LeBron’s ever-changing contract
Posted July 9th, 2006 by bwindhorst
After thinking I could relax a little following LeBron James’ announcement about his intention to re-sign on Saturday, late Sunday night I was back in a tizzy. ESPN posted this story around 11:30 p.m., which prompted me to write this response only moments ahead of the last print deadline.
About an hour later, I saw Stephen A. Smith’s report on ESPN which was essentially the same but slightly different. In short, the story is that LeBron doesn’t want the full five years the Cavs are offering but just three more following this season (four more total).
As of this moment (1:45 a.m. Monday) here is what you need to know and I believe:
–LeBron and the Cavs haven’t agreed to anything yet. In fact they haven’t held final negotiations. The Cavs offered a max extension and LeBron said he would re-sign. After the announcement, LeBron’s agent Leon Rose told me he would not talk about the contract terms, which raised a little flag in the back of my head but it was a very little flag.
–Smith probably has an excellent source here. He is taking part in a seminar James’ representative are putting on today and tomorrow in Cleveland and therefore is probably closely working with James’ friends. I believe that this is probably Rose and James’ intention.
–An "opt out" is different from a player option. I wrote that you can’t "opt out" or "early terminate" a contract until after it’s fourth year. This is a very complex part of the collective bargaining agreement, but you can also have player options to extend deals. The initial ESPN story said James would "opt out," which led me to discredit that in print. On SportsCenter, Smith mentioned it would be a player option, which I believe would be feasible.
–The Cavs are going to give LeBron whatever he wants. If he wants a three-year extension with an option that would make him a free agent in four years, he’s going to get it.
–Just because James wants a shorter deal doesn’t mean he wants out of Cleveland. By becoming a free agent in 2010 after his seventh season, he would be able to sign a larger max deal because he could get 30 percent of the salary cap to start the deal. With less than six years experience, this max deal will only start at 25 percent of the cap.
–In four years the Cavs’ advantage will only be greater because the difference between signing with your own team and another team will for more dollars. Of course, in this case he would be unrestricted. Yet, teams would have to clear a huge amount of cap space to offer him a max deal.
–This was probably the plan all along. LeBron’s wait was perhaps just a ploy to make the Cavs realize he’s not hopping up and down eager to re-up it so they’ll be even more willing to bend from the full max years.
–I know it is the Northeast Ohio mentality to start panicking when hearing this. But LeBron has committed to stay, worry more about how the Cavs will build over the next four years.
–However, this deal does make LeBron look a greedy, thinking that $18 million in what would be the fifth year of a max extension isn’t enough. But, hey, I guess you get what you can get.
July 10th, 2006 at 2:40 am
I’m glad the contract is shorter.
One result of a shorter deal (intentional or not) will be added pressure on Cavaliers management. From what I can tell, Ferry seems pretty pleased with himself despite assembling a very limited roster and squandering the team’s cap space.
If things aren’t better in three or four years, LeBron and his posse can get some changes made before re-upping.
LeBron will make tons of money no matter what he does–he wants more control over his future and his chances to win, which is very understandable. A shorter contract gives him that.
July 10th, 2006 at 5:37 am
Brian led us astray somewhat.
When LeBron agreed to the extension, he (and several other media outlets) reported that it was a five-year deal in the range of $79M. Now, he says this:
“The Cavs offered a max extension and LeBron said he would re-sign. After the announcement, LeBron’s agent Leon Rose told me he would not talk about the contract terms, which raised a little flag in the back of my head but it was a very little flag.”
Might’ve been nice to tell his readers about the “very little flag”. If this posting’s to be believed, then Rose didn’t share the details of the contract at all, and the five-year, $79M stuff was drawn, perhaps, from assumption based on the previously reported offer. And saying that the negotiations haven’t even begun yet paints an entirely different picture of this aspect of the NBA than both Brian and the media at large care to detail right from the start. In other words, most NBA fans don’t really know how this all works, but they’re not idiots. It’d be nice if the media provided all the details in their reporting from the start.
“Smith probably has an excellent source here. He is taking part in a seminar James’ representative are putting on today and tomorrow in Cleveland and therefore is probably closely working with James’ friends. I believe that this is probably Rose and James’ intention.”
