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I might be misremembering, but haven't the Cavs already shown they'd go into the luxury tax for a contender, as they did in the (second) LeBron era?

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They will think harder before doing so again. The Warriors, Nets, and Clippers have a half-billion or so to be distributed to all the nonpaying teams. That's new, and hard to pass up.

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Definitely agree that they won't do it for this team now, but if they have a legit title chance I think Dan Gilbert would pay a LOT of money to stick it to LeBron at least a bit

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