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$80 Million Salary Headache Looms Over Cavaliers’ Ty Jerome Decision

June 9, 2025 by Heavy

Ty Jerome was a standout contributor for the Cleveland Cavaliers this past season. The veteran ball-handler finished in the top three of the Sixth Man of the Year voting. However, he could leave Cleveland this summer, as Koby Altman faces up to the reality of being a second-apron luxury tax team.

ESPN’s Bobby Marks detailed the headache that Jerome’s future could cause for Cleveland during a May 31 article.

“Jerome has early Bird rights, allowing Cleveland to sign him up to four years (the contract has to be a minimum of two seasons) and $64 million,” Marks wrote. “To show how punitive the luxury tax rules will be next season, a $14.3 million salary in 2025-26 costs Cleveland an additional $80 million in luxury tax penalties. The Cavaliers have the veteran minimum exception available in the likely scenario that the cost to retain Jerome becomes too high.”

Jerome would cost the franchise a significant amount in salary and luxury taxes and cement Cleveland as a second-round team. As such, Altman would be limited in his ability to continue retooling the current roster, due to the punitive nature of the restrictions second-place teams face.


The Denver Nuggets Could Steal Ty Jerome

A recent report from Chris Fedor of Cleveland.com  has linked the Denver Nuggets with potentially pursuing Ty Jerome this summer.

“Because Jerome has spent two seasons with the Cavaliers, they hold his Early Bird Rights,” Fedor reported. “By rule, he can sign for up to 175% of his contract this year — a negligible pay increase — or 105% of this year’s leaguewide average player salary…Sources say the Nuggets have interest, but they will probably be a first-round team.”

If Russell Westbrook chooses not to pick up his player option for next season,  they will need a replacement guard. Jerome’s stock is high around the NBA at present. He would instantly command a spot off the Nuggets’ bench. Furthermore, he would provide high-level cover for Jamal Murray, who has struggled with injuries in recent years.


Jerome Wants to Stay With Cavaliers

During a recent interview with Michael Scotto of HoopsHype , Jerome made it clear that he wants to remain with the Cavaliers.

“I think I have an amazing situation here with a coaching staff that empowers me and a team that empowers me,” Jerome told HoopsHype. “Obviously, I’d love to be back. We’ve just got to see how it plays out.”

Jerome played in 70 games this past season. He averaged 12.5 points, 2.5 rebounds and 3.4 assists. During those games, he shot 51.6% from the field and 43.9% from 3-point range. Therefore, it’s easy to see why contending teams around the league could hold an interest in acquiring his services.

Given the potential cost associated with retaining Jerome, Altman has a tough decision to make. The Cavaliers’ roster clearly needs tweaking. As such, the possible restrictions that would come with re-signing Jerome may not be worth it.

Jerome was a key part of Kenny Atkinson’s rotation this summer. Losing him would be a blow for the Cavaliers. Fortunately, Altman has rarely put a foot wrong in recent years, so he’s earned the trust of the fanbase. It will be interesting to see what decision he makes regarding Jerome’s future.

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This article was originally published on Heavy Sports

The post $80 Million Salary Headache Looms Over Cavaliers’ Ty Jerome Decision appeared first on Heavy Sports .

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