According to Shams Charania of The Athletic, the 23-year-old is signing a one-year, $786,000 deal with the franchise. He began the season under control by the Golden State Warriors but was signed by the Cavaliers to a two-year, $6 million non-guaranteed offer sheet on December 28.
The Cavs waived McCaw after less than a week with the team, allowing him to become an unrestricted free agent.
No one is exactly sure why the Cavs made a decision to go through with that plan, but they are being investigated by the league for possibly salary cap circumvention.
McCaw held out of the Warriors' training camp and the opening half of the season searching for an offer sheet, and he played three games without the benefit of practice for the Cavaliers. Teams often either promote their two-way players to a full National Basketball Association contract (there is no obligation to keep both G League two-way spots full) or target an unrestricted free agent to keep for the short term.
He reportedly reached a deal with the Eastern Conference-contending Toronto Raptors on Wednesday. After passing on the Golden State Warriors' qualifying offer this summer, McCaw found it hard to find another offer. Most league executives are skeptical that the Cavs would be punished. McKinnie played in 14 games for Toronto last season, and his Warriors contract became guaranteed Monday. They were able to get McCaw for a minimum salary for the remainder of the season, a signing that would have earned them many accolades if it happened during the summer.