LeBron James can play the rest of his career on the equivalent of one-year contracts. It has exposed a loophole of sorts in the CBA while making him the most powerful man in the NBA.
Nobody saw this coming, but when James signed a two-year deal with Cleveland and had an opt-out included after Year One, the entire power structure of the NBA changed. If the Cavs don’t keep him happy, he’ll leave — that is the implication that goes along with having the best player in the game so uniquely empowered under the structure of his new deal.
Two years from now, when James becomes an unrestricted free agent again, he’ll be able to reap the financial rewards of signing after the NBA’s new television deals are cut. If the money paid by ESPN, Turner Sports and Fox Sports (yes, they NBA could have three TV partners instead of the current two, following the trail blazed by the NFL) is double what is being paid under the current deal, the salary cap will rise accordingly.
If, for argument’s sake, if the salary cap rises to $100 million, James would be eligible for a new contract with a maximum salary of 35 percent of the cap. With 7.5 percent annual raises, James would be eligible for a new five-year contract with salaries of $35 million in Year 1, then $37,626,000, $40,250,000, $42,875,000, $47,550,000.
That adds up to $201.5 million.
Or, he could keep doing two-year contracts with one-year opt outs. That would imperil his ability to lock up a nine-figure deal, but it would keep his empowerment structure in place.
You thought the Decision II brought some finality to James’ moving van options? Wrong. We haven’t even begun to scratch the surface of what James can do by being empowered with a player option after Year One of his next deal … and the deal that comes after that … and the one after that. With a player option. If he declines to exercise that option, he immediately would become an unrestricted free agent. It is a heavy hammer to hold, an enormous position of power that would give James the ability to influence each and every roster decision the Cavs make for the next four years. (Under CBA rules, if James signed a five-year deal he could not have a player option or an Early Termination Option until after the fourth year. A series of two-year contracts would keep him empowered the way he is now).
The Cavs’ evolving stance on the availability of Andrew Wiggins in a potential Kevin Love trade is just the beginning.
Clearly, James is trying to influence Cleveland’s decision making.
Imaginary conversation between LeBron and Dan Gilbert:
LBJ: “I want Kevin Love.”
DG: “We can’t get him, because the Timberwolves want Andrew Wiggins.”
LBJ: “Then give them Wiggins.”
DG: “But Wiggins is 19 and could become the best player in the league down the road.”
LBJ: “When exactly?”
DG: “It might only take four or five years.”
LBJ: “You don’t have four or five years. If you don’t make this trade, I’ll walk next summer. The Knicks and Lakers will both have enough cap space for a max contract. You want me to walk?”
DG: “No.”
LBJ: “Then make the damn trade.”
What might a Wiggins-for-Love trade look like?
Love makes $15.72 million in the upcoming season, and Wiggins will eventually sign for $5.5 million. So the salaries do not come close to matching, but the Cavs and Wolves could get a third team to broker the trade so that other players would not have to be included. Philadelphia is the most logical broker because the Sixers have only $28 million in committed salaries for next season, giving them a whopping $35 million in cap room.
The Cavs could conceivably offer Wiggins, Anthony Bennett and three No. 1 draft picks in 2015 (their own, Memphis’ No. 1 and Miami’s No. 1) for Love.
Flip Saunders would be able to turn to his owner and his fan base and say he got five No. 1 picks, including the top overall picks from 2013 and 2014. Dan Gilbert could turn to his fan base and explain that he made a deal that will allow the Cavs to immediately compete for a title with a starting five of James, Love, Kyrie Irving, Anderson Varejao and Dion Waiters.
LeBron would be placated — and a placated King is a happy King.
And one year from now, LeBron could again go to Gilbert and make whatever roster demands he wished.
Gilbert would have no choice but to comply, because Gilbert would not be the most powerful member of the Cleveland Cavaliers organization.
That title would belong to King James, who already is wielding his power.
