I agree that that sort of allocation is tough for a mid-market team, but in the Twins' case I don't blame the front office for that. It was Joe Pohlad who signed off on the Correa contract and Lopez extension, only to do all his "right-sizing" nonsense a few months later. You can't say he was forced into it by the TV situation because those issues were known well before those contracts were signed.
Since I highly doubt Falvey went rogue in signing these contracts given that he's been granted more power within the organization since they were signed, one of two scenarios must be true:
1. The coming reduction in payroll was known to Falvey, and ownership was in full agreement with signing these contracts anyway
2. The coming reduction in payroll was not known to Falvey, and ownership pulled the right-sized rug out from under him.
Personally, I lean more toward scenario 2. But either way, it's on the nepo-owner