nearly $58.7 million

MINNEAPOLIS -- The NBA's salary cap for the 2013-14 season is now set, and the Minnesota Timberwolves still have some work to do in order to finalize their roster.
The league Tuesday night set the cap at $58.678 million and announced a luxury tax level of $71.748 million. The league-wide July Moratorium ended at 11:01 p.m., and draft picks and free agents are allowed to sign contracts, restricted free agents can sign offer sheets from other teams, and front offices know exactly how much financial leeway they have to work with in finalizing their rosters for next season.
Assuming the coming days go as planned for the Timberwolves, their projected total team salary sits right around the cap threshold. That figure includes the four-year deal shooting guard Kevin Martin and Minnesota have agreed upon, the planned re-signing of small forward Chase Budinger to a three-year contract, and the approximate $48 million over four years the Timberwolves reportedly offered to restricted free agent center Nikola Pekovic.
According to multiple media reports that surfaced last week, Martin and Budinger are expected to sign this week (a press conference for Martin slated for Wednesday morning was rescheduled, likely while Minnesota brass converse with other free agents). Pekovic has the option to sign offer sheets from other teams if he pleases, but the Timberwolves can match whatever enticing deals may be out there. Pekovic's salary also won't count against the salary cap, as his three years in the Twin Cities allow the Timberwolves to apply the Larry Bird exception to his contract.
President of basketball operations Flip Saunders has reiterated throughout the offseason that retaining Pekovic, who led the team in scoring last season, is of the utmost importance.
Budinger, too, has Bird rights that came with him when he was traded from Houston. These allow teams to exceed the salary cap by up to a maximum contract amount for each player.
Neither Budinger nor Pekovic is expected to receive a max deal. Even so, Minnesota's expected payroll likely means a sign-and-trade will be necessary to bring in any additional pieces.
Per the rookie pay scale outlined in the league's new collective bargaining agreement, Minnesota will owe first-round picks Shabazz Muhammad and Gorgui Dieng about $1.6 million and $1.1 million. Second-round pick Lorenzo Brown will make at minimum $473,604.
All three selections are expected to sign this week before traveling to Las Vegas with the Timberwolves' Summer League team.
After loading up on perimeter offense by agreeing to terms with Budinger and Martin and drafting Shabazz Muhammad, Minnesota's turned its attention toward a defense-oriented wing. Multiple media outlets Tuesday reported conversations with former Timberwolves swingman Corey Brewer and the Denver Nuggets about a potential sign-and-trade scenario.