How LeBron James’ $104 Million Max Contract Shapes the Lakers’ Offseason Plans

It was reported that LeBron James might accept a pay reduction in free agency this summer if it helped the Los Angeles Lakers sign a difference maker, with Klay Thompson, James Harden, and Jonas Valanciunas being mentioned as possibilities. DeMar DeRozan was said to be on the list as well. However, the former three have all agreed to new contracts elsewhere, and while DeRozan remains unsigned, LeBron has already agreed to a two-year, $104 million max contract with a player option in year two.

LeBron James agrees to a 2-year extension with Lakers: AP source

Because of the rules governing sign-and-trades and aprons, the Lakers’ chances of acquiring DeRozan are reduced. The team getting a player in a sign-and-trade has a hard cap of $178,132,000 on the first apron, and with LeBron’s contract, Los Angeles is now expected to exceed the 188,931,000 on the second apron.

To acquire DeRozan in a sign-and-trade now, the Lakers would need to cut enough payroll to get back below the first apron once all of these transactions are finalized and the roster is established. That might still happen, but it appears unlikely at this point that this front management will try to trade out that much salary merely to obtain DeRozan, who is unwilling to accept a mid-level contract. There are also luxury tax difficulties for the Chicago Bulls in terms of how much salary they can recoup in a DeRozan sign-and-trade, so a third team would most likely be involved.

LeBron James reportedly agrees to two-year, $104 million contract with the  Los Angeles Lakers | CNN

Lakers’ possible options

A more likely possibility is that the Lakers will make a conventional trade (or trades) for an upgrade, ultimately dropping them below the second apron. Because of the new regulations for the second apron, a team cannot aggregate salaries to execute a trade, hence Los Angeles would be unable to do so as of now because the current anticipated roster salary has been reached.

However, none of these free agency deals are official yet, so there is some wriggle space here. The Lakers could conceivably make a trade collecting players, and LeBron James could accept a little lower contract to get them under the second apron. Adrian Wojnarowski of ESPN implied as much after the $104 million pact was disclosed. Or perhaps agreements are slightly modified elsewhere to help them pass.

According to recent reports, Los Angeles is in trade talks with the Portland Trail Blazers, Brooklyn Nets, and Utah Jazz. The Blazers’ conversations are likely concentrated on Jerami Grant (Robert Williams III is also on the market), whereas the Nets have Cam Johnson and Dorian Finney-Smith available. The Lakers were previously linked to Jazz player Collin Sexton. It appears unlikely that Lauri Markkanen would travel to Los Angeles, but Walker Kessler is another intriguing prospect.

Grant is projected to make $30 million next season, and Los Angeles would have to combine salaries to get him. The Blazers are also asking for a lot in return, so it’s uncertain whether there’s a match. The Nets are allegedly interested in bringing D’Angelo Russell back, and he’s a perfect trade chip in any prospective transactions after opting in to almost $19 million for 2024-25.

With JJ Redick’s coaching change and the arrivals of Dalton Knecht and Bronny James in the draft, it’s difficult to think the Lakers will essentially run the same squad. We’ll see whether Rob Pelinka and company have anything up their sleeves to help this roster in a crowded Western Conference.