Cleveland Cavaliers Make First Big Trade of the NBA Season and Clear Cap Space

The Cleveland Cavaliers have made a trade that helps clear up some cap space.

Jan 19, 2026; Cleveland, Ohio, USA; Cleveland Cavaliers forward De'andre Hunter (12) loses the ball as he drives against Oklahoma City Thunder guard Aaron Wiggins (21) during the second half at Rocket Arena. Mandatory Credit: Ken Blaze-Imagn Images | Ken Blaze-Imagn Images

It has finally happened.

The Cleveland Cavaliers have decided to make their first roster move of the regular season as they are in a three-team trade with the Sacramento Kings.

The news was broken about the trade by NBA inside Shams Charania. The Cavaliers are trading forward De’Andre Hunter to the Sacramento Kings for point guard Dennis Schroeder and guard Keon Ellis.

BREAKING: The Cleveland Cavaliers are trading De'Andre Hunter to the Sacramento Kings for Dennis Schroder and Keon Ellis, sources tell ESPN. The three-team deal includes the Chicago Bulls acquiring Kings forward Dario Saric and two future second-round picks. pic.twitter.com/Hoc6bP0hhj

— Shams Charania (@ShamsCharania) February 1, 2026

This trade comes after a long debate about Hunter's play this season. The team has been surprised about how poorly he has performed. After days of trade speculation, Hunter will be on the move.

Hunter was in multiple trade discussions before this move was made with theLos Angeles Lakers showing interest in a move. However, Hunter will land in Sacramento as the Kings were the first team to agree on a deal.

In making this trade, the Cavaliers were able to improve the team in multiple ways. To start, the Cavs get more backcourt depth with Schroeder and Ellis. Schroeder is a premier playmaker and Ellis was one of Sacramento's better scorers. As the Cavaliers deal with Darius Garland's toe injuries, backcourt depth can help carry them throughout the rest of the season and depth will certainly be welcomed come time for the NBA Playoffs.

How this trade impacts Cavs salary cap situation

This trade also clears $50 million in cap space. It's a move that brings the Cavaliers closer to escaping the second apron and avoiding punishments from the NBA. When an NBA team is in the second apron, it prohibits them from aggregating salaries in trades and makes it much more difficult to improve their roster.

This trade moves the Cavaliers one step closer to being below the second apron avoiding those penalties and giving the team a bit more flexibility with the trade deadline approaching on Thursday, Feb 5 at 3:00 p.m.

Ellis is averaging six points per game this season and is in a big of a slump compared to his career numbers last season. Schroeder is averaging 13 points along with five assists and is an established NBA veteran playing for his 11th NBA team. This trade feels like a deal that gives the Cavs more wiggle room as they give up on an expensive player that had underwhelmed.

The Cavs could still be looking to make at least one more move with Lonzo Ball having interest from a few teams. With the additions of these two guards from the Kings, it leaves the spot for Ball to go elsewhere this year.