The Cleveland Cavaliers are coming off a successful regular season where they won an Eastern Conference-high 64 games. That success has come with a significant financial cost, placing them in a unique and challenging position within the league. The team built around stars like Donovan Mitchell and Evan Mobley now faces intense scrutiny as the new season begins, with their roster decisions under a microscope.

This scrutiny is amplified by the team’s current financial commitments, which have positioned them as the only NBA team operating at almost $22 million above the restrictive second apron. This level of spending triggers severe penalties and limits how the front office can improve the team.

Reports from Chris Mannix of Sports Illustrated indicate that this pressure could lead to a significant roster move. He noted that teams are “monitoring how Cleveland starts the season” and that center Jarrett Allen “could be available for the right mix of rotation players.” This sentiment is echoed around the league as the Cavs weigh their options with the former All-Star.

His $20 million salary (rising to $28 million next year) makes him a trade candidate to add shooting or perimeter defense without gutting the core. Allen, a 2022 All-Star, is seen as the “odd man out” among the “Core Four” (Mitchell, Mobley, Darius Garland, Allen) due to overlap with Mobley’s versatility.

Potential suitors like the Charlotte Hornets or Brooklyn Nets have been floated in mock trades, often involving wings or picks to ease Cleveland’s cap crunch.

The financial incentive to make a move is substantial. The Cavaliers are projected to pay a massive $149 million luxury tax penalty this season due to their $226.3 million payroll. This staggering figure directly results from $38.4 million over the luxury tax line, creating a total roster cost nearing $375 million.

Owner Dan Gilbert has historically been willing to pay for contenders, but this level of expenditure is unprecedented.

This financial reality makes a core adjustment increasingly likely, setting the stage for a difficult decision regarding a key player as the season progresses.

The $149 Million Reality Check

Cleveland’s $226,287,886 payroll exceeds the $187.9 million luxury tax line by $38.4 million, resulting in a staggering $149 million penalty—the highest in the NBA for 2025-26. Combined with payroll, this pushes their total “roster cost” to nearly $375 million. It’s a direct byproduct of max deals for Mitchell, Mobley, Garland, and Allen’s extension, plus supporting contracts like Max Strus’s.

This financial hit is compounded by the team’s position above the second apron, which is set at $207.8 million for the 2025-26 season.

Being above the second apron triggers immediate and harsh restrictions on team operations. The Cavaliers cannot use the mid-level exception to sign free agents and are limited to veteran minimum contracts.

They are also prohibited from aggregating multiple player salaries in trades, meaning they cannot bundle several smaller contracts to match a larger one. Additionally, they cannot use pre-existing trade exceptions or include cash in transactions.

If the Cavaliers remain above the second apron for three out of five seasons, they face even more severe consequences. Their first-round draft pick would be automatically moved to the end of the first round, a devastating penalty for team building.

This long-term risk, combined with the immediate cost, creates immense pressure on the front office to reduce salary before the trade deadline.