Tag #Luxury Tax

What are the immediate financial implications for the Cleveland Cavaliers if they remain above or drop below the NBA's luxury tax threshold before the trade deadline?

The Cleveland Cavaliers face a crucial decision before the NBA trade deadline: either remain above the luxury tax threshold or reduce their payroll. Staying above the tax will trigger repeat-offender status in 2027-28, significantly increasing future tax payments, while dropping below the threshold would yield a payout this summer and delay repeat-offender status. The team's current luxury tax payment is approximately $2 million.