LeBron James has opted out of his contract with the Los Angeles Lakers for next season, his agent, Rich Paul, told ESPN’s Dave McMenamin, but he is not expected to be a free agent for long.
According to Paul, James is willing to work with the Lakers on a new deal that would be below the three-year, $162 million maximum contract he is eligible for in order to open up the full $12.9 million mid-level exception to allow for the at-large contract. Manager Rob Pelinka will sign an “impact player.”
What kind of “impact player”? According to ESPN, it could be James Harden, Klay Thompson, who is expected to hit free agency, or a big man who can play alongside Anthony Davis.
“He’s prioritizing improving the roster,” Paul told ESPN on Saturday. “He’s been adamant about showing every effort to improve the roster.”
James had until 5 pm ET to inform the Lakers of his decision.
Last a free agent, James joined the Lakers in 2018, signing a four-year, $154 million contract to head West. He signed a two-year, $97.1 million extension with Los Angeles in 2022, which included a player option for next season.
James is eligible to sign a three-year contract worth a maximum of $162 million to return to the Lakers as a free agent. He is also eligible to sign with any other NBA team for a maximum of $157.5 million over the next three seasons. (The NBA limits contracts for players 38 or older to a maximum of three years.)
The 39-year-old is the oldest active player in the NBA, but he shows no signs of slowing down. James averaged 25.7 points (on 54/41/75 shooting percentage), 8.3 assists and 7.3 rebounds per game last season, earning him third-team All-NBA honors. He led the Lakers to a berth in the play-in tournament and the No. 7 seed in the Western Conference. They lost to the Denver Nuggets in the first round of the playoffs.
Although his free agency decisions are unclear, James said he wanted to retire as a Laker during the 2024 All-Star weekend in February.
“I’m a Laker and I’ve been very happy being a Laker the last six years, and I hope it stays that way,” James said, just before making his record 20th All-Star Game appearance.
Another consideration was James’ son, Bronny, who was selected by the Lakers with the 55th overall pick on Thursday. James has repeatedly said he hopes to play his final NBA season with Bronny, but he recently said he won’t necessarily leave the Lakers to join his son if he’s drafted by another team, and his agent Rich Paul clarified that the two aren’t a complete package.
Right now, the Philadelphia 76ers are the only championship contenders with the most cap space. James could also orchestrate a sign-and-trade deal with another team or sign anywhere for as little as the veteran minimum, though Paul all but ruled out the latter to ESPN’s Jonathan Givony.
“LeBron is not going to Phoenix for a minimum contract either,” Paul said. “We can now rule out that possibility.”
At the very least, James will take a pay cut for the 2024-25 season. His maximum starting salary of $50 million is almost $1.5 million less than his option to play for the Lakers. By becoming a free agent, he can now negotiate a no-trade clause with the Lakers in addition to securing a longer-term contract. This remains the most likely scenario. James’ family and his non-basketball business are based in Los Angeles.
The Lakers also just hired James’ podcast co-host JJ Redick to a four-year contract as their new head coach.