Cavaliers have a looming Ty Jerome problem that may force him to depart

Their financial hands are tied
Ty Jerome, Cleveland Cavaliers
Ty Jerome, Cleveland Cavaliers | Thearon W. Henderson/GettyImages

Ty Jerome is having a fantastic breakout season.

We have been recording it in a variety of places, including here or here, but the year that Jerome is having is downright shocking given that he looked to be on his way out of the league by the end of last season. A fringe player suffering a full-year injury is usally a death sentence for an NBA career.

To Jerome's credit, he did not give up on himself or his career, and in the process found a way to break through. Despite playing behind a pair of All-Star guard,s Jerome is averaging 12 points per game in only 19.7 minutes per game, hitting 41.7 percent of his 3-pointers and swiping 1.2 steals per game.

Jerome is a gifted secondary playmaker, a solid enough defender not to be a weakness, and can shoot from anywhere. He is confident driving into the paint and has a can't-miss floater. He is the perfect complement to the Cleveland offense and will play a major role in their playoff future. If they win a championship, it's hard to imagine Jerome is not significantly involved.

There is a problem, however. It comes down to the financial realities of the Cavaliers and the rules instituted by the NBA. And they will make it increasingly likely that Ty Jerome will leave the team this summer.

The Cavaliers will struggle to re-sign Ty Jerome

Ty Jerome is on a bargain contract this season, making just $2.56 million in the second year of the two-year, just-over-minimum deal he signed with Cleveland in the summer of 2023. The Cavs have been able to assemble their current team -- including avoiding the luxury tax - in part because of the bargain of Jerome and Evan Mobley, the latter in the final year of his rookie contract.

Unlike Mobley, however, the Cavaliers cannot sign Jerome to a contract extension to lock him down for years to come. Additionally, because he has only been with the team for two seasons, the Cavaliers are not allowed to merely re-sign Jerome for any amount. To do that a team needs full "Bird Rights" and those kick in after three consecutive years without starting a new contract.

The Cavs have "Early Bird Rights" on Jerome, which means they can offer him a contract starting at 140 percent of his current contract (just $3.58 million, far less than his market value) or a deal starting at the average player salary. That second number will be much higher, likely around $14 million.

That number should be in the basic ballpark of the full Non-Taxpayer Mid-Level Exception, which is the most teams without cap space can offer him straight up with a new contract. That should keep the Cavaliers competitive with many other teams. However, if a team with cap space decides to come in with a much larger offer, the reality is that the Cavaliers cannot match it.

There is no moving money around or getting creative - not to offer a larger contract. They are on track to be in the second luxury tax apron, and even if they offload some salary, they can't feasibly unlock cap space.

On the flip side, another team cannot come in and work out a sign-and-trade deal to pay him more than the MLE, either. The Cavs did that when they swooped in and signed Max Strus, working out a sign-and-trade deal to offer him more than the MLE. Such a deal was only legal because Strus was eligible for such a deal with the Miami Heat. Another team can only offer that same $14 million starting salary in a sign-and-trade deal.

The Cavaliers also have to weigh the cost of paying Jerome if they do in fact offer him the full amount. They will be in the second apron without paying Jerome; the cost to pay Jerome another $14 million will be extremely punitive in terms of luxury tax payments, not to mention the difficulty in getting back under the second apron in future seasons as the restrictions pile up.

It will be difficult for Cleveland to navigate the situation. Do they offer the full amount? Do they offer less and risk another team outbidding them? How the team plays down the stretch and what Jerome does in the playoffs will play a factor. No decisions have to be made anytime soon. Yet the looing specter of a difficult situation is there, and it isn't going anywhere.

Schedule