Snow has been sidelined all season with an injured left knee. The Cavaliers made a medical insurance claim, which was approved by the NBA, and the team will only be responsible for a portion of Snow's $7 million salary. He will be dropped from Cleveland's roster and in insurance and luxury tax savings, the Cavs will trim their payroll by nearly $11 million.
The 13-year veteran tore cartilage in his knee before last season. He appeared in 847 games and made the finals with Seattle, Philadelphia and Cleveland.
"Eric meant a lot, not only to the team on the floor but to our organization," Cavs coach Mike Brown said. "He was a guy who brought a lot of toughness and veteran leadership. He helped us win and establish ourselves for who we are, which is a good defensive team. Give Eric a lot of credit for help laying that foundation."
Snow has been working as a TV analyst for NBA TV. He hopes to pursue a coaching career.