LeBron James and the Lakers have agreed to terms on a two-year, $104 million contract that would keep the league’s all-time leading scorer in Los Angeles for his 22nd NBA season.
The deal, which was first reported by The Athletic, will include a player option for the 2025-26 season and a no-trade clause.
James, who declined his $51.4 million player option for 2024-25 on Saturday to become an unrestricted free agent, could’ve signed a three-year deal for approximately $162 million but will return to the Lakers on what’s essentially a one-plus-one contract.
He’ll have the option to reassess his own future, as well as the Lakers’, next offseason ahead of what would be an unprecedented 23rd NBA season.
ESPN reported Wednesday morning that James’ agent, Klutch Sports CEO Rich Paul, and Lakers General Manager and Vice President of Basketball Operations Rob Pelinka planned on discussing the possibility of James taking a pay cut of at least $1 million to keep the Lakers under the $188.9 million second apron threshold.
Teams over the second apron are severely limited in their roster-building options, including but not limited to not being able to acquire a player in a sign-and-trade; not being able to aggregate contracts in a trade being sent out; and having their first-round pick eight years in the future (2032) frozen if they finish the season over the second apron.
The Lakers are projected to be about $1.2 million over the second apron threshold after James’ signing.
James was reportedly willing to take a significant pay cut so the Lakers have the financial flexibility to add a significant player with the full non-taxpayer midlevel exception, which will be $12.82 million.
But the Lakers haven’t made any additions, with their lone move outside of James being agreeing to terms on a four-year deal with Max Christie.
The free agency moratorium, a period in which teams may not sign most free agents or make trades, runs from Sunday afternoon through 9:01 a.m. Saturday.
James is expected to sign his new deal with the Lakers before Team USA’s training camp, in preparation for this summer’s Paris Olympics, starts this weekend in Las Vegas.
James, who turns 40 in December, continued to raise the bar in his 21st NBA season, averaging 25.7 points, 8.3 assists and 7.3 rebounds in 71 games with the Lakers in 2023-24, shooting 54% from the field and 41% on 3-pointers, his record 20th consecutive season averaging at least 25 points.
His 3-point accuracy was a career-high while his shooting percentage was his best in six seasons as a Laker.
James became the first player in league history to eclipse 40,000 career points on March 2 against the Denver Nuggets and extended his NBA-record double-digit scoring streak to 1,222 consecutive regular-season games.
In addition to first-round pick Dalton Knecht, the Lakers drafted James’ oldest son, Bronny James, in the second round of the NBA draft.
The Lakers will have 15 players on standard NBA contracts once the new deals are signed, the maximum a team can have once the regular season starts.
