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LeBron's $104M deal—Is he the most financially savvy player in NBA history?

Anyone could have believed LeBron James‘ pay cut is for the Lakers’ future, but not Kendrick Perkins. King James had earlier opted out of the franchise and was reportedly considering a contract less than the maximum for three years. While some reports suggested this to be for the Lakers’ betterment in the long run, Perk placed a bet on his varying opinion.

And it turns out the ESPN analyst’s prediction actually came true. At least that’s what Bron’s latest contract reflects. “Looks like I’m keeping my left Big Toe!!!” he wrote on X while re-sharing his earlier statement.

Appearing on ESPN’s first take, the ex-NBA star had stated he is willing to bet his left big toe that LeBron James is not taking a pay cut or considering taking a pay cut for the LA Lakers‘ future, but it’s for now. He said so because he believes LeBron wants to win a championship now. Yet another reason stated by Perkins was that Bron has to shoulder the responsibility of JJ Redick’s coaching career with the team.

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Although Redick may have denied it, multiple experts, including Perk, believe JJ’s signing with the Lakers had to do with Bron. In either case, it turns out the 20x All Star’s opting out move was mostly for the franchise to land Klay Thompson, who could’ve fueled their championship aspirations. But with KT landing with the Dallas Mavericks, James’ patience seemed to run out. And the 4x NBA champ’s new contract with Lakers makes Perkins believe he won his bet.

 

Having incurred $51.4 million per year through previous contract, James will now be signing a 2 year, $104 million max contract. This is also said to include both a player option in 2025-26 and a no-trade clause. With this, the 20x All Star will have full control over his future hereon. Enough hint that James’ willingness to take a pay cut to help the team in building a better roster expired. But how does this contract affect the team’s present situation?  

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LeBron's $104M deal—Is he the most financially savvy player in NBA history?

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LeBron James’ new contract limits Lakers’ ability to alter their roster

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Reports suggest Bron taking his full max salary of nearly $50 million would pose a challenge for the franchise. This will push the Lakers somewhat over the $188.9 million second apron mark. Significantly affecting how the franchise rounds out their roster around Anthony Davis and LeBron. 

Notably, teams who are above the first or second apron lose the chance to acquire players via sign-and-trade. Apart from this, the franchise also loses the access to the non-taxpayer mid-level exception. Meanwhile, teams above the second apron face all the restrictions of the first apron and more. Once above the second apron, a franchise can’t send cash in trades or aggregate salaries in trades. And can’t even receive players in return when they sign-and-trade their own free agents elsewhere.

Additionally, the teams above the second apron lose access to pre-existing trade exceptions. And they can’t trade first-round picks for seven years. Amid all of this, ESPN’s Adrian Wojnarowski reported that Bron’s agent Rich Paul is “planning to discuss with Lakers general manager Rob Pelinka the possibility of taking $1 million or so below the maximum,” to help keep the Lakers below second apron. But from willing to take a pay cut to putting Lakers in a complicated position, Kendrick Perkins actually seems to have won his left big toe-bet. 

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Stay tuned for more such updates. And to follow what Shaq’s ex-agent, Leonard Armato, has to say about the infamous Shaq-Kobe feud, Caitlin Clark’s Olympic snub, and more, watch this video.