Here’s my question: after the AP and various other local and national media outlets (including ESPN itself) were allowed to run with the “LeBron signs five-year max extension” story uncontested by James’ camp and they issue a carefully worded public statement from LeBron, they decide to leak it to Stephen A. Smith a full 18 hours or so later? That makes no sense at all. First, they allow the media to run a story with false info, based on assumptions that LeBron accepted Ferry’s max offer. Then they leak it to a journalist/TV loudmouth/Knick homer who has had a wobbly reputation at best since he came to ESPN?
That begs a few questions:
1. Since we all know the Cavaliers will give LeBron anything he wants, per Brian, why not include the contract terms he’s agreeing to in the public statement on Saturday? Was he afraid it would tick off the fans who’d been waiting a week for him to agree? That also makes little sense because…
2. …if negotiations haven’t begun yet, per Brian, and you do not have an agreement in place, why allow Smith to report it?
3. Here’s something I posted in a forum last night about why I find this report dubious:
This is all crap, for one good reason that I haven’t seen discussed.
The current NBA collective bargaining agreement is positioned to expire at the end of the 2010-11 season - BUT, as the ESPN article conveniently omits, the league has the exclusive option to extend it for a season (2011-12).
If the ESPN report were true, the extension - which kicks in no matter what after this upcoming season - would take him to the end of the current CBA only if he played his fourth-year option with Cleveland. If he played the first three years plus the option, it would encompass the 2007-08, 2008-09 and 2009-10 seasons, with the option season being 2010-11, the final season of the CBA.
Now, signing this deal means LeBron and his agent are assuming two things. One, the NBA will not extend the CBA by one season after 2010-11’s campaign. Two, the fourth-year option MUST be used, for if not, they’ll be certain to be stuck under the terms of the current CBA and any max extension offer he’d receive would look very, very similar to the offer he just received.
My point here is threefold:
1. To assume that the CBA won’t be extended by the league for the 2011-12 season and to make a deal based on that assumption is foolhardy at best.
2. No agent doing his job would allow his client to sign a deal that not only costs him almost $20M in guaranteed money off of the original max offer, but does so promising the player the possibility - no, likelihood - that he will be able to cash in on a new max deal once the new CBA is ratified when, as I mentioned above, it’s not even certain if there will BE a new CBA by the time his contract+option is up (to say nothing of his opt-out after 3 years, which, for profitability purposes, would be rendered an empty threat at best).
3. Assuming that is, in fact, what LeBron and his agent have negotiated, it is a certainty that he would exercise his fourth-year option because, as I mentioned above, he NEEDS to use it to have any chance at a max deal under a new CBA.
So, counting the 2006-07 season under his rookie deal, the three years of the extension and the fourth year option he’ll have to exercise, LeBron will be a Cavalier for at least five more seasons. If you believe as I do (that this report is faulty), then he’ll also be a Cavalier for at least five seasons, for you would count the first four years of a five-year max extension on top of next season, provided that (as Windhorst reports) he has an opt-out after the fourth season of the deal.
Long story short, he’s in wine and gold for at least five more seasons, no matter what ESPN reports.”
NOTE: ESPN has now changed its article to read that the CBA expires in 2011-12. It’s nice to see them correct errors, but it doesn’t correct SAS’s report on TV and only punches holes in the biased gist of the written piece.
I’d like your thoughts on this.
July 10th, 2006 at 6:16 am
My thoughts on this are…you have a lot of time on your hands. I am sick of all of this. I am not worrying anymore. LBJ is here for longer than 2 years, and the Cavs will still have an advantage signing him whenever his contract runs out. At this point lets just wait until it is signed and the terms are announced. Based on the ESPN article, Wade and Melo might be doing the same thing. Let’s just wait and see what happens.
July 10th, 2006 at 6:41 am
If you’re sick of all this, why are you using your precious, obviously occupied time to comment? Can’t resist the urge to be condescneding?
I wrote most of that last night in a post on another forum. Doesn’t take much time to think, type and cut & paste.
July 10th, 2006 at 6:47 am
Geez Guys,
Even from out here in AZ it gets pretty simple.
If LeBron, Ferry and Gilbert don’t bring a championship in the next four years, he’s gone anyway and so are the fans.
If the do become a champion he will stay. It’s all about winning.
