Cleveland Cavaliers: Cap situation after Kyle Korver trade

Jan 5, 2017; New Orleans, LA, USA; Atlanta Hawks guard Kyle Korver (26) sits on the bench during the first quarter of a game against the New Orleans Pelicans at the Smoothie King Center. Mandatory Credit: Derick E. Hingle-USA TODAY Sports

Details on the Cleveland Cavaliers cap situation after the team traded for shooting guard Kyle Korver trade emerge.

The Cleveland Cavaliers and the Atlanta Hawks have agreed in principle on a trade that will send Kyle Korver to the Cavaliers for Mo Williams and Mike Dunleavy Jr. to the Hawks with the possibility of a third team acquiring Dunleavy Jr.

What does this mean for the Cavs and the cap situation?

King James Gospel reached out to two cap experts to describe the cap situation for the Cavaliers.

According to one source, the Cavaliers, if Williams is included in the trade, the Cavs will save $5.3M in taxes.

Another source describe what they saved in the actual cap space.

“The Cavaliers trim off about $1.8 mil in actual salary but the tax is progressive, so they were spending roughly $3.25 for every dollar over the tax threshold, that shrinks down to the $2.50 per dollar range.”

What else this trade means

The Cavs also free up a roster spot and as reported earlier by King James Gospel, it lets the Cavs keep Jordan McRae. It is still unlikely the Cavs waive him.

The Cavs, as LeBron James wants them to do, are most likely going to acquire a backup point guard.

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