McCaw played just three games in Cleveland after signing a nonguaranteed two-year, $6 million deal with the Cavaliers.
The Warriors held McCaw's rights as a restricted free agent, then elected not to match the two-year, $6 million offer sheet he signed December 28 with the Cavaliers - with the potential luxury-tax ramifications among the many factors in their thinking.
The Raptors, who waived Lorenzo Brown on Monday, will welcome McCaw as a depth piece.
But the former second-round pick was a restricted free agent. Golden State declined to match the sheet. It was the end of a freaky saga that involved a half-season holdout, an offer sheet, a surprising release, and an ongoing investigation by the National Basketball Association into how it all went down.
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After only a week in Cleveland, McCaw was waived before his contract was guaranteed.
National Basketball Association officials will speak to Patrick McCaw's representatives Thursday, as the league begins an investigation centered on McCaw and the Cavaliers, according to Mark Medina of the San Jose Mercury News.
The NBA is investigating the Cavs for possibility circumventing the salary cap after waiving McCaw. "But if the National Basketball Association voided McCaw's contract, he could become a restricted free agent again".
McCaw averaged 1.7 points and one rebound in three games with Cleveland this season before his release.
McCaw was sidelined for nearly two months with a bone bruise in his lower back near the end of last season after a horrific fall during a game at Sacramento.