With the highly anticipated NBA Playoffs kicking off Saturday, the Cleveland Cavaliers added some frontcourt depth and signed veteran big man Kendrick Perkins. Perk has not played in the NBA since 2016, but he is noted as one of best locker-room guys in the league.
The signing, however, served as a reminder of the Cavs’ awful financial positioning. As ESPN Front Office Insider Bobby Marks pointed out, Cleveland is on the hook for an astronomical luxury-tax bill at the end of the season.
Kendrick Perkins will earn $13,156 for 1 day of service with $8,313 applied to the luxury tax. The signing will cost Cleveland an additional $35,373 in luxury tax costs. The Cavaliers project to finish the season with a league high tax bill of $50.93M.
— Bobby Marks (@BobbyMarks42) April 11, 2018
Adding $8,000 to the luxury-tax total may not seem like much. Every dollar, however, will hurt for Dan Gilbert and company as they pay their $51 million dues to the league.
The Cavs’ Salaries
LeBron James is earning $33 million this year, as well he should. He remains the best player in the league, and he deserves the max deal he has.
Much of the Cavs’ remaining players, however, are playing on deals larger than that which they deserve. Veteran guard J.R. Smith is earning $13.76 million this season. Big man Tristan Thompson is receiving $16.4 million.
Perhaps worst of all: guard George Hill, whom the Cavs acquired from Utah at this year’s trade deadline, is earning $20 million. He is under contract through 2019-20.
Rounding out the Cavs’ top earners, Kevin Love is earning $22.64 million. He is also under contract through 2019-20.
The biggest question surrounding the Cavs, of course, is whether LeBron will come back or sign elsewhere this summer. If he elects to go to another team — Philadelphia, Houston, and the Lakers are reportedly in contention — the Cavs will be stuck with a tough financial situation and an average roster.
