The 3-team deal will send guards Dennis Schröder and Keon Ellis to the Cavs in exchange for forward De’Andre Hunter.

CLEVELAND — The Cleveland Cavaliers addressed their backcourt depth and reduced their luxury-tax burden Saturday night, agreeing to a three-team trade that sends forward De’Andre Hunter to the Sacramento Kings and brings guards Dennis Schröder and Keon Ellis to Cleveland.

The Chicago Bulls are also part of the deal, acquiring forward Dario Saric and two future second-round draft picks from Sacramento to complete the trade structure.

The move allows the Cavaliers to convert Hunter’s contract into two guards and some measure of financial flexibility going into next season.

News of the trade was first broken by NBA insider Shams Charania. The Cavs confirmed the three-team deal on Sunday afternoon.

Schröder, a 13-year veteran from Germany, is averaging 12.8 points and 5.3 assists this season after signing with the Kings in the offseason. He is expected to provide Cleveland with an experienced ballhandler capable of stabilizing the second unit and offering insurance at point guard.

Ellis, 26, is regarded as one of the league’s stronger perimeter defenders. He is averaging 5.6 points this season, ranking among NBA leaders in steals and blocks per 36 minutes. Ellis is on an expiring contract and becomes eligible for an extension on Feb. 9. 

In moving Hunter, the Cavaliers are expected to save approximately $50 million in combined salary and luxury-tax payments this season, a reduction that positions the club more favorably as it navigates the league’s second tax apron in future years.

“After careful evaluation and a clearer view of the Eastern Conference landscape, we believe adding Dennis and Keon strengthens our depth, expands our flexibility, and positions us to keep building a Championship caliber team now and into the future,” said Altman. “In a season defined by its parity, this move better aligns us for a deeper postseason run. I’m thankful as well to De’Andre, who made an immediate impact upon his arrival to Cleveland and represented the Cavaliers with class. We appreciate everything he did for us both on and off the court, and we wish him the best in Sacramento.”

Hunter, 28, averaged 14.0 points and 4.2 rebounds in 43 games with Cleveland this season, but has struggled with offensive consistency and fit in Kenny Atkinson’s offensive system. 

He joined the Cavaliers last year after spending the first five seasons of his career with Atlanta and is under contract through the 2026–27 season. 

In a corresponding move, Cleveland waived Australian-born forward Luke Travers. The Cavaliers’ second-round draft pick in 2022, Travers appeared in 12 games for the Cavs this season and started 10 games out of his 15 total appearances for the G-League affiliate Cleveland Charge. 

“We drafted Luke in 2022 and have seen his development improve each year and thank him for his contributions to the franchise,” Altman said of Travers.