Report: Varejao, Cavaliers talking extension

According to Adrian Wojnarowski of Yahoo! Sports, the Cleveland Cavaliers and center Anderson Varejao are "engaged in serious talks" regarding a contract extension. According to Wojnarowski, no deal is imminent between the two sides, but talks have progressed over the past few weeks.

If the Cavs and Varejao were unable to come to terms, Varejao would be an unrestricted free agent next summer. This year, Varejao is making $9.8 million dollars as part of the last year of a six-year, $48 million dollar deal he signed in 2009. Last season, his 10th in the NBA, Varejao averaged 8.4 points and 9.7 rebounds per game. He appeared in 65 games - his highest total since 2009. He is set to start this year at center ahead of Tristan Thompson after spending a large portion of last year coming off the bench.

Varejao, of course, is a fan favorite and has spent his entire career in Cleveland. He's also a favorite of LeBron James and his skills - rebounding, defense, etc. - are exactly what Cleveland needs to supplement James, Kyrie Irving and Kevin Love moving forward. It isn't surprising that the two sides are working towards an extension.

What is worth noting here, however, will be the length and value of Varejao's extension. While it is assumed that the NBA's salary cap is going to rise, no one knows exactly how much yet. Along with looming extension talks for Thompson and possibly Dion Waiters, Varejao's extension is one of our first looks at what the Cavs' cap sheet will look like moving forward.