Stephen A. Smith and Max Kellerman break down the dysfunctional way the Cleveland Cavaliers make basketball decisions. (1:49)

The Cleveland Cavaliers traded forward Richard Jefferson, guard Kay Felder, two second-round draft picks and cash considerations to the Atlanta Hawks for the draft rights to forward Dimitrios Agravanis and guard Sergey Gladyr.

Sources say that $3 million is going to Atlanta.

"These situations and decisions are some of the toughest to be in and have to make. Certainly, both RJ and Kay are two guys we also wanted to have here with us this season," Cavaliers general manager Koby Altman said in a statement. "RJ embodies all of the things you could want in a veteran player and teammate. His consistent success at a very high level over many years is a reflection of the kind of high-quality player and person he is. His steady leadership, great attitude, dependability and performance helped us win an NBA championship and we are grateful for all of his contributions on the court and within our locker room.

"Kay is a young, hard-working, talented player who has the potential for a bright and long future in this league as well. His daily dedication and hard work are going to help him greatly."

Atlanta intends to waive Jefferson and Felder, sources said, and they would become free agents after clearing waivers. Jefferson was set to earn $2.5 million this season and Felder $1.3 million.

The Cavaliers will send the lesser of second-round picks owed to them from the Los Angeles Lakers and Minnesota Timberwolves in 2019 and a 2020 second-round pick via Portland, league sources said.

Cleveland will create two trade exceptions ($2.6 million and $1.4 million) with the trade. The Cavaliers will have one year to use them. The Cavaliers will save $12.8 million in luxury tax by unloading the two contracts.

On Saturday, the Cavs released center Kendrick Perkins and guard Isaac Hamilton, bringing Cleveland's roster to 15 for opening night. Perkins, a 13-year NBA veteran, told ESPN on Saturday that he isn't ready to retire and hopes to play again in the NBA. The Cavaliers have shown an interest in Perkins joining its coaching staff, and other teams over the summer wanted the 32-year-old to entertain the idea.

Jefferson, 37, averaged 5.7 points and 2.6 rebounds in 79 games last season for Cleveland, and Felder posted averages of 4.0 points and 1.4 assists in his rookie season.

Altman thanked Jefferson for being a part of the 2016 championship team in a conversation Friday evening explaining the trade, according to a source.

Jefferson acknowledged his precarious position on the Cavs' roster in an episode of his podcast with teammate Channing Frye, "Road Trippin'," that was released Friday morning.

"I'm sacrificing my way out of here," said Jefferson after Frye mentioned the sacrifices he and Jefferson made last season after being part of a championship team the previous season.

"Oh, god, come on," Frye replied. "Rich? Too soon. Too soon."

Cleveland coach Tyronn Lue didn't have much to say about the deal prior to Friday's preseason game against Orlando.

"It's a tough situation, and I haven't gotten everything figured out yet, but you know, these are the hard times of being a coach," Lue said. "It's definitely tough, and [I'm] just trying to figure it out."

After the Cavaliers' preseason win over the Orlando Magic on Friday, Lue declined to comment on the trade, and Jefferson and Felder left without talking to reporters.

Derrick Rose, who joined the team this offseason, said he was unaware Jefferson and Felder had been traded.

"Wow," Rose said upon hearing the deal. "My journey is different, but it's a business and I understand it. While they were here they were great guys."

ESPN's Dave McMenamin and the Associated Press contributed to this report.