The sneaky rule that tweaked Cavs, Bulls’ Lonzo Ball-Isaac Okoro trade

The Cleveland Cavaliers and the Chicago Bulls recently engaged in a straight trade for Lonzo Ball and Isaac Okoro. Generally, straight swaps involve a straight salary match while taking into account other details such as the number of years left on player contracts and future expectations.

However, this deal, according to journalist Keith Smith, was facilitated using a rather sneaky salary cap rule which allowed the two teams to participate without altering their financial outlook for the upcoming season.

Due to an injury protection clause in Lonzo Ball’s contract, Chicago was compelled to utilize $11 million of their $17.18 million traded player exception (TPE) from the earlier Zach LaVine–Sacramento Kings trade to absorb Okoro’s contract. Hence, instead of processing the swap as a traditional salary match, this maneuver not only adhered to the clause restrictions but also generated a brand-new $11 million TPE for Cleveland, offering them added flexibility moving forward.

The Bulls’ LaVine exception, originally worth $17.18 million, has $6.18 million remaining and is set to expire on February 3, 2026, per Sportrac. On the other hand, Cleveland’s freshly created TPE from the Okoro trade is valued at $11 million and expires on July 6, 2026. 

The Cavaliers also possess another exception from the Georges Niang trade with Atlanta, valued at $8.5 million and available through early February 2026. While the specific language of Ball’s clause has not been disclosed, it is understood that it impacted Chicago’s ability to process the trade without invoking the TPE mechanism.

This simple workaround effectively leveraged the LaVine exception and turned a simple swap into a nuanced agreement. Lonzo Ball, who played just 35 games last season after returning from a two-and-a-half-year absence due to persistent knee injuries, had signed a two-year, $20 million extension earlier in February.

Okoro, on the other hand, is owed $11 million for the upcoming season and joins a Bulls squad looking to shore up its defensive identity on the wing. The trade seems to be a win-win for both teams, especially considering the financial maneuvre they have managed.