This offseason, teams offered the first glimpse into the new reality of the Collective Bargaining Agreement. After a summer of trades, shocking stars being waived and contract negotiations, the Cleveland Cavaliers remain the only team above the second apron.
Cleveland is sitting over $20 million above the second luxury tax threshold, impeding their avenues for trades, free agency and future draft assets if they remain above the apron line year after year. Three Cavaliers enter this season earning more than $35 million.
Conversely, rival contenders are swiftly changing course, negotiating every cap percentage point to get a bargain. Rather than adding as many maximum salaries as possible, the new NBA landscape is seemingly prioritizing two max players with high-end, cost-effective role players placed around them.
Most recently, the Atlanta Hawks agreed to a four-year, $100 million deal with last year's steals leader, Dyson Daniels. The Australian-born guard earned leaguewide acclaim for his perimeter defensive talents, joining All-Defensive First Team and was a candidate for Defensive Player of the Year.
While his offense is still underdeveloped, Daniels' archetype as a defensive stopper made him a perfect fit next to Trae Young in the backcourt. Retaining Daniels on a deal worth $25 million in average annual value could quickly prove to be an absolute steal if his offense evolves to become a legitimate three-point threat.
The Hawks' strict financial strategy is an example of a larger trend, limiting players who are a tier below a bonafide star to contracts lower than $25 million. Atlanta's savvy cap space navigation not only keeps Daniels in Georgia for the foreseeable future, but it prepares the front office to build around Daniels and another budget star, Jalen Johnson.
Atlanta is becoming the Cavaliers' biggest threat
This season, the costly Cavaliers are the expected leading powerhouse in the Eastern Conference. After winning 64 games last regular season, the Cavs retained the core and will enter their first full season with two-way combo forward De'Andre Hunter on board.
With Evan Mobley and Donovan Mitchell at the helm, Cleveland will undoubtedly be a fierce opponent and contender for the Eastern Conference playoff race if the team can enter the postseason healthy and mentally prepared. Yet, even a conference decimated by injuries to stars, the Cavs' road to dominating the conference's latter half of the 2020's decade is growing increasingly harrowing as rivals build a more financially flexible contender.
Even if the Cavaliers are the best team out east this season, winning the ECF and competing for a title, Atlanta is now prepared to be a yearly pain in Cleveland's neck. Young is known for his clutch moments, being the face of the franchise who knocked the Cavaliers out of the 2022 Play-In Tournament in their first run back to postseason action.
The theft extraordinaire Daniels will pester and push Mitchell and Darius Garland to their limits before capitalizing on a telegraphed passing lane. The Cavaliers are navigating the new CBA with belief that the constructed roster is worth the high price tag. If the Cavs hoist the Larry O'Brien in June, the Hawks are becoming increasingly likely to emerge as Cleveland's greatest threat.
Alongside the Orlando Magic and New York Knicks, the Cavs will have no easy pathway to continued playoff victories, especially as the second apron penalties restrict Cleveland's ability to keep up with the growth of their rivals. For years, the Cavaliers have refused to entertain trades for any of the core players beyond mild discussions. If rivals can build real contenders without exceed cap thresholds, the Cavaliers could soon regret their decisions if they do not result in a title first.
If the Cleveland Cavaliers restructure the roster to build more flexibility, the Hawks and Daniels should serve as a blueprint for contract extensions. Daniels, while being one of the league's best defenders, does not have the leverage to command exorbitant pay. Finding the balance between team-friendly and respecting a player's value is key, and the Cavaliers must begin exercising that same