CavsKermit
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There's a third option - extend him for three years instead of four at around $25M per. I really think that smart teams are going to figure out that longer extensions aren't really worth it in the player empowerment era. You're not sharing risk with the player anymore, you're just assuming it.The proper course of action was to trade Love instead of extending him. Anyone could have predicted Love not aging graceful (and people did) but Koby offered a sentimental contract to Love based on the past rather than what he could give in the future.
Normally after a title window closes, teams liquidate their roster to start over. Love had value at one point then Koby gave a massive extension which made him untradeable from the start.