NBA Roundtable

2010 Cap Space: Cleveland

In Free Agency, General NBA, Trade Talk on June 24, 2010 at 3:41 am

Cleveland Cavaliers Salaries

Contracts above $5 million

  • Antawn Jamison – $13.36 million
  • Mo Williams – $9.3 million
  • Anderson Varejao – $7.03 million

Anderson Varejao has five years remaining on his contract, Mo Williams has three years and Jamison has two seasons.

This gives us a sub-total of $29.69 million for three players.

Rest Of Team’s Salaries

  • Daniel Gibson – $4.01 million
  • Jamario Moon – $3 million
  • Anthony Parker – $2.86 million
  • Sebastian Telfair – $2.7 million
  • JJ Hickson – $1.53 million
  • Leon Powe – $920k

Jamario Moon, Anthony Parker, Sebastian Telfair and Leon Powe all have expiring contracts. JJ Hickson is entering the third year of his rookie scale contract. Daniel Gibson has three years and $13.2 million left on his contract.

That gives us a sub-total of $15.02 million for six players.

Other Costs

  • Draft Picks — The Cavs have no first round picks.
  • Cap Holds — A cap hold from last year’s pick (Eyenga) worth $850k.
  • Partially Guaranteed Contract — Only $500k of Delonte West’s $4.5 million is guaranteed. There is decent chance (30% ?) Cleveland waives West regardless of the LeBron situation, but should LeBron leave, West will surely be out the door too.
  • Open Roster Spots — The Cavs have ten players on the books so there will be a cap charge of $950k for the two remaining open roster slots.

A sub-total of $2.3 million which gives us an overall total of $47.01 million.

The Cap

David Stern recently announced

NBA commissioner David Stern said on Friday that the league is projecting the cap to come in at about $56.1 million. The actual number won’t be determined until early July, before teams can begin officially signing players.

Though that figure would still be lower than this season’s $57.7 million cap, it’s far better than estimates from last summer, when the league sent a memo to teams warning them of a potential sharp drop to between $50.4 million to $53.6 million.

2010 Cap Space

The Cavs have $9 million in cap space should they fail to re-sign LeBron James.

Summer Options

LeBron James Stays

  1. LeBron signs a maximum contract
  2. Cleveland may choose to keep Delonte West
  3. Cleveland resigns Shaquille O’Neal for a one year $5 million deal
  4. Cleveland spends their MLE likely on a wing player (Mike Miller?)

That brings the Cavs payroll up to $78.1 million and puts them well over the luxury tax.

If the Cavs let Shaq and Big Z go, and waived West, but spent their MLE, they would be just above the luxury tax threshold.

So, if LeBron stays, the Cavs will continue to have luxury tax concerns in the short term.

LeBron Leaves

Cleveland will begin dismantling their squad and will go through a full blown rebuilding process

  • Mo Williams for an expiring contract — very good chance of finding a buyer
  • Antawn Jamison for an expiring contract — dodgy, but he only has a two year deal so it’s not overly important
  • Anderson Varejao — Cavs may decide to keep Varejao or they may trade him. Hard to tell.
  • Delonte West — definitely waived
  • Daniel Gibson — would like to find a trade but doubtful they find any suitors

That would leave the Cavs with about $28 million in salaries for the following summer and $16 or so million the year after that.

Real cap flexibility + high lottery picks will allow the Cavs to rebuild.

On The LeBron Situation

It is now looking like there is a fairly good chance that LeBron will leave the Cavaliers this summer. The club haven’t made any promising moves yet and are unlikely to do so. Couple that with LeBron’s lack of interest in their coaching hiring process (Tom Izzo?) and the situation doesn’t look good.

Cleveland are one of the few teams who seem to be very reluctant in the sign and trade market (LeBron exiting S+T) so they are unlikely to get any major talent back in return there either + unlikely to take back much salary. They don’t want to be the king maker for another team, I think that is their fear.

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