The Cleveland Cavaliers are now in the thick of navigating the post-LeBron James world. First up on their list should be to re-sign James Harden, but there are some things to consider in that regard. Most notably, perhaps, is the Cavaliers’ $10 million Lonzo Ball TPE. If they can get Harden to sign for less than $30 million in his first year, they could use that TPE and still remain under the second apron.
Having a $10 million trade exception to use could really help the Cavs bolster their depth. The Mario Hezonja signing puts them at around $35 million below the second apron. So a Harden contract worth $25 million would give them effectively the entire $10 million TPE to use while still remaining below the second apron.
The question is, would Harden be willing to take a pay cut in order to help the Cavs improve their chances at winning a championship next season?
James Harden pay cut could help Cavaliers' financial flexibility
Right now, it’s relatively unclear what type of deal Harden is going to be looking for in free agency. He was already willing to wait on an extension to see if James decided to sign with the Cavs first, but now, all bets could be off.
Taking a pay cut for James is very different than taking a pay cut for a $10 million TPE. But the mere fact that Harden was willing to consider it is noteworthy for the Cavaliers.
Something along the lines of a three-year, $75 million deal would be an absolute steal for the Cavs. They could use the $10 million TPE and would be in a much better spot moving forward, too.
However, something closer to the average annual value of $30 million per season (or more) seems likely. Maybe two years, $60 million, or even three years, $90 million. The lower the value, the more usable the $10 million TPE is.
Who could Cavaliers use $10 million TPE to trade for?
An important question to ask is, who could the Cavaliers even go out and get with a TPE of just $10 million? Are there even any valuable players out there?
Old friend Ty Jerome is one of the first names that comes to mind, as he’ll make $9.2 million this upcoming season. Harden would have to take around $25 million a year to make that happen, though.
The same can be said for Jalen Smith of the Chicago Bulls, who would be a valuable backup power forward and center. He makes $9.4 million next year.
Some cheaper options like Miles McBride ($3.9 million but on an expiring), Dalton Knecht ($4.2 million), and Svi Mykhailiuk ($3.8 million) are cheaper and would allow Harden to sign for more.
Any of those guys would fit into the Cavaliers’ TPE, and Harden’s next contract could give them the flexibility to use it while staying under the second apron.
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