At 6’8″, Williams can play multiple positions on the floor, which is what the Cavs were looking for when surveying the free-agent landscape. Williams can also be a valuable asset to the team as he can relieve Kevin Love of minutes and even games. This would help the team out because they could rest Love for a period of time, due to the fact he has dealt with a few minor back problems so far this season.
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As the team stands now, Williams may not have much of a role, but the main reason I see this signing by the Cavs working out is that they can rest Love, or LeBron James and still have a player that is a serviceable replacement.