Chris Sheridan is publisher and editor-in-chief of SheridanHoops.com.
Dl says
Solo 3 maxes are not 105% of cap. Kyri’es max is 90m over 5 years where lebrons was 122m I believe. It goes by years in the league. When Miamis big 3 started in 2010, they alll were around 14-15 range , and started around 13.7, took a bit less. Duncan just made 21m last season or 2012 I believe, then he went to 10. Parker Makes 13
Loves kyrie and lebron will cap Cle out, meaning they can only go over the cap to sign there own players or sign Veterans at 1.4 million . They would have 1 player the the Mid lEvel tax payer of 3.2m per year. Thats all they can add. So in 2-3 years, when Kyrie is 18m,, Love 20, and lebron 22, thats 60 right there. Cap is 63 now
How Funny that Dan Gilbert when he lost lebron was the strongest owner behind the new penalties during the lockout of 2011 for super teams, and now he got lebron back so if it doesnt change, he will be paying a tax bill I THE MILLIONS.
Richard says
Now Dan Gilbert knows what it’s going to be like signing with the Devil. With the greatness you get to kiss his ass and the asses of his entire entourage along with sucking their big Dicks
me says
Sailor: if it works for spurs.. doesn’t mean its gonna work for cavs.
Besides duncan is an aged good player at the end of his career.. while lebron is pretty much at his prime. How can you expect lebron not to have max contract?
jerrytwenty-five says
LeBron James himself is an exception, by being willing to agree to only a 2 year deal.
Melo is only 7 months older than LeBron, but would NEVER leave so much money on the table.
At least LeBron cares about winning championships and is willing to risk leaving money on the table.
Melo could have easily signed for 4 years and be confident that he is good enough to deserve another Big contract.
We shouldn’t pass some rule that a superstar can’t sign a 2 year contract.
What’s more Love is likely not willing to sign a max extension. He’ll just wait his opt out on June 30 2015 and therefore only guarantee 2 years too.
Blitz says
I don’t really think it’s a league problem to have one player in control of a team. It’s actually the particular team’s problem, if they allow that. It’s been there for a while in varying degrees. Superstars win games. Superstars wield power. If a player accounts for more than half of his team’s production every game, he obviously deserves 35% of the team’s salary. What I think is wrong and bad for the league is, superstars and the best players playing together, creating super teams. Hypothetically, the top 20 players in the league can somehow agree to play for only 4 big teams. What happens to the 26 remaining teams?
I hope there is a rule forbidding teams to have more than one max player each. The next highest paid player should only get 75% of max. If one superstar wants to play with James then they should be willing to receive 3/4 of the max.
A league with 20 superstars playing for 20 different teams is surely more fun to watch. How they go about that, I’m sure it can be figured out.
jerrytwenty-five says
Interesting proposal but players think they got the short end last time, so don’t know if they would agree to further restrictions.
A team shouldn’t be penalized if it elevates it’s own players for maximum contracts.
However, rule could be refined so that would limit chance of super teams, unless player willing to take a big cut.
Michele says
Cavs have already traded their 2015 first round pick so under the Stepien rule would have to keep one pick in 2015.
Eric says
They still have 2 first round picks.
A.J. says
You’re incorrect. Cleveland hasn’t traded its 2015 first-round pick. Chicago has the right to swap their 1st round pick for Cleveland’s first-round pick.
rbi99 says
they traded their 2016 first round pick to Boston in order to dump salary to pay LBJ. They cannot trade their own first round pick for 2015 now. Most talk calls for them to give up one first round pick. Before it is all said and done Minnesota will blink first and Wigs will not be part of the trade.
rod says
Cleveland will be a championship contender this year and Gilbert’s value just increased $500+. Give Lebron a scepter and let him lead the way!
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SoloSailor says
With one player “demanding” 35% of the payroll there is no balanced “team” that can be fielded. You only have to look at the success the Spurs had and that was only possible because you had “true” Stars who were not greater than the team, team up and accept much lower salaries that they could have demanded on the open market.
