Naz Reid returning to Timberwolves on three-year deal worth $42 million

The Timberwolves crossed off one of their major questions in free agency on Sunday in agreeing with center Naz Reid on a new three-year contract worth $42 million, a source confirmed.

Reid, who figured to draw strong interest on the free-agent market, is getting his first significant payday after playing for near the minimum in his first four seasons as an undrafted free agent out of Louisiana State.

Other teams might have been able to offer Reid a starting job, but few would have been able to pay the 23-year-old more than their midlevel exception, which is just north of $12 million per season. The Wolves were able to sign Reid to a deal worth $14 million annually because they controlled his Bird Rights, which allow teams to spend over the salary cap to keep their players.

The deal includes a player option for the third season, a source said, which means Reid could seek another lucrative payday in two years.

Likely helping the Wolves come to an agreement with Reid was the increase of the league's luxury tax threshold this week. The NBA originally projected it to be around $162 million but increased that to $165 million, likely giving the Wolves a little more wiggle room in negotiations with Reid. Reid told the Star Tribune recently that he wanted to see what was out there for him in free agency in terms of salary and opportunity.

"I just want to be put in the best fit," Reid said last week. "Obviously money plays a part, but I definitely want to be able to develop in a situation where I'm used to the best of my abilities."

There was a strong bond between him and the Wolves organization, the team that signed him and developed him. Reid is also good friends with multiple members on the team including Anthony Edwards and Jaden McDaniels, who he said were campaigning hard for him to stay.

"As the time goes on, the years go by, you look for a higher role, better situations than you were in if you've obviously outgrown them," Reid said on June 15. "So, I would love to stay back in Minnesota, but it's just like we got to find a position for it."

Even with centers Rudy Gobert and Karl-Anthony Towns on the roster, the Wolves and President Tim Connelly pledged Reid would have a significant role. Reid has steadily developed each of his four seasons in the league, especially on offense. He averaged a career-best 11.5 points and 4.9 rebounds per game.

Even when Towns returned from a right calf injury, Reid was still a big part of the rotation and was playing some of the best basketball of his career before a left wrist fracture ended his season on March 29. In the eight games before the injury, he averaged 18.1 points in 21.7 minutes per game.

Those are the kind of minutes the Wolves envision for Reid. Reid said he no longer has a cast on his surgically repaired wrist and has been working out at the Wolves facility, a sign that underscored his desire to be back throughout the negotiating process. Talks had always remained amicable even as Reid wanted to see what was on the open market.

The Wolves will have salary cap and luxury tax decisions to make likely next season when Edwards and McDaniels are due to have large extensions come on the books, but for now, they have locked up a significant rotation piece for next season. But the Wolves could bring back a large part of their roster while staying under the luxury tax line for next season even with Reid's new deal in place. Still, they will be hovering near it, and it could have a trickle-down effect on the rest of the roster.

The next dominoes to fall for the Wolves in free agency will be the statuses of restricted free agent guard Nickeil Alexander-Walker, who had a strong postseason, especially on defense, and reserve forward Taurean Prince, one of the team's vocal leaders. The team must decide this week whether to pick up Prince's option worth nearly $7.5 million.

The negotiating period for NBA free agency begins Friday.

Last week, Reid expressed excitement at the thought of becoming a free agent. But he also said he was tired of the process and the uncertainty.

"You want to do what's best for you, your family and any situation that's out there," Reid said. "I've been nervous, excited. I just don't know what to expect. Well, I do. But I don't at the same time. I'm ready for this to be over with."

On Sunday, it was finally over.