86-87 was the first year that "Dinner Bell" Mel Turpin was not on the roster. The amount the team saved that year in Mel's meal money alone was invested and twenty years later is paying for The Chosen One's contract extension. Hence the celebratory insignia.
As a Cavs fan who came of age in this "era" I know very well what this patch commemorates. The greatest Cavs team ever. When you have never won anything, you need to find something to celebrate. This was the season in which they drafted Brad Daugherty, John "hot Rod" Williams and Ron Harper, traded for the rights to Mark Price, signed Craig Ehlo and hired Lenny Wilkens. It was the beginning of the greates period in the team's history. The following year they added Larry Nance. Again...this ain't the Celtics....they need to celebrate somthing.