The Los Angeles Lakers have officially announced that LeBron James has signed a two-year contract extension.
Multiple sources then revealed that James inked a deal worth $101.355 million, taking a pay cut of roughly $3 million. This ensures the Lakers’ salary cap remains just $45,000 below the second luxury tax tier, classifying them as a team under the first luxury tax line.
There are two significant advantages for teams under the first luxury tax line:
- They are eligible to use the taxpayer mid-level exception (worth $5.2 million).
- Teams can package multiple players in trades, allowing the Lakers to potentially make “zero-for-one” deals. Players like Russell, Hachimura, and Vincent could be on the trade block.
Journalist Jovan Buha mentioned on his show that the Lakers might clear roster spots, such as those occupied by Hayes and Wood, to create room for a $5.2 million taxpayer mid-level exception. Names he suggested include Gary Trent Jr. and former Laker Spencer Dinwiddie.
What moves do you anticipate the Lakers making next? Share your thoughts in the comments section.