Assuming that Love and Lebron remain in Cleveland, the Cavs will be over the cap next season. They plan on using his unguaranteed contract like a trade exception to absorb a contract from another team.
Imagine that Denver's season gets even worse and they blow it up, including trading Javale McGee and Aaron Afflalo to Cleveland for Haywood's contract, Dion Waiters, and whatever picks they can get out of it.