LeBron James opts out of final year of Lakers contract, but expected to stay on new deal

James has not moved in free agency since 2018

By Sam Quinn Jun 29, 2024 at 5:44 pm ET• 3 min read

LeBron James has opted out of the final year of his contract with the Los Angeles Lakers, but the expectation is that he will sign a new deal with the team. So far this offseason, the Lakers have selected his son, Bronny James, with the No. 55 overall pick in the NBA Draft, and they have also hired his Mind the Game podcast co-host, JJ Redick, as their head coach. 

James is eligible for a three-year deal worth a projected $162 million to return to Los Angeles as a free agent. Because he has at least eight total years of NBA experience and has spent at least four years with the Lakers, he is also eligible for a no-trade clause in this deal.

James could have potentially signed an extension with the Lakers for a slightly higher price. The total amount on such an extension would have been roughly $164.3 million over three years. The reason such an extension would have paid James more is that his player option amount, which was based on an 8% raise built into his last contract, was higher than his max on the open market, which would have been a 5% raise on his previous salary. However, had James extended, he would not have been eligible for a no-trade clause, as those can only be added to new deals rather than existing ones.

While James has not taken less than the max since returning to the Cleveland Cavaliers for the 2014-15 season, Bleacher Report's Chris Haynes is reporting that he is considering paths for the Lakers to open the full mid-level exception to spend in free agency. The advantage of James opting out is that it allows him to tailor his salary to whatever other moves the Lakers make. He can see how much money the Lakers need to add talent elsewhere and then take however much is left if he approves of the moves.

Rich Paul, James' agent, confirmed to ESPN's Dave McMenamin that James has opted out and will work with the front office on his new deal if it means adding an impact player to the roster.