Understanding LeBron James' Next Contract

Understanding LeBron James' Next Contract

Now that LeBron James has officially opted out of his player option for 2016-17, the focus turns to his next contract. It's been widely assumed by most that James will again sign another 1 year contract, with an option for the 2017-18 season. From there, he'll decline the option, and set himself up, along with many other elite players, for a huge payday when the 2017 salary cap rises yet again.


If He Stays With Cleveland
Because LeBron has been back with Cleveland for 2 years, he's considered to have "Early-Bird" rights. This means he must sign a minimum 2 year contract with the Cavaliers, containing no options in order to receive the full 175% raise he's inline for. This would mean a 2 year, $63.91M contract.


The alternative would be to request his Bird-rights be renounced, which would mean James would be eligible to sign a 1+1 contract (1 year deal + a player option), but at a maximum 120% of his previous year's salary. This would mean a 1 year $27,564,600, with a $29,631,945 player option for the 2017-18 season.


If He Signs Elsewhere
Assuming the team has an ample amount of cap space to do so (Lakers), LeBron can sign a contract of any length, with the maximum $30.8M salary for the 2016-17 - even a 1+1 deal.

In other words, LeBron would gain an additional $3M this year by going elsewhere. 




Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.…
I'm gonna be sticky!