LeBron James & Contract Options: What you need to know -- Terry Pluto

CLEVELAND, Ohio -- Talking to myself about the contract situation of LeBron James as he ponders free agency:

QUESTION: Will James pick up his play option for $36.5 million by the June 29 deadline?

ANSWER: I talked to some NBA executives and checked the labor contract to put together this breakdown of the different options available to the Cavaliers star. There is almost a zero chance James will pick up that option.

Q: Didn't Chris Paul pick up his one-year player-option with the Clippers last summer?

A: He did. But the only reason was to set up a trade to Houston.

Q: Why wouldn't James do the same if he wants to play elsewhere?

A: I guess it's possible, but James has always wanted complete flexibility. If he wants to go somewhere, he'll just go as a free agent.

Q: What about the old-fashioned "sign-and-trade" deals?

A: They exists, but the parts that were helpful to players are mostly gone. It's is complicated, but I doubt James will be any part of a "sign-and-trade."

Q: What he if wants to stay one more year in Cleveland?

A: Then he'll do another 1-and-1 contract. In this deal, he'd sign for the maximum amount -- a projected $36 million in 2018-19. But he'd add a player option for the maximum in 2019-20 -- about $37 million.

Q: What's the point?

A: He has two years of protection, but can leave after a single season. Suppose James signed a 1-and-1 contract for next season -- and he suffered a career-ending injury in December. He still would be paid $73 million...the 1-and-1...as he'd pick up his player option even if he could not play.

Q: Wasn't James the first to do those 1-and-1 contracts?

A: I believe so. He is with Klutch Sports Agency, where Rich Paul is the agent. The contract negotiator is Mark Termini, a Cleveland native and veteran sports attorney. Other NBA people told me that Termini came up with that idea.

Q: Do you think there will be a trade involving James?

A: Not likely. Since coming to the Cavs, he's had a no-trade clause and he will continue to have a no-trade clause in any new deal. He is the best player in the NBA. He can dictate his terms.

Q: Why not sign a long-term maximum contract with the Cavs?

A: James is finishing a 2-and-1 contract. He played two years on a deal signed after the 2016 title. He has the option for this season. He has to at least consider the maximum because Cleveland can pay him more than anyone else.

Q: How does that work?

A: There is a home court advantage for free agents. The Cavs can offer James a maximum deal of about $205 million for five years. If he goes to another team, the most he can be paid is about $152 million for four years.

Q: Can't he wait another year, then sign a 5-year deal with the Cavs?

A: No. To secure that 5-year maximum, he has to sign this summer. A player who signs the long-term maximum contract must have it end by the time he's 38.

Q: Say what?

A: James is 33 years old. His 5-year deal with the Cavs would end by the time he's 38. If he waits until next summer to sign the big maximum contract -- it can only be four years. That's because he'll be 34 next summer and the contract must end when he's 38.

Q: So this is his last chance to sign a 5-year, maximum deal?

A: Exactly.

Q: Do you think he'll do it?

A: I doubt it. James has been savvy about keeping his options open since coming to the Cavs. But he has to discuss it.

Q: The longest he can sign with another team is for four years?

A: That's correct.

Q: So next summer, he could leave the Cavs and still sign a 4-year deal with a team such as the Lakers?

A: That's correct. He'll be 34 and the deal would end when he's 38. So it's legal.

Q: Why doesn't James sign for less money than the maximum?

A: James was never the highest paid player on his team until he came to the Cavs in 2014. He never received a full maximum salary until then. He sees no reason to take less.

Q: Are you going to say what James will do?

A: Other than declining his option on June 29? I have no clue.

Q: How about taking a guess?

A: In 2010, I spoke to a group of lawyers in Akron. They asked what James would do. I said I had doubts about him staying with the Cavs, "But the one thing I don't expect him to do is go to Miami with Dwayne Wade." I talked about Chicago or New York as destinations. I stopped guessing about James after that.

Q: So what's the point of this story?

A: For readers to understand his options -- especially this being his last chance to sign the full 5-year, maximum deal. That was something I didn't know until recently.

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