Why do they have to wait until the end of the draft both Favors and Varejao are under contract.
You're right. I was thinking of taking on more than we got back for Cleveland's "cap relief" and should have used Jack on July 1st. Brain freeze on my part since Favors DOES get traded for Varejao and filler as part of the draft day transaction. Cleveland doesn't need much additional cap relief beyond that as both Deng and Hawes come off the books.
Favors has a PPP provision due to signing an extension, so I believe his trade value is about $11M (avg of current salary + new contract). Varejao is making $9M.
Utah: Favors and the #5
Outgoing salary $11M
Cleveland: #1, Varejao and Gee (have to include Gee, Zeller or Karasev for filler). Cleveland likely still wants Zeller.
Outgoing salary $12.3M
Deal seems a little lopsided in favor of Utah. Jazz may need to sweeten the pot by adding a future 1st (or the #23). However, it's done with the understanding the teams are working towards a deal on July 1st, the terms of which are likely agreed upon before the draft day trade occurs.
However, Cleveland ONLY does a salary dump IF Lebron opts out and wants to return to Cleveland. Otherwise, they're under the tax even WITH a MAX extension for Irving. Jazz could take on any combination of Jack, Bennett, etc. by simply renouncing the contract rights/holds of Biedrins, Rush and RJ. In exchange for helping them, if needed, Jazz could reacquire a pick that was thrown in to get the draft day deal done. For example, Jack + the future first for Lucas and a 2016 2nd-rounder. Cleveland releases Lucas after the trade and saves themselves the entire $6.3M of Jack's contract. Overpaid, but JJ would be a great backup PG behind Trey and a "veteran" presence on the team.