Mario Hezonja’s NBA comeback has hit a contractual snag, with Real Madrid refusing to release him despite his buyout payment. On Sunday, Shams Charania announced that Cleveland had agreed to a one-year, $2.8 million deal with the 31-year-old forward. But Real Madrid has challenged the validity of his NBA out clause, leaving the Cavaliers planning to waive him.

SPORT24 reported that “Cleveland Cavaliers will waive Mario Hezonja just days after signing him”—though the situation remains unresolved. The dispute centers on whether Hezonja triggered his NBA out clause before the July 20 deadline.

It’s not the NBA that’s stalling the move; it’s Real Madrid that has raised the issue.

Per BasketNews’ Donatas Urbonas, the clause was valid until July 20 each offseason through 2029. Hezonja contacted Madrid and paid the $850,000 buyout fee at the last moment, but Cleveland’s offer only arrived on July 26, six days after the deadline.

Marc Stein reported that Madrid believes the clause required a finalized NBA deal before July 20, not just intent to leave. Both the Cavaliers and Warriors had interest, but they delayed offers while waiting for LeBron James’ July 24 decision. That timing pushed Hezonja’s signing into a contractual gray area.

Two Options for Cleveland

The Cavs now face two paths. Madrid could accept the buyout and release Hezonja, recognizing his intent was enough. Alternatively, they could negotiate directly with his agent, which may prove costly, especially if Madrid insists on retaining his European rights for any future return. Meaning, when and if the 31-year-old returns to the EuroLeague, Real Madrid will have the first option to exercise a deal.

Hezonja’s value is clear. He earned Liga ACB MVP honors and shot 38.4% on catch-and-shoot threes in four years with Madrid, according to The Ringer’s Kevin O’Connor.

From making his return to the NBA after six years overseas to having the move stopped, it’s an odd scenario for Mario Hezonja and Cleveland. His size and shooting would bolster Cleveland’s wing rotation, but his NBA future depends on Madrid’s willingness to compromise.