Cavaliers Rumors: If LeBron James Returns, Cavs Could Spend Record $308 Million

The Cleveland Cavaliers could be footing a $300 million payroll next season, which would include over $150 million in salary-tax payments, if LeBron James re-signs with the team or exercises his $35.6 million player option for the 2018-19 season, according to Brian Windhorst of ESPN.com.

Per that report, the deals that netted the Cavaliers George Hill, Rodney Hood, Jordan Clarkson and Larry Nance Jr. before the trade deadline "added about $10 million in salary and luxury tax to their books this season. That will boost their tax payment to about $50 million and their overall payroll to nearly $190 million, the second highest in league history after the Nets' $193 million in 2013-14."

Windhorst broke it down as such: If James returns to Cleveland, Hood—who will be a restricted free agent after this season—is signed to a deal worth around $12 million a year and the Cavaliers keep the Brooklyn pick, paying that rookie anywhere from $4-7 million, their salaries could exceed $158 million and their luxury tax could reach $149 million, taking their total payroll to about $308 million.

That would be an astronomical mark, though it might simply be the price to keep a championship contender built around James.

Some league executives believe the moves the Cavaliers made, alongside keeping the Brooklyn pick, are indicative of the organization hedging their bets should James leave this summer. However, the Cavaliers offered a different perspective, per Windhorst:

"If the Cavs were hedging before, this was seen by some as a more elaborate hedge, where they can improve this year and send the message to James that they're supporting him but still lay the foundation for change. Otherwise, executives said, it's hard to fathom the team spending this much money.

"But multiple Cavs executives reinforced that is not the plan, that owner Dan Gilbert continues to offer unwavering support and is focused on winning more than on the team's bottom line."

In any event, this offseason will be a costly one for Cleveland. Either they'll be paying a huge payroll bill, or they'll be paying for their inability to retain James. Should he depart in free agency, the Cavaliers will be facing either another potential rebuild or trying to scrap for a playoff spot behind players like Kevin Love, Hill, Hood and Clarkson.