Cleveland is signing Markkanen to a four-year, $67 million contract, sources told ESPN.
The Cavaliers are sending forward Larry Nance Jr. to the Portland Trail Blazers and a 2023 second-round draft pick via the Denver Nuggets to Chicago in the trade. Portland trades forward Derrick Jones Jr. and a lottery-protected 2022 first-round pick to Chicago, sources said.
Markkanen, 24, had been searching for a new home as a restricted free agent, and he arrives with a reshaped Cavaliers lineup that includes No. 3 overall pick Evan Mobley and center Jarrett Allen, owner of a new $100 million contract extension. The Bulls acquired San Antonio's DeMar DeRozan in a sign-and-trade this summer. Markkanen averaged 13.6 points and 5.3 rebounds for the Bulls last season.
Nance is a versatile defender and promises to have a significant impact on a Portland roster determined to improve defensively under new coach Chauncey Billups.
The Bulls bring back two draft picks for a player they no longer considered part of their future plans. The Blazers' first-round pick in 2022 is protected pick Nos. 1-14 through 2028, when it would become a second-round pick if not previously conveyed to Chicago.