The Cleveland Cavaliers spent a lot of money this summer.
They handed James Harden $97 million over the next three seasons. Peyton Watson got $88 million over four. Donovan Mitchell is on a maximum extension that doesn't kick in for another year, paying him $272.7 million on a four-year deal.
That is more than $450 million in new money for just those three players, added onto long-term deals for Evan Mobley and Jarrett Allen already in place. That means that in 2029-29, the Cavaliers already have over $220 million in salaries committed to six players (the starters plus Sam Merrill).
Without factoring in any money for any other players, that is already well over the projected luxury tax line of $194 million. They still need to fill out a roster -- and decide how to pay up and coming players on the roster, particularly someone like Jaylon Tyson.
To compare the Cavaliers' decision-making this summer, they have made the mistakes of the Denver Nuggets, rather than the mistake of the Detroit Pistons.
The Nuggets and Pistons made opposite mistakes
The Cavaliers just signed away Peyton Watson from the Denver Nuggets, a decision made possible because of the financial situation that Denver found itself in. After handing out massive contracts to player after player, they did not have the financial flexibility to keep Watson.
Not only did they give a max deal to Jamal Murray when they had negotiating leverage to get him on a lower deal, but they backed up the truck for Aaron Gordon and Michael Porter Jr. Flipping Porter Jr. for Cam Johnson saved some money, but only so that they could give Christian Braun a five-year, $125 million deal that was questionable at the time and looks like a disaster now. They tried and failed to move Braun to re-sign Watson, a better player; that attempt failed.
The Nuggets are over the second tax apron and forced to make decisions for financial reasons instead of competitive ones. The Cavaliers are likely looking at a picture of their future.
To Denver's credit, their spending did pay off in one way, as they won the title in 2023 around the brilliance of Nikola Jokic and Jamal Murray. Maintaining that contending team has been where their errors have come to play.
The Detroit Pistons are likely going to prevent themselves from reaching that mountaintop.
The other unresolved restricted free agency situation is in Detroit, where All-NBA center Jalen Duren is withering on the vine waiting for a new deal. The Nuggets would have handed him the max and called it a day; the Pistons are negotiating tooth and nail to get him on a bargain deal.
They are also jettisoning rotation players instead of paying them. Tobias Harris left and they brought in John Collins on a short-term deal that can be ended after one year. Kevin Huerter is back on a deal ending with a team option; Isaiah Joe was brought in and similarly can be cut free as early as next summer.
With Duren and Ausar Thompson hurting toward new deals, the Pistons decided to stall their momentum and squeeze their free agents to ensure they are not in financial prison down the line. It also means they are not maximizing the present.
The Cavaliers are paying now to cry later
The Cavaliers are, to their credit, not cheaping out. They are willing to spend to field the best possible team. Dan Gilbert has always written the checks for the talent assembled on the roster, even into the luxury tax. They were the league's most expensive team last season.
Cleveland is also not being careful with the money they hand out. Evan Mobley was given a "Rose Rule" escalator in his contract, then won Defensive Player of the Year and significantly increased his salary. Harden will be making $34 million when he is 39 years old. Mitchell's extension will be one of the worst in the league by the time he completes it.
Whatever you might think of the fit of Harden and the rest of the team, they are paying now to maximize the quality of their team. That is great for the present. It also means that when a player like Jaylon Tyson comes due for a pay raise, they may not be able to pay him.
Is adding Watson and keeping Harden worth losing Tyson? That is a question the Nuggets either didn't think of or answered incorrectly. It's a question the Pistons have, essentially, answered no to.
The Cavaliers are going to try and make it work. They had better hope they win now, because they will have to pay the piper down the road. And the cost might by Jaylon Tyson.
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