The Cleveland Cavaliers cannot simply wave a magic wand and bring everyone back. Due to the NBA's draconian new rules, they are likely forced to choose between Ty Jerome and Sam Merrill this summer.
The topic du jour for the Cavaliers over the past few weeks has been their financial situation. It's something that many could see coming, but in the midst of an epic regular season from this Cavs team it was always a background fact. Yes, they were in line to get much more expensive, but they were also really good.
Each step along the way that increased their future costs was important, but didn't feel as heavy in the moment. Trading for De'Andre Hunter committed the team to significant money for next season. Evan Mobley winning Defensive Player of the Year raised his salary significantly. And the Cavaliers' team salary for next season walked up to the second luxury tax apron, waved, and then leapt clear over it.
And now, with a second round playoff disaster sending the team home much earlier than they had hoped, questions of what's next are staring the franchise in the face. And any answer to that question has to be answered in light of the difficult salary situation that the Cavaliers find themselves in.
The Cavaliers are painfully expensive next season
With 11 players under contract, the Cleveland Cavaliers are $11 million over the second luxury tax apron. That is without considering new contracts for unrestricted free agents Ty Jerome and Sam Merrill. Re-signing either would not only send the team even further above that all-important second apron line, it woulld cost the team significantly more in tax payments.
It's fine and dandy to say that owner Dan Gilbert is a billionaire and he should simply "pay up" the extra tax payments, but it's a real decision for anyone to say "this player is worth $10 million this season but he will cost us $60."
The Cavaliers do need to fill out their roster somehow, and they would surely love to bring both Ty Jerome and Sam Merrill. Yet the cost of doing either will be significant and make it more difficult in the future to change, improve or sustain this team.
Cavaliers can't keep Jerome and Merrill
For example, let's say the Cavaliers offer Jerome a new contract in the ballpark of four years and $55 million. They would add his $12 million salary to their books for this season; they are over the second apron anyway, they bite the bullet on the tax charges, and they make a run at the title.
Then next summer, even though the cap goes up the maximum 10 percent, the Cavaliers are still over the second apron as a new extension for Jarrett Allen kicks in. Isaac Okoro and De'Andre Hunter are still on the books, Darius Garland and Donovan Mitchell and Evan Mobley are all on max contracts, and Jerome is adding $13 million or so to that total. The Cavs are still punitively expensive and continue to be hamstrung in making changes to the roster.
Then in year three of Jerome's contract, which would also be year three of the Cavaliers being over the second tax apron, suddenly more penalties are triggered. Their draft pick seven years out will be pushed to 30th no matter their record. That's not a restriction on that year's team, but on a future one. Imagine if the Cavaliers are rebuilding in that year, but instead of the needed lottery pick they pick 30th instead.
If the Cavs do somehow decide to bite the bullet and make a run over the next two seasons, planning to offload salary in year three to avoid the worst hammer coming down, they can't bring back Merrill on top of Ty Jerome. Both played extremely well this past season, and other teams will be looking to use exception money on both. Work out a deal with Jerome, and you wave goodbye to Merrill.
It is likely that Merrill will be less expensive, so they may choose to bring him back and solve their backup point guard need another way. But either way they slice it, they are choosing three paths: bring back Jerome and let Merrill walk, bring back Merrill and say goodbye to Jerome, or let both leave and try to build depth via veteran minimums and second-round picks.
The NBA has put in place their rules to prevent huge market teams with deep pockets like the LA Clippers and Golden State Warriors from circumventing the rules. Instead, they have put in place rules that prevent teams like the Cleveland Cavaliers from keeping together a team they built the right way.
And the result will mean saying goodbye to beloved players who made a career for themselves by playing in Cleveland.