July 10th, 2006 at 10:08 am
If it’s about maximizing salary, it seems like it would profit LB a lot more to wait until the end of the CBA (after 2011-2012) and renegotiate at that instant, than wait until the end of his first 7 years in the league to renegotiate while the current CBA is still in effect. And if he *really* wanted money, he would have forced a trade to one of the media capitals to land even more endorsement money (I’m not talking about his current Nike contract or whatever). Waiting till 2011-2012 means he’s guaranteed more $ in this contract and will likely cash in more with his next contract. So, I don’t really follow this strategy as a long-term money-maker. Hopefully, we’ll get the real scoop from the Cavs, LB and his agent (and someone more trustworthy than Smith) later this week.
And like some others on this forum, I don’t think this is something to worry about, at least not yet. Committing to Cleveland for the next 4 (or 5 or 6) seasons is so much better than him not signing this contract. All fans of superstars have had to fret and worry and wonder about what’s going to happen next when it comes to unrestricted free agency (Kobe thinking of the clippers, Tim Duncan on the market, Jason Kidd testing the waters, and so on). By then, we’ll have enjoyed LB for at least 7 years. And if they keep improving, we may get lucky enough to land a championship. We’re just not used to these kinds of worries when it comes to a Cavalier. I agree with Cactus Jack - if they improve, win one, or are on the brink of it, he’ll stick around. If not, who can blame him for looking around? An NBA championship will bring him more endorsements than being a great player on a terrible team in New York.
July 10th, 2006 at 10:36 am
Confused, that last sentence is something that completely blows me away, simply because it’s such nonsense from so many fans…Allow me to print a mathematical formula: James on a team = The team is no longer terrible. Jeez, James’ rookie year the Cavs had a terrible team, but James, even as raw as he was, made it a .500 team. So it’s just silly to be mocking the prospect of joining the Knicks, or whoever.
Another thing that I don’t get is why people keep comparing Tim Duncan’s free agency, or Joe Blow’s free agency, or whoever’s free agency, to LeBron James’ free agency. Even crickets didn’t turn on the TV to watch Tim Duncan win his championships. Duncan is not an endorser of anything but boredom, and the TV ratings stunk. James’ situation is incomparable to anything currently out there. The NBA is all about individual star power, and David Stern has welded a trailer hitch onto LeBron’s ass.
The New York metropolitan area is where James’ money is and will continue to be. I don’t and won’t believe a thing James or his agent say, not until I actually see James in a Cleveland uniform in the 2012-2013 season. Which I doubt will ever happen, but who knows. Stranger things have happened. Besides, North Korea just might decide to nuke Japan before then, and then this entire debate will become moot.
July 10th, 2006 at 10:47 am
If he wants to go to New York, why doesn’t LB just ask for a trade now? Do you think he’s timing it for when the Nets move to Brooklyn? (lots of delays in that ‘plan’ so far).
Why not just take the max contract now, then demand a trade later (any time he wants)? With a ‘no-trade’ clause, or player approval for the trade, he could ask to be traded to select teams whenever he chooses, right?
I agree that LB makes any team better, but he can’t look into the future and tell if you if his 2011 roster with any other team is going to be any better than what he’s got now. I don’t get the sense that LB is going to move to NY in 2011 to be part of a rebuilding process. Wherever he plays, he will want to be on a championship contender.
July 10th, 2006 at 10:52 am
By the way, Lebron’s rookie team was 35-47. Perhaps he could now make such a a terrible team .500 in his first year with them (see: Kobe), but I don’t see LB making a terrible team a championship contender by himself. Do you? That’s a bit nonsensical, too.
July 10th, 2006 at 12:02 pm
More paranoid nonsense from Alan…what a shock. If all the money’s there, why is he signing an extension in Cleveland at all?
July 10th, 2006 at 12:19 pm
i just want to thank Scientific for a thoughtful, articulate, and informative breakdown in his first post. I agree w/all of your points, as they are all logical conclusions and raise interesting questions that I hope Brian will address in a forthcoming article.
Lastly, is there anything more idiotic/hypocritical than someone coming to a comments/message board section to accuse the aforementioned poster of “having too much time on [his] hands.” You are an idiot, KC. Re-read your post and ask yourself if you contributed anything worthwhile to this discussion (you didn’t).
July 10th, 2006 at 1:29 pm
Personally, I don’t think it is all about money. I think everything changed for Lebron when Dwyane Wade won a championship — he now sees himself as “behind” Wade. By singing an extension for less-than-the-max, he still has his commitment to his home area, but he also sends a clear signal to the Cavs’ front office: “Surround me with better players, or I’m gone.”
Just my initial thought.
