Report: Dan Gilbert Comfortable Absorbing Luxury Tax Costs As Long As Cavs Are Legitimate Title Contender

According to NBA insider Jake Fischer, Dan Gilbert is comfortable absorbing luxury tax costs as long as the Cleveland Cavaliers are legitimate title contenders.

When Evan Mobley won the 2024-25 Defensive Player of the Year Award, it triggered a clause in his contract that called for him to increase the first-year salary of his rookie-scale extension from 25 to 30% of the salary cap.

As a result, the Cavaliers are now projected to have $219 million in salary for the 2025-26 season and be over the second apron.

Cleveland had the top record in the East this year. However, the Indiana Pacers beat the Cavaliers in the second round of the playoffs in five quick games. 

“The Cavaliers have often suggested that owner Dan Gilbert is comfortable absorbing luxury tax costs as long as the team is a legitimate title contender. It is presumed Cleveland still sees itself in those terms despite an early exit in which injuries certainly contributed to the disappointment of a 4-1 series score,” Fischer wrote. 

Cavaliers president of basketball operations Koby Altman holds his end-of-season news conference on Monday.

Mobley, Donovan Mitchell, Darius Garland and Jarrett Allen are expected to be back next season, per Fischer. 

“The Cavs, I think from my understanding from talking to people in and around that organization, I think they are largely gonna stand pat this summer,” Fischer said.