The Cavs have begun to aggressively pursue sign-and-trade deals involving the 6-foot-10, 250-pounder from Brazil, but a league source said they aren't going to take back inferior players just so Varejao can be overpaid.
Varejao said he's waiting for Cavs general manager Danny Ferry to ''show me that he values my contribution to the team. I just want to be treated fairly and I don't think Danny's done that.
''I wanted to come back. I love the fans and I really love my teammates. But there are others there that have made it very difficult. It's gotten to the point that I don't want to play there anymore. I'm just hoping for a sign-and-trade at this point.''
Ferry said he made a surprise visit to Varejao at his parents' home in Brazil in October because he said agent Dan Fegan and Sandro Varejao cut off all communication between him and the player. Sandro is Varejao's older brother, who is now working for Fegan.
''It was inaccurate to say I went down there to make him sign a contract,'' Ferry said yesterday. ''That's totally incorrect.
''I told him we are not paying him $10 million a year. My conversation was, ÔYou have to share the risk. You can take a shorter deal or a longer deal. I'll work with Dan (Fegan). But we are not going to do something stupid.' ''
Some think the move backfired on Ferry. Since that day, negotiations have cooled considerably.
Varejao said he was shocked when Ferry showed up at his door.
''He showed up and wanted me to sign a contract,'' he told ESPN. ''I told him he's got to talk to my agent.''
Fegan is known as a shrewd negotiator around the league. But Varejao said he's calling the shots.
''This is me,'' he said. ''Nobody else. (Fegan) takes the offers to me and I decide. He's told me he'll get a deal done for less. I've told him no. It's me.
''(The Cavs) told me how important I was to the team. I just want to be treated fairly.''
Varejao, 25, said he's willing to play in Europe if that's what it takes. If he does, it will be for around $2 million a season.
''I know it's a risk and I'll be a restricted free agent next year, but at least I'd be happy,'' he said. ''I don't think I'll be happy in Cleveland knowing that I was (almost) the lowest-paid player there for three years and am still paid much less than players on the team that I outperform. Life's too short to be unhappy.''
Media reports that he's asking for a contract averaging $10 million or $11 million a season ''just aren't true,'' Varejao said.
However, Fegan's first proposal to the Cavs on Sept. 27, a source said, was for six years, $64 million. Then, a month later, on Oct. 27, it dropped to six years, $52 million.
The Cavs' latest offer is reportedly for five years, with an average of $6.5 million a season. With incentives, it could rise to almost $8 million. Every year of the deal is above the mid-level exception of $5.4 million.
If Varejao didn't want to remain a part of the Cavs' core, he should have taken the qualifying offer of $1.2 million and become unrestricted after this season. Some think Fegan screwed up by not taking the qualifying offer.
Some team executives say Varejao is worth the mid-level, possibly a little more. There's no questioning his importance to the Cavs, however. He averaged 6.8 points and 6.7 rebounds in 23 minutes last year, and led the league in drawing charges. His absence has affected the Cavs' defense, which has been a bit porous in their first 14 games.
One risk of the Cavs' hard stand is how it affects All-Star forward LeBron James. He was close with Varejao and realizes his importance on the team. No one wants James to become disgruntled.
''He keeps telling me he wants me back, but to get the best deal I can and to take care of my family,'' Varejao said.
As far as Varejao saying he doesn't want to return to Cleveland, that doesn't faze Ferry.
''It doesn't bother me at all,'' he said. ''I can't worry about that. It's an emotional time for everyone involved. It's negotiating.''