Couldnt we sign him to a two year MLE deal ($5.1 per year), and then up his salary in year 3 with early bird rights?
Then use the BAE for some combo of Cedi/Derrick?
So, in that scenario, Melo's salary looks like this:
2017-18: $5.20M
2018-19: $5.46M
2019-20: $9.50M (175% under Early Bird Exception)
2020-21: $9.93M
2021-22: $10.37M
That's $40M/5... Now, Melo might be okay with something like that, given he's still likely to get upwards of $40M+ from the Knicks, so, if he gets say.. $45M, that'd be $95M/5Y in total guaranteed earnings. That's an average salary of $19M carrying him until he's 38 years old. That's not bad.
But.. Melo could also sign a 3-year deal with another team, a Wade-like deal, with less up front but one more year. Something like $60M/3Y
In that instance, Melo's salary looks like:
2017-18: $5.20M (1+1 opt-out, how can the Cavs say no?)
2018-19: $20.00M
2019-20: $20.90M
2020-21: $21.84M
That's $68M/4, in addition to his $45M buyout (hypothetically, again); so that's $113M/4Y with one fewer year under contract.. an average salary of $28.25M/yr.
Now, since whatever contract he signs will be his last, the number of years is actually not all that relevant; it's simply gross earnings at this point, which makes average salary a bit less relevant too.
The relevant number here is $18M. That's the salary differential between Cavs 1+1 MLE and Melo signing somewhere else for $20M, or the Cavs doing a 2+1 MLE deal with the promise of offering Melo a 120% contract in 2-years.
I think it's preferential for the Cavs and Melo to avoid this though... For Melo, it could mean slightly more money or slightly less, but lack of guaranteed income while playing at a high level. If you're Melo, do you want a 2-year deal at age 33? I wouldn't. I'd want to sign for the longest term possible...
If I'm Melo, I want the Cavs to trade for me; hire Rich Paul as my agent; opt-out, and work out a deal with the Cavs alongside LeBron James simultaneously (see: Tristan Thompson). This could net him significantly more money if he signed an $80M/4Y deal while James signed a max contract.
Anyway, there's LOTS of moving parts, but I don't
think Melo would be in favor of taking a 120% raise over a taxpayer MLE salary. It's possible.. but I just don't think that's what James or Melo would try to pull off.