July 10th, 2006 at 4:41 pm
Wow. Relax Scientific and nakhooda. All I said was they had a lot of time on their hands. I didn’t call him a loser, I didn’t tell him to get a job, I didn’t make a joke about a relative of his. I was merely commenting on the fact that he wrote more in one comment than Windhorst has written in his past 3 blogs. There is a difference between a comment and a judgement. I obviously can’t judge too much since I have posted on these sites as well. Wow, I guess me and Alan Tucker have to hang out now.
July 10th, 2006 at 5:45 pm
No, it’s squashed, KC. Easy.
July 10th, 2006 at 9:07 pm
Scientific, the answer to your question is patently obvious. If he doesn’t do an extension with Cleveland now, then he can’t become unrestricted and get a raise for another two years. So the alternative is to sign an extension, latch himself onto Cleveland for the shortest time he can, and then cut himself loose to New York or Brooklyn.
Seriously, I don’t know why so many people seem to require an abacus to figure it out.
And isn’t it kinda dumb to say James can simply force himself a trade? He has a contract. He doesn’t have a choice as to where he can play. Yes, he can be unhappy, but he can’t force a damn thing. Few front offices have the brand of spineless pansy that will bend over in the shower whenever Alonzo Mourning steps into it, and then say, “Thanks for the rod up the butt, here’s $10 million for the memories.”
July 10th, 2006 at 10:03 pm
But if he wants to leave, why not leave now (or at most, in 2 years from now)? According to your ‘logic’, there’s no reason for LB to choose to wait for 4 years to make the move. He’s not gaining that much $ by signing on for 3 extra years, compared to the boatload you think he’ll make in New York. And superstars do force trades - just ask Vince Carter and Shaq.
Do you want him to leave or are you just a pessimist?
July 11th, 2006 at 4:43 am
There’s a huge difference between being a pessimist and being a realist. Sure, “giving him flexibility” is a wonderful plausible excuse. Brian and other local sportswriters would have been great on Bill Clinton’s PR team.
And how do you figure he’s not gaining that much more from signing the extension? How much more will he make those first two years than without entering into an extension, about $7-9 million more a year? I don’t know the exact figure, and I don’t know much about LeBron’s personal spending habits, but I think I could get buy with that bump. I guess it will all depend upon Gloria’s revised beverage budget.
Look at what James and his agent do, not what they say. This whole thing has a very pungent aroma to it.
And let’s be serious, that Vince Carter thing was part of the prior moronic Raptor regime which screwed up that situation along with the Mourning fiasco. At this early juncture, and with a couple years left on his current deal, James couldn’t “force” anything. Although, you don’t need a crystal ball to read the writing on the wall for what’s coming down the pike.
By the way, why did it take a Philadelphia writer to first report that it will be a maximum of four years, and probably three, not five as erroneously (apparently) reported? Nothing against Brian and his local brethren, but come on. A Northeast Ohio writer won’t be the guy to break a story about an Allen Iverson trade.
July 11th, 2006 at 4:46 am
By the way, in case there are crazed English majors out there, “I could get buy” was intentional. Pretty cute, huh? Very punny.
July 11th, 2006 at 6:00 am
It’s being reported that Carmelo and Wade are considering the same type of shorter deal that LeBron wants.
Might not me anything, or it might mean everything. The truth probably lies somewhere in the middle. These guys want to make the most money possible, and apparently this shorter contract is the way to do it.
July 11th, 2006 at 6:40 am
It’s funny you say that Alan … Brian was the first to write that Iverson will be traded somewhere:
http://www.ohio.com/mld/beaconjournal/sports/basketball/14847210.htm
July 11th, 2006 at 6:48 am
Duh, you and I are going to die “sometime.” That’s not exactly a revelation, and some sports agent didn’t leak it to me. But reporting in advance the exact when, where and how the two of us are going to kick the bucket will be a scoop for the ages.
