NEW YORK — After losing out on LeBron James, the Cleveland Cavaliers began reshaping their roster, agreeing to a one-year contract with Croatian forward Mario Hezonja as the Eastern Conference arms race continued Sunday.

Hezonja agreed to a one-year, $2.8 million deal that will bring him back to the National Basketball Association (NBA) for the first time since the 2019-20 season, according to ESPN.

The 31-year-old spent the past several years rebuilding his career in Europe, most recently with Real Madrid. Hezonja was named the Spanish Liga Endesa Most Valuable Player last season after averaging 17.5 points and 4.9 rebounds while giving Cleveland another scorer with size on the wing.

The agreement came two days after the LeBron James sweepstakes ended with the four-time NBA champion choosing the Philadelphia 76ers over a return to Cleveland and several other contenders.

James signed a two-year contract worth about $8 million, including a second-year player option, and joined a Philadelphia roster that has undergone a dramatic offseason makeover.

The 76ers had already acquired Jaylen Brown from the Boston Celtics in a trade involving Paul George and draft compensation. They also signed former Cleveland forward Dean Wade and guard Anfernee Simons before reaching an agreement with James.

Kentavious Caldwell-Pope will be Philadelphia’s latest veteran addition after clearing waivers following a contract buyout with the Memphis Grizzlies.

The moves place James alongside Joel Embiid, Tyrese Maxey, Brown and second-year guard VJ Edgecombe, giving Philadelphia one of the conference’s most accomplished — and most expensive — rotations.

James’ decision was a blow to Cleveland, which had hoped to reunite with the Ohio native for a third stint after reaching the Eastern Conference finals last season.

The Cavaliers were swept by the New York Knicks, who went on to win their first NBA championship since 1973. Cleveland now enters the 2026-27 season attempting to remain among the East’s contenders behind Donovan Mitchell, James Harden, Evan Mobley and Jarrett Allen.

Hezonja represents a low-cost addition rather than a replacement for James, but his shooting and scoring could help a Cleveland bench that needs additional production.

The 6-foot-8 forward was selected by Orlando in the 2015 NBA draft and averaged 6.9 points over five seasons with the Magic, New York Knicks and Portland Trail Blazers. He last appeared in an NBA game in August 2020.

Hezonja later played for Panathinaikos, UNICS Kazan and Real Madrid, winning the EuroLeague championship with Madrid in 2023 and consecutive Spanish league titles in 2024 and 2025.

His arrival does little to settle an Eastern Conference hierarchy that has shifted considerably since the Knicks completed their championship run.

New York returns its core led by Finals MVP Jalen Brunson, Karl-Anthony Towns, OG Anunoby, Mikal Bridges and Josh Hart. Philadelphia has emerged as perhaps the Knicks’ strongest challenger after surrounding James with another former NBA Most Valuable Player in Embiid, two All-Star-caliber scorers in Maxey and Brown, and several proven veterans.

Cleveland remains in that conversation after reaching the conference finals, although the Cavaliers lost Wade to Philadelphia and must determine whether the same core can take another step without James.

For the Cavaliers, Hezonja is the first response to a free agent decision that shifted the balance of power in the East. Whether it is enough will depend on how successfully his European form translates during his second opportunity in the NBA.