The Cavs traded player exception explained

Koby Altman has another tool to work with.

Cleveland Cavaliers president of basketball operations Koby Altman has continually shown that his greatest strength is upgrading the roster with trades. That came through again earlier this summer when the Cavs acquired Lonzo Ball from the Chicago Bulls for Isaac Okoro.

This team needed more size on the perimeter, an additional ball handler, and someone who could win their defensive matchups. Ball should help in all of those areas. Additionally, Ball makes $1 million less this upcoming season than Okoro, which is beneficial in a salary-capped sport considering the Cavs are a second-apron team.

Teams can get a traded player exception when they move a player for someone making less money. The Cavs did that in the Ball for Okoro deal so they would have an exception that they could use.

Spotrac contributor Keith Smith believes that the Cavs would have an $11 million exception because there was an injury protection clause in Ball’s contract. This protection would’ve allowed for Ball’s outgoing salary to act as $0 for the purposes of just the trade.

A traded player exception allows the team with that exception to take back a player making that salary or less in a deal. It cannot be combined with the salary of other players or other exceptions.

Traded player exceptions last a year after the deal has been made. This means that a trade exception that was created from a move last trade deadline could be used now or before that one-year anniversary during this upcoming season.

The Cavs are a second-apron team, which comes with restrictions on how they could use traded-player exceptions.

Second apron teams cannot use a traded player exception that was created during the last league year. The league year begins on July 1. Any exception created before the current league year would be frozen unless that team gets out of the second apron.

The Cavs and Bulls trade was officially executed after July 1, which means it is in this league year (2025-26). As such, the Cavs are able to use it, whatever amount it is. Any exception the Cavs created before July 1 can’t be used.

The Cavs can only take back 100% of the salary that they’re sending out in a trade and they cannot send out multiple players in a deal because of the second apron. In essence, they’re restricted to only swapping out one player for one (or multiple players) that make as much or less than who they’re sending away.

A trade exception of $11 million wouldn’t change that in most circumstances since it can’t be combined with other players’ salaries. It can, however, be used in a trade where the Cavs don’t send out a player (could send draft compensation or provide salary relief instead) and receive a player back in return.

In short, the Cavs could acquire anyone in the league making $11 million or less next season with the exception as long as they didn’t send a player out in the process.

RealCavsFans (who’s a great follow for all Cavaliers stuff, but especially cap-related things) provided a quick breakdown of guys Cleveland could target with the exception.

Some players on this list could really help out the Cavs.

The question would become whether bringing on a player like this would be worth the price in draft assets and in luxury tax payments. The Cavs are far into the tax. Any salary that they add to their payroll will result in a significant jump in the tax bill.

We’ll see whether the Cavs are able to use this exception to acquire more talent. At the very least, they have more options available to them now than before.

Update: This article was revised to clarify the amount of the traded player exception and how it could be used.