LeBron James remains the biggest name left on the free-agency market, and while all signs point to a return to the Los Angeles Lakers to play with his son, Bronny, how that deal is structured remains a mystery. While the 39-year-old had reportedly said he was willing to take a pay cut that would’ve allowed the Lakers to open up the non-taxpayer midlevel exception (worth approximately $12.9 million) for key veteran free agents, that is no longer the case with Klay Thompson, James Harden and Jonas Valančiūnas having all inked deals with other teams.
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With no other big names set to join James in Los Angeles, the four-time NBA MVP is in line for a max contract that could potentially push the Lakers up against the dreaded second apron and the length of the deal will be limited due to the intricacies of the over-38 rule. The max a player with over 10 years of NBA experience can make next season is $49,350,000.
Los Angeles will have roughly $182.3 million in committed salary for the 2024-25 season if James does sign for approximately $49 million per season. James’ max deal would push the Lakers over the $178.132 million payroll of the first apron level while staying nearly $6 million under the $188.931 million second apron level.
The penalties for going over the second apron forbid teams from using the smaller taxpayer mid-level exception, aggregate contracts sent out to other teams to send cash out in trades, or using a 2032 first-round pick in a trade if the team finishes the season over the second apron. Lastly, if a second-apron team stays over that threshold for two of the four seasons after that, their first-round pick seven years out will automatically be moved to the end of the first round.
James would also prefer to have his contract signed before the U.S. men’s Olympic basketball minicamp begins on July 6 in Las Vegas, according to his agent, Rich Paul.
The over-38 rule applies to James’ upcoming contract as well. Los Angeles will be unable to offer the 20-time All-Star a contract longer than three years thanks to this unique wrinkle in the NBA’s salary cap. So, what exactly is the over-38 rule?
It’s a provision in the NBA’s collective bargaining agreement that limits teams from offering contracts lasting four or more years to any player who is at least 38 years old or will turn 38 during the contract. This collective bargaining agreement bylaw initially began as the over-35 rule in 1995, agreed upon by the NBA and NBA Players Association, eventually becoming the over-36 rule.
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In 2016, NBPA president Chris Paul successfully proposed to have the age limit pushed to 38 years old.
James has expressed he doesn’t have a ton of tread left on his theoretical tires, but signing his upcoming contract to remain with the Lakers with Bronny now being under contract in a multiyear deal allows James to at least play two seasons with his son. The first-ever father-son duo on an NBA team will begin in October with multiple years of runway if Los Angeles decides to keep the two together.
The 20-time All-NBA selection averaged 25.7 points, 8.3 assists and 7.3 rebounds on a career-high 41 percent from 3-point range through 71 regular-season games with the Lakers last season.
(Photo: Sean M. Haffey / Getty Images)
