LeBron James takes unprecedented $3 million pay cut to help Lakers

The Los Angeles Lakers are just under the 2nd Apron, avoiding penalties and luxury tax.

LeBron James takes unprecedented $3 million pay cut to help Lakers

LeBron James takes unprecedented $3 million pay cut to help Los Angeles Lakers

Before the start of this season’s free agency, LeBron James had given the Los Angeles Lakers a brilliant opportunity. That is, if they managed to get hold of any of his preferred superstars through signings or trades, he would take a pay cut. However, so far nothing has materialized in terms of adding players. However, he structured his new deal to help the team in the long run.

As the superstars LeBron James wanted started signing with other teams, it looked all but certain that the all-time leading scorer will sign a 2-year $104 million contract. However, NBA insider Shams Charania has revealed that the 39-year-old has instead signed on a 2-year $101.35 million contract and not a full $104 million deal.

That small $3 million pay cut may look insignificant to many, but it actually helps the Los Angeles Lakers in more ways than one, with the first and foremost advantage being that the franchise will sit below the dreaded 2nd Apron.

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That itself will save the Lakers approximately $60 million in luxury tax. More importantly, it will give them the financial leverage to seek out players via trade down the line.

Next year the Los Angeles Lakers will most likely break the 2nd Apron. But had they done it this year too, that would mean two straight years of breaking the 2nd Apron.

These violations would curtail their abilities to trade for players starting from the 2026-27 season. On top of that, their draft pick that season would be pushed to No. 30 as per the rules. All these reasons will curtail the Lakers attempts at NBA titles down the line.

LeBron James and Lakers to focus on player development

The NBA introduced the 2nd Apron to curtail the tendencies of big market teams from overspending in the race to win an NBA title. The byproduct of it is that teams will be forced to make decisions in advance so as to not curtail their player movements in latter seasons.

With this in mind, the Los Angeles Lakers have taken the decision to develop their existing players—a scenario that will not only help them this season, but for the upcoming seasons as well.

Excepting Anthony Davis and LeBron James, all of their other players are younger than 30. Younger players are easier to develop. That was the focus in their search for their new head coach, which ultimately brought JJ Redick to the building.

Their decision to not let go of crucial future draft picks will help them head into the post-LeBron James era. Therefore, rather than cripple the inevitable, why not work from now so that they can be NBA title contenders even after their leading superstar retires.

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