The Cavaliers will send De’Andre Hunter to the Kings in exchange for Keon Ellis and Dennis Schröder, sources tell Shams Charania of ESPN (Twitter link). The three-team trade also includes the Bulls, who will pick up Dario Saric from Sacramento and will receive two second-round picks as well.
The trade will save Cleveland nearly $50MM in salary and luxury tax this season, according to Bobby Marks of ESPN (Twitter link). The Cavs unload Hunter’s $23.3MM contract while taking back Schröder at $14.1MM and Ellis at $2.3MM. The move takes the Cavs from $22MM to just $13.9MM above the second apron and brings their total payroll down to $221.7MM, per cap expert Yossi Gozlan (Twitter link).
The Cavaliers were among many reported suitors for Ellis, an accomplished defensive guard who is set for free agency this summer. He will become eligible for an extension worth up to $52MM over three years on February 9, and Cleveland will acquire his Bird rights in the deal. He fell out of the Kings’ rotation early in the season, which prompted trade speculation, but he still appeared in 43 games, averaging 5.6 points and 1.1 steals in 17.6 minutes per night with .397/.368/.625 shooting numbers.
Schröder, 32, will be joining his 11th NBA team. He was one of Sacramento’s major offseason additions, agreeing to a three-year, $44.4MM contract as part of a sign-and-trade deal with Detroit. However, he shot poorly from the field and eventually lost his starting job to Russell Westbrook. Schröder has two more years left on his contract at $14.8MM and $15.5MM with a $4.3MM guarantee on the final season. He’s also a strong defensive guard and had a positive impact on the Pistons after they traded for him at last year’s deadline.
Gozlan points out (via Twitter) that the Cavs have an opportunity to get below the second apron by unloading Lonzo Ball‘s $10MM contract and a couple of minimum salaries. He notes that they have three more tradeable second-round picks to use for further moves before the deadline.
The Cavaliers picked up Hunter in a deal last February in hopes that he would become a dependable small forward to team with their four established starters. However, he has been more effective off the bench since coming to Cleveland and wound up being an expensive backup with the emergence of Jaylon Tyson. He has one more year left on his contract at $24.9MM and will get a chance to revive his career in Sacramento.
In a full story, Charania notes that trading two players for one will give the Kings roster flexibility to convert two-way big man Dylan Cardwell to a standard contract.
Saric, who has an expiring $5.4MM deal, will be absorbed into a $6.2MM trade exception Chicago has from last year’s Zach LaVine deal, according to Marks (Twitter link). The Bulls don’t have a roster opening, so they’re waiving Jevon Carter in order for the trade to be completed, according to Joe Cowley of The Chicago Sun-Times (Twitter link). The 30-year-old guard has a $6.8MM expiring contract and will become a free agent once he passes through waivers.
Chicago’s draft compensation for helping to facilitate the deal will be a 2027 second-rounder from the Cavs that originally belonged to Denver and a 2029 second-rounder from the Kings that includes stipulations, reports Brett Siegel of ClutchPoints. It will be the least favorable of picks among Detroit, Milwaukee and New York, according to Charania.
League sources tell Siegel that the Cavaliers were reluctant to take on Schröder’s contract during trade negotiations, but the Kings threatened to move onto other offers if they couldn’t unload the veteran guard. Ellis was at the top of the Cavs’ wish list heading into the deadline, Siegel adds, so they decided to accept Sacramento’s terms.
Sacramento was hoping to land a first-round pick for exchange for Ellis, but several teams that had expressed interest recently turned away, including the Pacers, Celtics and Timberwolves, sources close to the Kings tell Sam Amick of The Athletic.
According to Amick, Indiana was concerned about finding enough playing time for Ellis while Bennedict Mathurin is still on the roster. Even though Mathurin may be traded by Thursday’s deadline, the Pacers believed it was too much of a risk to part with a first-rounder.
The Wolves had been willing to include two second-round picks as part of their offer, Amick adds, but their priorities changed over the past week when it began to appear that Giannis Antetokounmpo may become available.