CLEVELAND, Ohio — When Ty Jerome posted on Instagram that he “was never presented with the option of returning” to Cleveland despite his breakout season, Cavs fans were stunned. How could a player who finished third in Sixth Man of the Year voting and became a fan favorite not even receive an offer?
The answer reveals the brutal financial reality of modern NBA roster construction.
As Cavs beat reporter Chris Fedor explained on the Wine and Gold Talk podcast: “$9 million from the Memphis Grizzlies does not equal $9 million from the Cleveland Cavaliers. When you’re talking about annual salary because of all the luxury tax implications and because of the second apron implications.”
The financial mathematics are staggering.
Jerome ultimately signed with Memphis for approximately $9 million annually — a reasonable figure for a player of his caliber.
But for the luxury tax-burdened Cavaliers, that same contract would have triggered punishing penalties.
“If they would have given Ty the $9 million annual salary, we’re talking about 50 to $55 million in luxury tax,” Fedor revealed, highlighting the exponential cost increase created by the NBA’s progressive tax system.
While fans might question why the team wouldn’t fight to retain a player who brought such energy and scoring punch, the front office faced a cold economic calculation.
“No. Not at all,” Fedor responded when asked if the Cavs allegedly not even offering Jerome a contract would be surprising. “Because they determined coming into free agency that they weren’t going to be able to keep everybody on this roster, even the guys that they like, given their roster construction, given their salary cap situation.”
The second apron — a new, more punitive luxury tax threshold — created a financial straightjacket for Cleveland. Every dollar spent above this line triggers not just financial penalties but also restricts team-building options for years to come.
“It just became harder to justify that sort of thing,” Fedor explained. “It’s really easy to go out and spend somebody else’s money... But this front office would have to explain that to Dan Gilbert.”
Even with these financial constraints, Dan Gilbert’s commitment to championship contention remains evident.
The Cavaliers’ owner is currently set to spend more than $375 million on the team next season — $226 million on salaries and $149 million in luxury tax payments, as host Ethan Sands laid out.
Only one NBA owner, the Phoenix Suns’ Mat Ishbia, is spending more, with a staggering $165 million in luxury tax payments alone.
This financial context makes Jerome’s departure more understandable, if no less disappointing for fans.
The front office made a calculated decision to allocate resources elsewhere — primarily to Sam Merrill, who received a four-year, $38 million contract, and to accommodate Lonzo Ball’s $10 million salary.
The Cavaliers’ front office bet that the defensive upgrades provided by these moves would outweigh Jerome’s offensive contributions, especially after his struggles in the Indiana playoff series.
For Jerome, the outcome was clearly painful. His Instagram message revealed both disappointment and appreciation — emotions reflecting the gap between a player’s connection to a team and the cold business calculations that ultimately determine roster decisions.
As Jimmy Watkins noted, “They always tell you business isn’t personal. That’s what everybody says in these situations. That’s an easy thing to say before you’re told no.”
The saga of Ty Jerome’s departure serves as a stark reminder that in the modern NBA, financial considerations often trump on-court performance — and that a seemingly reasonable contract can become financially untenable through the magnifying lens of luxury tax penalties.
Here’s the podcast for this week:
_Note: Artificial intelligence was used to help generate this story from the Cleveland Wine and Gold Talk Podcast by cleveland.com. Visitors to cleveland.com have asked for more text stories based on website podcast discussions._
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