Getty LeBron James #23 of the Los Angeles Lakers.
LeBron James‘ return to the Los Angeles Lakers was long expected. But what was startling was the terms of his new contract.
According to multiple reports, the 39-year-old Lakers superstar agreed to a two-year, $104 million max deal with a player option instead of the full three-year, $162 million he was eligible to sign.
The Athletic’s Shams Charania first reported the news.
It was a telling decision by James as he maintained full control of his future.
Basically, James decided to return for one more guaranteed season to play with his son, Bronny, whom the Lakers drafted 55th overall.
They are about to make history as the first father-and-son duo to play for the same team in the NBA.
By also taking only one guaranteed season, he’s putting the pressure on the Lakers organization to not waste this season.
James can opt out after this season and play elsewhere if the Lakers fail to win a championship. Or he can retire if he feels he no longer has the motivation to play as he has already fulfilled his dream of playing with his son.
LeBron James Open to Give Lakers $1 Million Discount
ESPN’s Adrian Wojnarowski reported James is still open to giving the Lakers a small discount despite their failure to land an impact player on his wish list.
James’ agent Rich Paul, and the Lakers are still talking about taking $1 million less than the max to create flexibility, according to Wojnarowski.
As of now, the Lakers are slightly above the $188.9 million second apron. Going under the second apron would give the Lakers access to the $5.2 million taxpayer midlevel exception and allow them to use trade exceptions created from a new trade.
Before James agreed to his new deal, it was widely reported he was open to taking significant paycut if the Lakers could add an impact player via sign-and-trade or the non-taxpayer $12.9 million full midlevel exception. However, their top three targets — Klay Thompson, James Harden and Jonas Valanciunas — have signed elsewhere.
James reportedly would have also taken a discount for unrestricted free agent DeMar DeRozan to join the Lakers. However, DeRozan, a six-time NBA All-Star, was not amenable to take their full midlevel exception.
DeRozan declined the Bulls’ two-year offer worth $40 million annually, according to NBC Sports-Chicago’s K.C. Johnson in April. The $13 million MLE would be a substantial paycut.
LeBron James Gets No-Trade Clause
James’s new deal with the Lakers also came with the no-trade clause, becoming the only second active player in the NBA next to Bradley Beal, who has that perk in his contract.
The no-trade clause gives James the power to veto any trade involving him. But given James’ stature, he virtually possessed that power throughout his career. Last season, when the Golden State Warriors approached the Lakers for a possible trade, the team consulted with James, who quickly shut it down.
For a player to be eligible for the no-trade clause in his contract, he needs to have played eight seasons in the NBA, at least four with his current team, and it must be included in a new contract, not via extension.