CLEVELAND, Ohio -- The Cavaliers would have rather kept LeBron James, make no mistake.

But with James and his roughly $36 million salary this season gone to the Lakers, Cleveland has more flexibility to add to its roster through free agency if it so chooses.

For the first time in years, the Cavs' payroll is below the league's tax "apron," which means it has more to spend on free agents even though the team is still over the league's salary cap.

The Cavs' payroll is currently at about $109.5 million and there are three spots to fill. The NBA's salary cap is $101.9 million, but the tax apron is about $129.8 million. As of now, Cleveland has two salary cap exceptions it can use to add players -- the full mid-level exception ($8.6 million this season or $37 million over four years) and the bi-annual exception ($3.3 million or $7 million over two years).

Had James stayed in Cleveland, the most it could've offered any other free agent was $5.3 million.

Again, you'd rather have the player who took you to four straight Finals, but the Cavs nonetheless have some room to work to improve the roster. If they want it.

League sources told cleveland.com that the Cavs have spoken with Bulls free agent David Nwaba, 3-point shooter Luke Babbitt and bruiser Trevor Booker. Nwaba has interest in the Cavs, one of the sources said, while the conversations with Babbitt and Booker's camps were more basic.

The Cavs also extended a $3.4 million qualifying offer to their own free agent, Rodney Hood, which means they can match any offer Hood receives on the open market.

A team source said Hood, 25, remained in the team's plans -- a strong indication the team would match any offer he gets. In the past two days, restricted free agents Marcus Smart (four-year, $52 million with Boston) and Montrezl Harrell (two years, $12 million with the Clippers) signed new deals with their old teams.

The Cavs are "exploring all options" when it comes to their salary-cap exceptions, team sources say. Same goes for the $5.8 million trade exception the Cavs are sitting on from the Kyrie Irving trade last summer.

Cleveland has until Aug. 22 to accept a player (or multiple players) from another team whose salary (or salaries) fit into the $5.8 million hole. Per league rules, that's the only way a team can use a trade exception.

On the trade front, multiple outlets have reported the Cavs and Sixers engaged in discussions over Kyle Korver. The Philadelphia Inquirer said the two sides talked about a swap of Korver for Jerryd Bayless.

A team source told cleveland.com there was "nothing to report" on those talks. In the interim, it would seem the Cavs might look for more for Korver, who is 37 and still an excellent 3-point shooter on a favorable contract.

Korver will make $7.56 million this season and only a portion of his $7.5 million for next year is guaranteed. Bayless, who will be 30 next month, will make $8.6 million this season in the final year of his deal.

The Cavs, who say they will make roster decisions without worrying about the tax apron (in English, they say they don't care if they wind up paying the NBA's luxury tax penalty again, even though avoiding it would give them even more flexibility next year). Bayless therefore does not offer them cap relief.

"I think if there's a right opportunity and it's worth it for our franchise, then we can explore that," Cavs general manager Koby Altman said of the luxury tax. "I'm not saying we're definitely not going to go into the tax, but it's interesting now sort of being below it."

The Sixers, a contender in the East would want Korver, who shot .436 from 30-point range last season, to take over off the bench for Marco Belinelli, who signed with the Spurs. But unless the Cavs want to do right by Korver and trade him to a team with higher hopes than they have, they'd probably want a draft pick in any deal they cut for him.

Nwaba, 25, averaged 7.9 points and 4.7 rebounds for the Bulls last season. Chicago recently rescinded Nwaba's qualifying offer, so he's an unrestricted free agent.

Booker, 30, averaged 6.3 points and 4.7 boards for the Pacers last season. Babbitt, 29, born in Cincinnati, averaged 5.2 points and shot .385 last year for the Hawks and Heat.

Another potential fit could be Celtics free agent guard Shane Larkin, who averaged 4.3 points last season but proved a capable backup in the early rounds of the playoffs before a shoulder injury knocked him out against Cleveland.

The Cavs may be in the market for a third point guard behind George Hill and rookie Collin Sexton.

Also, if forward Okaro White is still on Cleveland's roster on Aug. 5, half of his $1.5 million salary for this season is guaranteed.