The Cavaliers avoided the luxury tax this season when they sent Caris LeVert and Georges Niang to Atlanta at the trade deadline in a deal for De’Andre Hunter, which allowed them to duck below the tax threshold by less than $1MM. According to Jake Fischer of The Stein Line (Substack link), that move was widely viewed as one intended to create financial flexibility for the Cavs going forward, rather than as part of a directive to cut costs.
The Cavaliers’ salary projects to soar well into apron territory beginning in 2025/26, and while the team presumably has some sort of upper limit for how much it’s willing to spend in a given season, Dan Gilbert has been portrayed as an owner who is comfortable paying tax penalties as long as the club is a legitimate contender, according to Fischer.
Despite Cleveland’s second-round playoff exit, the club presumably still views itself as a contender on the heels of a 64-win season, Fischer notes. That means it appears safe to assume the Cavs will operate above the luxury tax line for the foreseeable future, with future repeater penalties pushed down the road by an extra year as a result of avoiding the tax this season.
Here’s more from Fischer:
- Rival teams expect the Rockets to explore trading the No. 10 overall pick in this year’s draft for win-now talent, according to Fischer, who notes that last year’s No. 3 pick Reed Sheppard couldn’t break into Houston’s regular rotation during his first season. People around the league are skeptical the Rockets will be looking to add another lottery-pick rookie to the mix as the club looks to take the next step toward title contention.
- Although the Hawks continue to seek a new head of basketball operations and have arranged interviews with some candidates, there’s still a chance that Atlanta opts not to make an additional hire after dismissing Landry Fields and promoting Onsi Saleh to general manager, sources tell Fischer. There is already reportedly no shortage of executives who have a voice in Atlanta’s personnel decisions, as we detailed last month.
- In addition to reiterating that the Pelicans would be a potential facilitator to watch in the event of a Giannis Antetokounmpo trade request, Fischer points to the Trail Blazers as another team to monitor in that scenario. While New Orleans controls Milwaukee’s 2026 and 2027 first-round picks via swap rights, Portland will be in that position from 2028-30, so if the Bucks want to regain control of their own drafts, they’d have to deal with one or both of those clubs.
- Yaxel Lendeborg, Miles Byrd, Cedric Coward, and Karter Knox are among the prospects testing the draft waters whose decisions are being “eagerly awaited” by NBA teams, Fischer writes. According to Fischer, all four players have multi-million-dollar NIL offers on the table if they return to college, including a $3MM+ offer from Michigan for Lendeborg. They have until May 28 to decide whether to keep their names in the draft pool or withdraw.
- In case you missed it, Fischer reported that there’s a “rising expectation” Myles Turner will re-sign with the Pacers, as we covered in a separate story.