Despite the significant attention given to new Lakers hire JJ Redick at his introductory press conference on Monday, the more substantial news came from ESPN insider Dave McMenamin’s report: the Lakers are set to offer LeBron James a three-year max contract extension worth over $160 million.
LeBron has until June 29 to decide whether to opt into the final year of his current contract, which would pay him $51.4 million for the next season. However, it’s expected that he will forgo this option and become a free agent. The three-year max is due to the “over-38 rule,” which limits contract lengths for players over that age.
If LeBron opts out and signs this extension, the Lakers would be committed to paying him through his age-41 season. There is still uncertainty about whether LeBron will choose the security of a long-term deal or prefer one-year contracts to capitalize on annual salary cap increases.
The Lakers are prepared to accommodate whichever contract structure LeBron prefers, recognizing his ongoing value and the urgency of their current win-now strategy. The focus is on immediate success rather than long-term planning.
The Lakers also face competition for LeBron. Teams like the Philadelphia 76ers, Oklahoma City Thunder, and Orlando Magic have the cap space to pursue him, and there are sign-and-trade possibilities if LeBron threatens to leave. Despite being 39, LeBron still holds significant leverage.
The Lakers must secure LeBron to avoid a disastrous scenario where they lose both him and their recent high-profile hire, Redick. Retaining LeBron is crucial before they can pursue additional stars to join him and Anthony Davis.
