Grading Dean Wade extension with Cavs from all angles

Grading Dean Wade extension with Cavs from all angles: Opportunity cost

Dean Wade was under contract for this season and then was in line to hit unrestricted free agency. By agreeing to an extension now, Wade gets the security of a long-term deal and the Cleveland Cavaliers can count on him being around and at a number that works for them.

The risk of not signing Wade to an extension was twofold. First was that he could leave next summer and sign with another team. The second was that he could play so well this season that signing him next summer was more expensive than the $6.17 million he will average on the extension.

The downside of signing Wade now is that he will count anywhere from $5.7 to that $6.17 million on next year’s cap, decreasing the modest amount of cap space the team has. Keeping Wade’s small cap hold on the books would have given them more flexibility in using that cap space to sign a free agent.

This extension happening means one or more of these things are true. First, the Cavs aren’t planning to use cap space next summer, perhaps because they want to bring back Caris LeVert or Kevin Love. Second, the Cavs are planning a major role for Dean Wade and are worried about his value increasing. Third, the Cavs value Wade well above that $6.17 million number and found the value too good to pass up.

The largest opportunity cost will be the cap space hit next summer, but using their space was always much more likely before the Donovan Mitchell trade. Pursuing another option at small forward will likely be via the mid-level exception now, and they have his backup locked up for a long time to come.

Grade: B-

Overall Grade: B