According to team sources, General Manager Danny Ferry has permission from Cavs ownership to exceed the luxury-tax threshold for the first time in team history. Ferry has made it clear behind the scenes, however, that he does not want to hamstring himself with unmovable contracts.

In other words, restricted free agent Anderson Varejao is not untouchable, and the winds suggest the Cavs would let him walk rather than match a deal they consider unreasonable.