The Cavaliers used the stretch provision to spread Ricky Rubio‘s $1,274,015 dead-money cap hit for 2024/25 across three seasons, according to ESPN’s Bobby Marks (Twitter link). Rubio will now count against Cleveland’s books for $424,672 annually through ’26/27.
Rubio was bought out by the Cavaliers last January with two years left on his contract, announcing at that time that his NBA career was over. He gave up $5.4MM in that agreement, leaving Cleveland with cap charges of $3,722,327 for 2023/24 and $1,274,015 for ’24/25.
The Cavaliers didn’t use the stretch provision on Rubio’s post-termination salary at the time of his release, but as Marks explains, the current Collective Bargaining Agreement allowed them to stretch the second-year salary across three seasons as long as they did so prior to the Saturday (August 31) deadline. Under the previous CBA, using the stretch provision was only permitted at the time of the waiver request.
The move generates an extra $849,343 in cap flexibility for Cleveland this season. That may not seem like much, but it gives the club a little extra breathing room below the luxury tax line as the front office negotiates a deal with Isaac Okoro. If the goal is to re-sign Okoro to a multiyear contract, sign a 14th man to a minimum-salary deal, and remain out of tax territory, that extra $849K could come in handy.
The Cavaliers are now approximately $10.6MM below the luxury tax line, meaning they could offer Okoro a first-year salary of roughly $8.5MM and avoid becoming a taxpayer. That would allow them to go up to about $27.5MM for three years or $38.1MM over four years for the last unsigned restricted free agent on the market.
Even if they end up going slightly into tax territory to fill out the opening night roster, reducing Rubio’s 2024/25 cap hit will make it easier for the Cavs to duck the tax with a trade later in the season.