Photo: Cleveland Cavaliers/X

The Cleveland Cavaliers want to bring back guards Ty Jerome and Sam Merrill during the upcoming offseason. Both players are set to become unrestricted free agents in July, meaning they can sign with any team.

Although Cavaliers President of Basketball Operations Koby Altman has publicly stated his intention to retain both players, the team may face significant financial obstacles.

Jerome and Merrill earned salaries close to the league’s veteran minimum last season, but after their performances, both are expected to command more lucrative contracts this summer.

The Cavaliers hold only Early Bird rights for Jerome, which restricts how much they can offer him in a new deal. This essentially caps Cleveland’s offer at a level similar to the Non-Taxpayer Mid-Level Exception (MLE), a contract many other teams are also able to offer.

That could spark competitive bidding for Jerome’s services.

In contrast, Cleveland has full Bird rights for Merrill, allowing them to offer a larger contract without the same restrictions. However, Merrill has never earned more than the minimum in his career and may now seek a more substantial payday.

Adding to the complication is Cleveland’s current financial situation. The team is already over the league’s second luxury tax apron even before accounting for potential new contracts for Jerome or Merrill.

Committing more salary could push the Cavaliers deeper into luxury tax territory, raising questions about how far the team is willing to go financially. As a result, Cleveland may ultimately be unable to afford to keep Jerome, Merrill, or possibly both.