The Cavaliers have over $77 million in active contracts with a salary cap of $94 million.
Oh, and that's before counting LeBron James' $30 million salary cap hold.
What does this have to do with J.R. Smith?
They can't replace his contract on the open market. The Cavaliers are allowed to go over the salary cap to retain their own players, but not bring in new ones.
Even if the Cavaliers want to someday trade for new players, they better have guys with matching salaries in order to do it.
But just how much could J.R. Smith cost the Cavaliers? Lucky for them, he has become a two-way player who is deadly from the outside. Unlucky for the Cavaliers he's made himself extremely valuable when teams have far too much money to spend.
The Cavaliers might have no choice but to spend way too much money on J.R. Smith. And as long as he keeps playing well and the Cavaliers keep winning, that's not a bad thing.