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Cavaliers Complete Sign-and-Trade Deal With Miami

The Cleveland Cavaliers agreed to a sign-and-trade deal with the Miami Heat to acquire the rights to five future draft picks and receive a traded player exception for free-agent forward LeBron James, Cavaliers General Manager Chris Grant announced today. Per team and league policy, terms of the contract were not released. 

"This deal provides us with multiple key assets and additional flexibility as we move forward for both the short term and beyond," said Cavaliers General Manager Chris Grant.

Cleveland now owns two of Miami's first-round draft picks starting no earlier than 2013 and continuing through 2017, the Heat's 2012 second-round pick from New Orleans, and the future second-round pick Miami acquired from Oklahoma City. Additionally, Cleveland will have the right to swap 2012 first-round picks with the Heat. The trade also gives Cleveland a very large trade exception, which the Cavaliers can now use in trades within one calendar year.

So, to summarize the trade - 

MIAMI GETS:

  • LeBron James, who signs a 6-year, $110 million contract

CLEVELAND GETS:

  • Two first-round picks, that must be used starting in 2013 and ending by 2017
  • 2012 second-round pick Miami received from New Orleans
  • Future second-round pick Heat acquired from Oklahoma City
  • Cleveland can also swap first round picks with the Heat in 2012
  • A large trade exception($15 million or so) that the Cavs must use in trades for one calendar year.
This deal allows LeBron James to make some more money while allowing Miami to have flexibility to sign more players this summer.

For the Cavaliers, this obviously allows them to rebuild through the draft, or use the picks for trades themselves should the opportunity arise.  The trade exception will also allow the Cavaliers to acquire talent now(for the next 12-months) to assist in the rebuilding process.