There's a major reason why the Cavaliers haven't splurged in free agency: They are already major taxpayers.
The league sent out luxury tax bills this week and the Cavs will be paying more than $14 million for the just-completed 2007-08 season. That's the third-highest figure in the NBA. Only New York ($19,723,946) and Dallas ($19,613,295) are paying more tax. The Cavs had almost $80 million in salaries committed to the 2008-09 season -- and that was before they re-signed restricted free agent guard Daniel Gibson to a five-year contract on July 16. Terms of the deal were not announced.
Cleveland also has to re-sign guard Delonte West, another restricted free agent. First-round pick J.J. Hickson and second-rounder Darnell Jackson have yet to be signed.
And that's not counting any free agents the Cavs might want to sign. If there's any movement, it will likely come via a sign-and-trade, so they don't have to take on any more salary.
The league announced the threshold for the tax is about $71 million for the 2008-09 season. Anything over that and teams will be paying a tax.
