NBA Free Agency started with a bang on Sunday, with many major names making the rounds. With big and shocking trades like Klay Thompson and Chris Paul, LeBron James wasn’t that far behind. Earlier today, the King finally made his decision to stay with the Lakers franchise, realizing his dream to play alongside his son, Bronny. And like the King he is, he decided to go max with his contract. While earlier everyone thought he’d get $162 million from the front office, things turned out slightly differently.

James’ contract is rather short, spanning just two years (possible retirement hints too? Maybe.), $104 million maximum deal to return to the Los Angeles Lakers, as per ESPN sources. Why did he settle for the amount, you ask? Well, notably, the reason behind such a setback in pay for LeBron was due to a salary-cap quirk in the league, also known as the “Over-38 rule” as per the Athletic. And what exactly is the “Over 38 rule”?

It’s an NBA provision of their Collective Bargaining Agreement, limiting the teams from offering elaborate contracts of 4 or more years to players who are 38 years of age or older. This also applies to players who will turn 38 during the course of the contract. The provision initially came into the picture in 1995 as an “Over 35 years” rule, which later became an “Over 36 years” rule. Everyone’s beloved CP3 managed to change the age limit successfully in 2016 to 38 years.

Now, LeBron does fall under that purview. All thanks to his age, the Lakers wouldn’t be able to give him a contract that stretches more than 3 years in a row

How did the ‘Over-38’ rule affect LeBron’s deal with the Lakers?

LeBron had the choice to go for a three-year max extension for about $164.3 million if he would have opted in with his team. However, it would have restricted his team’s flexibility, though he was not aware of the unfavorable outcomes, obviously. Now, since he had become a free agent, an extension was out of sight, and his dream of a max deal as a free agent collapsed due to the ‘Over-38’ league role. Also, LeBron usually signs short-term deals with teams to maintain versatility.

Going with the present amount from the league sources, which is $104 million, LeBron James is expected to earn a minimum amount of $50 million yearly. As per the Athletic, if we calculate the total on-court earnings of King James with this amount, his fortune will reach about $583 million in 2025-26 just from league basketball. It will be the first time in NBA history that a player will surpass the $500 million mark in career earnings.

No doubt it is a marvelous feat for the Lakers superstar LeBron James. He will be turning 40 years old this December and will also get the chance to play with his son, Bronny. Now, James might go for just a championship run with the purple and gold jerseys before ending his stint with the league. Let’s hope that the 4x NBA Champion departs with flying colors when he leaves the league for good.

But before you go, be sure to check this video of Leonardo Armato’s take on the deadly duo Shaq and Kobe and their apparent beef in our exclusive interview with him.