were drafted and have never left the Cavs (I think there is maybe one rookie making less than $1M, but no one else I see). Tristan Thompson and Kyrie Irving.

Wouldn't not allowing luxury tax exceptions for the other 10 players on their roster that have come from other teams help solve some of this. No one besides Thompson or Kyrie should be getting exceptions, and even that should have a cap of some sort (how much of that retained, drafted player still hits the cap). I think the sign and trade shouldn't be allowed to be luxury exceptions to the hard cap, because I assume that is how someone like Kevin Love has some of the exception you are referring to (just double checked, looks like he came and then signed a max extension with the Cavs so I guess not applicable here).

Obviously it gets more complex than that, but I think tightening up the restrictions for at least a "harder" cap would help.

I know it is a late reply (east coast time zone). I posted and went to bed.