I doubt that this is true:
- the timing is strange, not just because of the Gee negotiations, but also because Casspi is now playing with the Israeli team and wouldn't want this distraction at this moment in time. If the Cavs reached out, his likely response would be: not now, we'll talk after the Israeli team tournament;
- Casspi's dream was to play in the NBA; it is something he has repeatedly stated for years. Sure, he can get a nice contract in Israel or Europe, but I doubt that is what he wants at this stage of his career. During the lockout, he had some tentative discussions with Israeli and European teams, but he didn't want to do anything which would jeopardize playing in the NBA.
- if he can start the season strong, he may have some value for certain teams in the league, just like Walton's expiring has some value. Would the Cavs throw that away, while still having to pay Casspi a certain amount, to keep guys like Harangody and Eric around?
On the other hand, he now has an Israeli girlfriend, who apparently isn't keen on leaving Israel. Who knows, maybe that would have some influence.