These “Max” salaries are ridiculous. When there are 15 players on the team, who on average represent 6.66% of the team salary and one player demands 35% … what does that tell you? That leave 14 player to split the remain 65% … on average 4.65%. So the average salary by the remaining “teammates” is cut by approximately 30%. All for one player? No worth it!
The Cavs will not have a team, they will have a dictatorship. The tail will be wagging the dog. I am losing respect for the King.
I wonder how long Blatt will last … not long I suspect. From all accounts “The King” tried to get Erik Spoelstra fired. Were it not for the strength of Pat Riley, Erik would have been fired.
Hemone22 says
I don’t know why you all blast the NBA guys for making the money they deserve. When Lebron left the cavs in 2010 they went from a 60 win team to winning 13 games! If one guy has that type of influence he doesn’t deserve 35% of the team salary? He probably deserves half!
What about the greedy football quarterbacks in the NFL? They get 20 Mil a year which is about 1/3 of the the cap (33%) and they have to divide the rest among 50 guys!
But I guess its easy to hate Lebron. Dirk was the highest paid player in the NBA two years ago and taking 30% of his teams cap but nobody says anything. This has been going on for years.
SoloSailor says
After Lebron left the Cavs, the team was basically dismantled, that is why the team “went south” … it wasn’t only because Lebron left. The Cavs now have a strong nucleus for talent which they will undoubtedly trade away to get Love.
Is Love worth four top draft picks?
With Lebron, Wade and Bosh making $20+mil, the Heat weren’t going continue winning and Lebron, Wade and Bosh knew that. A team needs to have 8-9 healthy guys to win championships.
A.J. says
Bullhockey. That’s a crock. The first season James was gone, Cleveland had a 10-game losing streak. Then they won a game. Then they lost the next 26.
This was their rotation in the 10th game of their first losing streak, the guys in the rotation that played more than 20 minutes: Mo Williams, Antawn Jamison, Anthony Parker, Daniel Gibson, Anderson Varejao and J.J. Hickson.
Earth to Sailor: It was the same roster that James had.
A.J. says
What are you talking about, Sailor. Duncan has had two max contracts during his career. Don’t make like he’s Mother Teresa. James never had a full max contract.
If Rich Paul and James tell Gilbert to go over the cap, then he’ll go over the cap, while David Griffin continues his sock puppet act pretending to be Cleveland’s GM. I don’t know why you think it’s a hard cap.
Oh, and Hemone, technically they went from 61 wins to 19, not 60 to 13. Not that it matters. It just served to prove how atrocious a job Danny Ferry really did, surrounding James with nothing but flotsam.
reality check says
AJ get your facts straight. All of James’ contracts except his MIA deal were max deals. He wasn’t the highest paid player, but that was because of his years in the league. wade , bosh and James all had max contracts before 2010
A.J. says
If you’re going to go by the moniker “reality check,” then you should at least be real. You’re wrong.
SoloSailor says
And how much did Duncan make this past season when they won the Championship? … certainly far less than max.
That’s what it takes to win a championship … spread out the salaries a bit.
3 max salaries on a team is 105% of the cap … do the math.
A.J. says
What is that, the new math? I thought we gave that up in the early 70s. It’s not even close to being 105% of the future cap. Aside from that, it’s a soft cap.
moneyTrees says
Duncan is no longer a max player. Thats why he isnt on a max contract.
Jon KIng says
Jordan had a firm hand in Phil Jackson, plus a strong culture in the GM and owner. Kobe had the same with the Lakers. Lebron had that with Riley and the Heat culture. Now Lebron with total power is not likely to end well. Even the greats need someone strong enough to say no to them.
A.J. says
Really? If James had any semblance of this kind of power in Miami, Mike Miller would have never been amnestied, they’d have added better players and had a higher payroll, and James would still be there.