3 things to know about Tristan Thompson's deal

After months of deliberation, the Cleveland Cavaliers finally managed to lock power forward Tristan Thompson into a five-year, $82-million extension.

It's certainly a generous offer for the 24-year-old Canadian, especially since the Cavaliers also shelled out $110 million for starter Kevin Love. But after a breakout performance in the NBA Finals, Thompson was due for a significant pay bump.

Here are three things to know about Thompson's deal and how it will affect the Cavaliers:

$82 million is a ton of money

It's important to keep in mind that Thompson's salary was negotiated with an eye towards the escalating salary cap. With the league on the precipice of an enormous influx of TV revenue, Thompson was going to get his money one way or another.

The growing cap also makes it difficult to compare contracts signed in different years. For example, Stephen Curry signed a four-year, $44-million extension, which is a massive bargain next to some of the contracts signed this summer (for comparison, Brandon Knight signed for $70 million).

With that being said, $82 million is still a ton of money, and depending on the interpretation of the fluid term "power forward," Thompson's average annual salary makes him the sixth-highest paid player at his position for the upcoming season.

Some players - like Sacramento Kings center DeMarcus Cousins - are lamenting the fact that they signed their deals when the salary cap was much lower.

As for the Cavaliers, Thompson's deal pushes them neck-deep in luxury tax payments for the foreseeable future. They'll also enter the season with the second-highest payroll of all time, which comes part and parcel with doling out $290 million in a single summer.

What was the cost of the holdout?

The Cavaliers initially approached Thompson with an $80-million offer. That, however, fell far short of Thompson's demands for a maximum contract worth $94 million, which led to a distended stalemate that lasted months.

In the end, Thompson squeezed out an extra $2 million, which is nothing to sneeze at, but it represents a mere pittance of his total haul, and Thompson made a few sacrifices of his own.

First, there's the hit to his public image. NBA negotiations pit millionaires against billionaires, and most fans have little appetite for such high-stake showdowns. And by dragging out the process through the NBA's dead period throughout the summer, headlines quickly turned to headaches with Thompson's negotiations. It seemed like too much hubbub for a player who had yet to average over 12 points or 10 rebounds.

Second, Thompson's holdout forced him to sit out Team Canada's Olympic qualifiers in Mexico. Even without Thompson, the Canadians still featured a loaded roster chock-full of young NBA talent, but a leaky defense was their ultimate undoing in the team's controversial heartbreaker against Venezuela. A victory would have earned Canada a guaranteed spot in the 2016 Olympics. A defense-first player like Thompson might have bridged that gap.

Third, the holdout forced Thompson to miss almost the entirety of training camp. Per CBA mandates, Thompson wasn't allowed to practice with the team, and the season is only five days away.

Winning ain't cheap

In all likelihood, Thompson's deal will grade out as a poor production-per-dollar investment. The Cavaliers' championship calculus, however, is far more complex.

Thompson still holds upside; he's a versatile defender, and an elite hustle player, but that falls well short of $16 million per year, even when factoring in the rising cap. He'll come off the bench when the Cavaliers are fully healthy and just from a raw production standpoint, he won't play the kind of minutes that will warrant a near-max deal.

His deal wouldn't make sense for most teams, but the Cavaliers aren't most teams. So long as LeBron James is in his prime, Cleveland is on a mandate to win the title. And while Thompson's total production isn't worth the price, it's about accruing marginal value for championship contenders.

As Thompson proved in the playoffs, certain matchups will favor Thompson's relentless hustle and quick feet on defense. He's great at switching onto guards in the pick-and-roll, and he's impossible to keep off the offensive glass. He gives the Cavaliers another dimension that they'll need against elite teams.

Thompson makes a loaded team like Cleveland better, and that's the bottom line, even when it burdens the financial bottom line to a staggering degree.