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LeBron James has agreed to sign a two-year extension with the LA Lakers, solidifying his future with the franchise. There was a lot of speculation around his extension. Many believed he will not sign it if the Lakers fail to make significant additions to their roster.
James was eligible to sign an extension on August 4th, but many fans and members of the media believed James was waiting to see what moves the front office makes. However, NBA reporter Nate Duncan believes otherwise.
He said James signed the deal a few weeks later because of the "6 month Melo rule" so that the Lakers cannot move him before the NBA trade deadline. Duncan tweeted:
"It appears the timing of James' extension was calculated so the 6 month Melo rule would extend past this year's trade deadline and prevent the Lakers from moving him this year James had been eligible to sign it August 4. I believe this year's trade deadline will be February 9."
Nevertheless, he signed a deal that puts the King in Hollywood with the Purple and Gold for two more seasons.
What is LeBron James' new contract with LA Lakers?
LeBron James signed a two-year $97.1 million contract extension yesterday which has a possibility to increase to $111 million if the salary cap increases in the 2023-24 NBA season.
The deal puts him with the LA Lakers until the 2024-25 NBA season with a player option for the final year. It puts him on the same timeline as Anthony Davis, who also has a player option in 2024-25.
As reported by ESPN's Adrian Wojnarowski, the deal has a 15% trade kicker so the LA Lakers would have to pay him a bonus of 15% of the remaining amount on his contract. He is ineligible for a no-trade clause because he signed an extension and not a new deal. However, he cannot be traded in the upcoming 2022-23 NBA season because the second year of his extension exceeds a 5% raise.
He could only sign a two-year deal because of the "Over-38 rule" in the Collective Bargaining Agreement (CBA). The 2017 CBA doesn't allow players over 38 years of age to sign more than a three-year deal. Since James has one year left on his contract, the extension is worth two years. He will turn 38 on December 30th, 2022, before his current contract expires so he can't sign an extension for three years.
The $97.1 million deal makes LeBron James the highest-paid player in NBA history with a collective $532 million in guaranteed salary earnings. He overtook Kevin Durant after signing this extension, but he isn't expected to hold on to this title for long. The salaries of NBA players are constantly increasing and young stars will soon surpass James' total.
LeBron James will make $44.4 million this season, $46.7 million in 2023-24 and then $50.4 million in 2024-25 if he opts in.
James will still not be the highest-paid player in the league, though. When he earns $46.7 million and $50.4 million in his next two seasons, Steph Curry of the Golden State Warriors will earn $51.9 million and $55.7 million, respectively.
LeBron James' player option coinciding with Davis' player option will help the LA Lakers make significant moves in the offseason that summer. They are expected to have north of $20 million in cap space in the 2024 offseason and it will go up even further if the star duo decline their player options and sign new deals. This particular extension gives the team the flexibility to sign another max player.
Additionally, the player option in 2024 aligns his free agency with his son Bronny James' rookie season in the NBA. Bronny is eligible to declare for the draft in 2024 after a year in college. He is entering his senior year in high school and will enter the league in the same summer when his father has to decide on his player option. This gives James flexibility to leave the team and join his son if he gets picked by another franchise.
LeBron James is still playing at an MVP level and is putting up numbers never seen before from a 37-year-old. He is going to be the highest-paid 38-year-old in league history.
