Recently I took the time to examine the cap space and draft pick prospects for each team in the NBA and it stuck out to me that the Cavs are in a virtual "can't-lose" situation. The team has approximately 20 million in cap space this season (which they would be wise not to waste), the number one pick, the Lakers' first rounder, and Orlando's second rounder. In addition, the team doesn't owe any picks, has two more (acquired) picks next year, and has Varejao's extremely movable contract. Even James Dolan or Billy King couldn't screw this situation up.
I would personally do the following:
1.Draft Nerlens Noel as well as a back-up Center/Point Guard.
2. Sign some underrated yet cheap players that would put the team barely over the min. cap (DeJuan Blair/Ivan Johnson, Chase Budinger/Matt Barnes/Kyle Korver/Dorell Wright/Brandon Rush, and Jarrett Jack/Jose Calderon).
3. Trade Varejao at the deadline for picks and/or a rotation player.
4. Go into 2014 free agency with the cap room to sign a legitimate culture-changing player. Lebron is the ideal but you could settle for DeMarcus Cousins or Luol Deng. Finally, use remaining space to add a very good role player like Thabo Sefolosha.
In fact, even if the Cavs decided to be cheap and forgo potentially overpaying someone in free agency this year or next all they need to do is hit on two or three player in the next three years and they'll be fine. It's not terribly unlikely that ONE player out of ELEVEN of their picks in the next three years turns out to be a star/superstar level player.
In conclusion, this may be the most important three year period in the history of this franchise! With even subpar/average team management the Cavs should be a relevant playoff team by 2015. It wouldn't shock me at all if between 2016 and 2020 they are competing for championships.
I've only detailed one potential road but there are many many more. I'd love to hear some more possible paths you guys have for this franchise.