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Cleveland Cavaliers Turn Isaac Okoro Trade Into $11M Boost with Clever Cap Maneuver
Feb 14, 2024; Cleveland, Ohio, USA; Cleveland Cavaliers forward Isaac Okoro (35) celebrates after hitting a three point basket during the first half against the Chicago Bulls at Rocket Mortgage FieldHouse. Mandatory Credit: Ken Blaze-Imagn Images Ken Blaze-Imagn Images

The Cleveland Cavaliers ’ trade of Isaac Okoro to the Chicago Bulls for Lonzo Ball may look straightforward on the surface, but behind the scenes, it reveals a sharp financial play that strengthens Cleveland’s flexibility moving forward.

Rather than conduct a traditional salary match, the Cavaliers leveraged a specific clause in Ball’s contract, related to injury protection, to their advantage.

Chicago, still holding a $17.18 million trade exception from the Zach LaVine deal with Sacramento, was forced to absorb Okoro’s $11 million contract using $11 million of that exception due to Ball’s clause. That triggered the creation of a brand-new $11 million traded player exception (TPE) for Cleveland, which expires on July 6, 2026.

That’s not the only exception in Cleveland’s arsenal. The Cavaliers also possess an $8.5 million TPE from the Georges Niang trade, giving them more ammunition to improve the roster without having to move salary back in return, something invaluable for a team already facing luxury tax implications.

This kind of move matters. With the NBA’s evolving Collective Bargaining Agreement introducing new apron lines and hard cap triggers, even teams like Cleveland, currently projected to exceed the luxury tax, need to be surgical in roster management. Acquiring Ball and creating a new TPE without worsening their tax outlook fits that bill perfectly.

Ball, who returned last season after a lengthy injury layoff, is on a two-year, $20 million deal. If healthy, he adds playmaking and defensive depth. Okoro, meanwhile, gets a fresh start with a Bulls team eager for wing defense.

While not a blockbuster on paper, this trade exemplifies how a front office can gain a competitive edge, not just on the court, but on the balance sheet.


This article first appeared on Cleveland Cavaliers on SI and was syndicated with permission.

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