LeBron James did the Los Angeles Lakers a big favor, re-signing for less than the max to help the team avoid salary cap restrictions.
The Lakers officially announced James’ two-year extension for $101.35 million on Saturday. It was initially reported that the four-time MVP would sign for the maximum of $104 million. By taking off $2.7 million, the Lakers will avoid the second apron by $45,000.
Bobby Marks of ESPN explained the implications of James’ decision in more detail.
“What does this mean? Barring a trade to put them over, the Lakers project to finish the 2024-25 season below the 2nd apron. Their 2032 first would not be subjected to the Draft pick penalty (eligible to trade next summer),” Marks wrote. “However, they are still restricted to take back more salary (unless it is $45K or below) in a trade or aggregate contracts if the post transactional salary exceeds $188.9M.”
What does this mean?
– Barring a trade to put them over, the Lakers project to finish the 2024-25 season below the 2nd apron. Their 2032 first would not be subjected to the Draft pick penalty (eligible to trade next summer).
However, they are still restricted to take back more… https://t.co/gj1scJWc40
— Bobby Marks (@BobbyMarks42) July 7, 2024
James’ deal includes a player option for the second season and a no-trade clause.
LeBron James Was Willing to Take Pay Cut
James’ agent, Rich Paul, previously told ESPN that he’d be willing to take a pay cut if it meant the Lakers could add an impact player. Some names mentioned as potential candidates included James Harden, Klay Thompson and Jonas Valančiūnas. All three locked in their futures with other teams.
DeMar DeRozan was also thought to fit that description. However, the six-time All-Star landed with the Sacramento Kings on Saturday via a sign-and-trade.
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