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Insider: Why Ricky Rubio's reported return to the Cavs could benefit the Pacers

Free agent Ricky Rubio is headed back to the Cavs on a three-year deal worth $18.4 million, Yahoo Sports' Chris Haynes reported Friday, and it could benefit the Pacers.

The 31-year-old guard was traded to Indiana in February in a deal for Caris LeVert, but he never played for the Pacers due to a torn left ACL he sustained in December. Rubio was included in the trade because he was on an expiring contract, made the salaries match and created cap space for Indiana.

Although he didn't suit up for Pacers, the veteran guard could still help them improve. When Rubio was initially traded, Indiana also received the Cavs' 2022 lottery protected first-round pick. The Pacers were in line to receive that pick until Cleveland lost to Brooklyn and Atlanta in the Play-In Tournament and failed to make the playoffs, but the agreement carries over to this season as well.

More: 5 players Indiana Pacers should consider in free agency: Is Deandre Ayton worth the price?

Dec 18, 2021; Milwaukee, Wisconsin, USA; Cleveland Cavaliers guard Ricky Rubio (3) calls a play in the third quarter during the game against the Milwaukee Bucks at Fiserv Forum. Mandatory Credit: Benny Sieu-USA TODAY Sports
Dec 18, 2021; Milwaukee, Wisconsin, USA; Cleveland Cavaliers guard Ricky Rubio (3) calls a play in the third quarter during the game against the Milwaukee Bucks at Fiserv Forum. Mandatory Credit: Benny Sieu-USA TODAY Sports

So if Rubio, who's still rehabbing his left knee, can return to form and help the Cavs make the playoffs, the Pacers would receive Cleveland's 2023 lottery-protected first-round pick. Rubio averaged 13.1 points, 6.6 assists and 4.1 rebounds in 34 games last season while mentoring All-Star point guard Darius Garland. The Cavs were also nine points better per 100 possessions with Rubio on the court last year.

However, if Cleveland doesn't make the playoffs for the second straight year, it would retain its lottery protected first-round pick, and Indiana would receive the Cavs' 2025 second-round pick and a 2026 second-round pick via the Lakers that Cleveland currently owns.

The Cavs could also benefit from making this a sign-and-trade for salary cap reasons, sending the Pacers a player in exchange for Rubio.

July 6 is the earliest free agent signings and trades can become official. The NBA's moratorium began Thursday evening, allowing contracts to be agreed on in principle. Players and teams can still change their minds and call off deals during this period.

Follow IndyStar Pacers beat writer James Boyd on Twitter: @RomeovilleKid. Reach him via email: jboyd1@gannett.com.

This article originally appeared on Indianapolis Star: NBA free agency 2022: Ricky Rubio's return to Cavs could benefit Pacers