CLEVELAND, Ohio -- The Cleveland Cavaliers are planning to waive exiled shooting guard JR Smith Monday evening, barring an unforeseen trade, league sources tell cleveland.com.

The Cavs have the option to extend the full guarantee date on his contract another two weeks, to Aug. 1, but a source said the team views it as unlikely to trade him at this point in the summer, with many teams already having cleared salary space other ways.

Instead, the Cavs will waive and stretch Smith’s $4.3 million guaranteed over the next three years.

By doing this, Smith will count for $1.4 million against Cleveland’s salary cap for the next three years instead of $4.3 million this year -- a maneuver that keeps the Cavs below the luxury tax.

In numerous trade conversations, the Cavs were seeking a future first-round pick in return for Smith’s partial non-guaranteed deal, even willing to take on two-plus years of bad money to make that happen. But it had to be a valuable pick worth the penalties that come with being a tax team and they didn’t want to force a bad deal for the sake of action.

The Cavs had plenty of suitors and sources say owner Dan Gilbert signed off on those potential deals, continuously pushing the front office to take on that added money, which in various offers would’ve resulted in a cost of more than $50 million when combining the salaries and taxes. While there was no specific mandate to stay below the luxury tax threshold, the Cavs still turned down offers, including a few on draft night.

In the early stages of free agency, the Cavs offered Smith to Golden State for Andre Iguodala, sources say, believing they made a better offer than the one the Warriors took from Memphis. The Cavs even offered lighter protections on a future first-round pick. But the Warriors sent Iguodala into the Grizzlies’ open cap space instead of trying to work cap gymnastics around Smith’s partial guarantee and the move with Memphis allowed Golden State to make other smart signings to fill out its roster.

Once the Cavs exhausted all possibilities and ultimately determined what they would have gotten back in return for Smith didn’t make sense to be a tax team this upcoming season -- the second year of this lengthy rebuild -- they made the decision to move on, choosing not to use one of their most appealing trade chips.

Staying below the luxury tax line has its own value. It allows the Cavs to reset that clock and stay out of the repeater tax until they are once again ready to be competitive. It technically gives them the full mid-level exception, which they are unlikely to use this summer. It also gives them financial flexibility, something they view as important during this rebuild.

The Smith trade conversations began shortly after he was asked to leave the team in November. At that time, the Cavs didn’t want to entertain any buyout discussions, holding onto him as a trade asset. When planning for this summer, Cleveland’s front office projected to have around $15 million in space. That number shrunk significantly following other deals around the deadline.

The Cavs flipped George Hill to Milwaukee for John Henson, Matthew Dellavedova and a future first-round pick. Henson and Dellavedova are on expiring contracts for the 2019-20 season, making them potential trade pieces. They also add plenty of veteran experience, with Dellavedova helping youngster Collin Sexton last season, and reaching out to rookie Dylan Windler during summer league.

Then Cleveland sent veteran Kyle Korver to Utah for Alec Burks, who the Cavs eventually rerouted to Houston for a 2019 first-rounder, Brandon Knight and Marquese Chriss. Once those deals were completed, adding three firsts and multiple seconds, the Cavs’ salary cap projections changed and the team knew it would be a mundane summer.

Given the various moves made to add draft capital -- and take on added salary -- this past season, it should be expected that the Cavs make similar attempts at in-season trades once again this year.

When Smith is officially waived, becoming an unrestricted free agent, the Cavs will remain about $22 million over the cap, which is set for $109 million this coming season, but still under the luxury tax line of $132 million.

Smith’s release will also bring Cleveland’s roster to 13 players, one below the number it would like. The max number allowed is 15, but sources say the Cavs plan to enter the season with an open spot.

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