Cleveland Cavaliers just executed a bold three-team trade with Sacramento Kings and Chicago Bulls ahead of Thursday’s deadline. The Cavs sent De’Andre Hunter to the Kings and acquired Dennis Schroder and Keon Ellis to strengthen their playoff push. This trade saves $50 million in luxury tax costs for Cleveland.
🔥 Quick Facts
- What Cavs Get: Guard Dennis Schroder (averaging 12.8 PPG, 5.3 APG) plus defender Keon Ellis (41.6% from 3-point range)
- What Cavs Send: Forward De’Andre Hunter, averaging 14 PPG, 4.2 RPG this season in Cleveland
- Tax Savings: $50 million in salary and luxury tax relief this season and beyond
- Timing: First major trade of 2026 deadline, executed on February 1 before Thursday’s cutoff
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The Cleveland Cavaliers wasted no time strengthening their roster just four days before the trade deadline. General manager of Cleveland recognized that veteran guard production and defensive versatility were critical for deep playoff runs. By acquiring Schroder, a 32-year-old veteran with three-year deal experience, the team adds crucial bench scoring. Ellis, meanwhile, brings elite perimeter defense and floor spacing.
Cleveland currently sits in fifth place in the Eastern Conference with a 29-21 record. The team has won seven of its last nine games, signaling momentum entering the final stretch. Coach Kenny Atkinson‘s squad targeting a serious postseason contention position and recognizes that roster depth separates championship teams from early exits.
Who Are Schroder and Ellis
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Dennis Schroder, the 32-year-old point guard, signed his current contract last summer worth $44.4 million over three years. He makes $14.1 million this season and is one of only two players averaging 10+ PPG and 5+ APG off the bench this season, alongside Tre Jones of Chicago. His veteran poise and playmaking provide immediate impact.
Keon Ellis is a floor spacer and defensive nightmare for opponents. The 28-year-old guard has shot 41.6% from three-point range in his career and is one of only two NBA players averaging 2.0 steals and 1.0 blocks per 36 minutes this season. He joins Detroit’s Ausar Thompson in that exclusive club, showing his elite two-way value despite averaging just 5.6 PPG in limited minutes.
Trade Details and Financial Impact
Cavaliers Trade Asset Breakdown:
| Asset | Details |
| Out: De’Andre Hunter | Forward, 14 PPG, 4.2 RPG |
| In: Dennis Schroder | 12.8 PPG, 5.3 APG bench guard |
| In: Keon Ellis | Elite defender, 41.6% three-point shooter |
| Tax Position | Drops from $164M to $120M in tax bill |
The three-team transaction also included Chicago Bulls acquiring Dario Saric and two future second-round picks. Sacramento gained Hunter, who has remained a reliable 14 PPG contributor throughout his eight-year NBA career. The Kings now own Hunter’s contract through next season, worth approximately $48 million over two years.
“The Cavaliers are turning Hunter’s salary slot into depth at point guard with Schroder and a top defender on the market with Ellis. The Cavaliers also save about $50 million in salary and luxury tax bills this season because of the transaction.”
— ESPN Trade Analysis, NBA Transaction Coverage
What This Means for Cleveland’s Playoff Path
The Cavaliers position themselves aggressively for postseason success by converting salary into immediate depth. Schroder’s playoff experience and Ellis’s elite defense provide countermeasures against Eastern Conference heavyweights like Boston, New York, and Detroit. Cleveland also gains future luxury tax flexibility, potentially allowing the team to re-sign Ellis to an extension beginning February 9 without exceeding the second apron threshold.
Coach Atkinson gains veteran depth that rounds out his rotation. Schroder provides reliable bench scoring for matchup flexibility, while Ellis’s defensive versatility allows the team to switch assignments and hide defensive liabilities. Over a seven game winning stretch recently, Cleveland has proven it can compete at elite levels.
Will This Trade Push the Cavs Over the Contender Threshold?
The real test arrives in the playoffs, where depth determines series outcomes. Dennis Schroder‘s veteran poise on big stages and Keon Ellis’s perimeter defense address fundamental weaknesses. Sacramento (currently 12-38) under new GM Scott Perry views Hunter as a cornerstone for their rebuild alongside Keegan Murray. The trade affects three franchises pursuing entirely different objectives, making it a rare deal balancing competing needs simultaneously.


