J.R. Smith to re-sign with Cavs on reported 2-year, $10M deal

The Cleveland Cavaliers have agreed to re-sign J.R. Smith, according to a report from J.R. Smith.

Smith posted the following to his Instagram page on Thursday:

CAPTION: Happy to say that I am returning to the Cavs! It’s been a long ride this summer but I can say for sure, well worth the wait. When I opted out of my contract, I wanted to understand the landscape of the NBA and where I fit best. The Cavaliers had things they needed to do in order to piece together a championship caliber roster. I ended up deciding that instead of potentially securing a larger deal elsewhere, I wanted to rejoin an incredible organization in pursuit of the ultimate goal, an NBA championship. Thank you to the Cavaliers for making this happen. Can’t wait to get started! #TheLand

And Smith's return isn't all that surprising. The mercurial shooting guard may have misjudged the market for his services, declining his $6.4-million player option. With so few teams owning cap space and the win-now intention that would make a Smith gamble worthwhile, it seemed a lesser deal with Cleveland was always his most likely outcome.

Smith will have to make the same player-option decision again next summer, as his new contract is a two-year deal with a player option for the second season, according to Chris Haynes of Northeast Ohio Media Group. The contract will pay him $5 million in 2015-16, and approximately $10 million over the life of the deal, so while he took a haircut on annual salary, he did secure himself roughly $3.6-million in additional guaranteed money.

The Cavaliers also gave Smith a no-trade clause, Haynes reports.

Cleveland could find itself with the largest luxury tax bill in history this season, and with Iman Shumpert, Matthew Dellavedova, Mo Williams, and Joe Harris all capable of playing the two, Smith would have been a luxury the Cavs could live without had the price been too cumbersome.

Smith's $5-million salary will carry enormous financial ramifications with it. Excluding any potential deal for restricted free agent Tristan Thompson, the Cavs now have $100 million committed to payroll, with roughly $29.9 million in anticipated luxury tax payments on top of that.

It's all worthwhile to keep LeBron James happy and try to bring a championship to the city of Cleveland for the first time in decades.

Despite a seemingly tepid market for his services, Smith would have been missed in Ohio, as his shooting was a welcome addition on the wing last season. After being acquired in January, Smith shot 39 percent from long-range, averaging 12.7 points, 3.5 rebounds, 2.5 assists, and 1.4 steals in 46 games. In 762 games with four teams over 11 seasons, Smith has averaged 13.2 points, 3.3 rebounds, 2.3 assists, and one steal while shooting 37.2 percent from outside.