There is now a post on Reddit NBA pointing out that this scenario completely violates the CBA. We need to be below the tax apron all year to do a sign and trade, and that will be almost impossible to do while taking on Batum, Walker, PG III.
https://www.reddit.com/r/nba/comments/8r28y3/by_the_way_the_post_that_is_currently_on_the/
Sorry, I don't like it either.
FWIW bro, Reddit is wrong (and often is)...
If the Cavs send out $8M more in salary than they currently have on the books, they'll be below the apron. So for PG13 in an S&T, Cavs could send Love+Korver or Hill+Smith+Cedi as an example.
For Batum and Kemba, Cavs could send out ~$46M in salary so Hill+Smith+Clarkson makes a great deal of sense in a trade like that.
So if you sent out Love, Korver, Hill, Smith, and Clarkson while taking back George, Kemba, and Batum you're roughly -$11.5M in salary, and definitely below the apron.
You can then open up an addition $14M in cap space by stretch waiving Batum, to go
-$25.5M.
So for the exact numbers, if the Cavs did the outlined trade here, they'd end up at $126.38M in salary, and with roster holds they'd be at ~$128.5M or effectively $500k short of the apron -- and that's
before waiving Batum.
If they waive Batum, they'd be at
$113.08M, which is $15.9M short of the apron, and well below the tax line. Cavs could use the MLE and
still be below the tax.