LeBron James Signs 2-Year Deal With Cavs For $42.1 Million
The numbers are in. LeBron James is coming home to the Cleveland Cavaliers and he’s finalized a two-year contract for $42.1 million on Saturday (July 12) to boot.
Many are scratching their heads at the thought of James taking such a short-term agreement. But this was a calculated move to ensure that the superstar has a better future within the Cavs organization.
According to ESPN, James is expected re-sign with the team prior to the 2016-2017 season when a large television deal is expected maximize the NBA’s salary cap and thus his pockets. The structure of the Akron native’s contract allows him to become a free agent next year, but he’s reportedly committed to the Cavs for a longterm.
In the best case scenario, the TV contracts will cause the salary cap to reach a whopping $80 million in 2016. There’s also the impeding strife that will come with structuring a new collective bargaining agreement, starting in 2017.
James’ off-court earnings, which top $40 million according to estimates, allowed him to take a short-term risk as he eyes high earnings in the longterm.