LA Lakers salary cap situation after LeBron James re-signs on $104 million max contract
After LeBron James turned down his player option for another year on a $51.4 million deal, the Lakers were uncertain about their upcoming season. However, once Bronny James was selected by the Lakers as the 55th overall pick in the 2024 NBA draft, it seemed almost certain that LeBron would re-sign. Now, the franchise has officially confirmed the re-signing of LeBron James on a two-year, $104 million max contract.
However, that does not mean the financial challenges have concluded, as the moves leave the Lakers cash-strapped and in a position where they might not be able to improve the roster further.
The Lakers currently have a total salary of around $190 million. According to Keith Smith of Spotrac, with LeBron James' new deal and Bronny's standard rookie minimum contract, the Lakers will be $18.6 million over the tax, $11.3 million over the first apron, and $515,000 over the second apron. This could limit the Lakers' ability to make trades involving an increase in salary.
LA Lakers are not comfortable financially after move for LeBron James
The LA Lakers may need to let go some players before they can think of further improvements. They have 15 players on the roster, with an overall salary of $190 million. This leaves them well above the tax threshold ($171.3 million), the first apron ($178.1 million) and the second apron ($188.9 million).
The figure accounts for the bonus they need to pay D’Angelo Russell, who might still find himself on the move in the coming time. As far as financial restrictions are concerned, there are plenty that the Lakers will have to contend with.
The situation is comparatively easier when it comes to their draft assets, as they can trade a maximum of two first-round picks in a single trade but cannot combine them with the 2030 pick.
Further, they also have first-round swaps for 2026, 2028, 2029, 2030 and 2031, along with four second-round picks, and will need to be extremely creative to rake in assets.
One saving grace comes in the form of the second round exception and the Veteran Minimum Exception, which they can use without any restrictions.
Still, with such constraints governing the rest of the moves they make this offseason, the Lakers can be expected to remain extremely cautious when it comes to further moves.