On Thursday, the story broke that LeBron James intends to sign a one-year guaranteed contract (including a player option for a second year) with the Cleveland Cavaliers. ESPN’s Chris Broussard was the first to report:
Agent Rich Paul tells Cavs today LeBron will sign 2 yr deal with player option for 2nd year. $22.97 million 1st season, $24 mill 2nd year
— Chris Broussard (@Chris_Broussard) July 9, 2015
Just as he did this summer, it is widely assumed that James will opt out and negotiate a new deal again next year. Joe Vardon of Cleveland.com explains:
"“James’ latest agreement with the Cavs is no surprise; his intention was always to return and he wants contract flexibility so he can maximize his earning potential after the NBA’s nine-year, $24 billion TV deal explodes league revenues starting next summer. The salary cap for next season is $70 million, but could jump by $40 million over the next three seasons.”"
It is a strategy that will allow James to earn the largest possible amount of money he can from the Cavaliers. But here’s the thing — does that actually matter to him?
Last season, the Cavs paid LeBron $20.6 million. According to Forbes, he made another $44 million in endorsements, meaning James’ NBA salary was less than one-third of his annual income.
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A year from now, why would James really care about a getting few extra million from the Cavs? Even if the new salary cap allows him to make $5-6 million more per season, it’s still not even 10 percent of his total earnings.
I’m not going to say James should sign for significantly less and allow Cleveland to spend more money on getting him help (although that’s not a bad idea), but it is worth pointing out that there’s another benefit to his one-year deals.
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Even though the general consensus is that James has no intentions of leaving the Cavaliers, he’s allowing himself the opportunity to do so if things don’t go to his liking. Cleveland must live in fear of the possibility of James departing should he become displeased with his situation.
Anything James wants, the Cavs will do their best to give to him. In effect, he can become the head coach (which we’ve already seen happen) AND general manager, making both in-game and roster decisions of his own choosing.
Yes, the money will be slightly better for James with his contract the way it is, but was that really his deciding factor? Isn’t it possible the power and leverage he holds is of even greater importance to him? For a man who’s pocketed more than $500 million over the course of his career, it stands to reason that having control over his team is more valuable to than what is a relatively small dollar amount.
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