July 11th, 2006 at 6:52 am
alan, gotta say that your comments reflect some inconsistent thinking. you say that the NY area is where the money is for lebron. by that, you would have to mean endorsement money plus any extra “crossover” appeal he might gain from realms outside of basketball. you would have to mean that, b/c cleveland will *always* be able to give him more money, purely from the standpoint of his basketball contract. so, as another poster pointed out, why would he sign an extension at all? esp b/c as you point out, he cannot force a trade, and the only way to be able to truly choose his destination would be to let his rookie deal lapse and become an unrestricted FA. your answer — because of the extra money *in his contract*. so which is it — does he want to maximize his basketball contract or his other income? you can’t have it both ways.
the comment — “Look at what James and his agent do, not what they say” — ok, let’s do that. they are positioning him to re-up after his 7th year in the league, at which point he’ll be eligible for 30% of the cap as opposed to the 25% he is currently eligible for. i read this as positioning himself to make the most $$ possible on his nba contract. and, again, who can give him the most scratch in that department? the cavs, no one else. if it was purely about the bright lights and endorsements, they would have rejected the extension outright, and issued a press release with some mealy-mouthed mumbo-jumbo about keeping his options open, wanting to see the team improve, maximizing the chances of winning a title like his good buddy d-wade, etc.
i also gotta say, this is one of the more cynical statements i’ve read — “I don’t and won’t believe a thing James or his agent say, not until I actually see James in a Cleveland uniform in the 2012-2013 season.” let’s see, lebron says he wants to sign an extension. amid much hyperventilating and speculation, he signs it. but you still won’t believe anything he says for another 6 years. mmm-kay. someone must have hurt you real bad, poor guy … let’s talk about your trust issues. don’t be afraid to open up to the group.
but above everything else, everyone (myself included) should just relax and enjoy the fact that one of the great talents in all of sports will be playing in cleveland for the next several years and into his prime. there will be more time for hyperventilation this time in 4, 5, or 6 years.
July 11th, 2006 at 7:01 am
Duh, I just reread that link…Actually, all it was was a parrot call of other guys’ stuff. Which ironically, is typically what Stephen “A. Scoop” Smith does. But evidently, not this time.
One would assume the agent would respect some people in the local media, and not fudge the facts. Name a bigger local story than LeBron James. The leak should not have been Smith’s story.
July 11th, 2006 at 7:08 am
KR…I have “trust issues?” I am “cynical?” I have three recent words for you: “Agents,” “Boozer” and “Thome.” If that’s a trust issue and makes me a person that’s cynical, then I plead guilty as charged. Hang me like Gordon Gund hung Wayne Embry.
July 11th, 2006 at 7:25 am
Only two things are certain concerning LeBron’s prolonged silence and desire for a shorter contract.
First, LeBron has not given a ringing endorsement to Cavaliers management by leaving the team hanging for two weeks then demanding more options in the future.
Second, the Cavaliers’ chances of keeping LeBron in Cleveland beyond the next contract hinge most on whether the team is close to winning a championship at that time.
That said, the new contract will give Danny Ferry some much needed breathing room. Last year, the team was reeling after a wasted season and rocky ownership transition. The Cavs had to rebound quickly and thus signed just about whoever it could get to ensure a spot in the playoffs.
That resulted in a roster that is full of long, large contracts but bereft of a single player (other than LeBron) who can be called with any certainy a building block.
Maybe the rookies will help, but if Ferry could add one key building block this summer, I’d be happy and surprised.
July 11th, 2006 at 8:02 am
Lets just say for a moment that LeBron really deos want to be a Knick or a Net, something I am not necessarily convinced of. Lets look at how he gets there.
Demand trade: He and his agents are realistic enough to know this can’t happen. There is not a single player on the Knicks with any trade value, and the Nets guys who make enough post-extension to make it work (Kidd, Carter, etc) are getting old. The Cavs would never trade him off his rookie salary, it is nearly impossible to get back something of value.
Interestingly enough, on the 7th it was reported that the Nets are going to sign an extension of their CA Arena lease until, cough, cough, the end of the 2011-2012 season because their move to Brooklyn looks like it may have to be pushed back to there (local politics.) They will have an opt out at the end of 2010-2011 though, because that is the new realistic target date.
Take one year extension, become UFA: Well, thats great, but in that summer neither the Knicks or Nets will have the cap space to sign a max deal unless some other friendly team bails them out. Unlikely.
Sign non-max extension, become UFA: Here we may have the winner. Even Isiah Thomas can figure out a way to clear enough cap space by 2011 or 2012. That, and the Nets and Jay-Z will have the move out of Jersey in the rear view mirror and completed.
July 11th, 2006 at 8:43 am
alan, what do agents, boozer, and thome all have in common? they all went for the biggest contract. and guess what — that same motivation is what will keep lebron in wine and gold (blegh) for the forseeable future, due to the structure of the nba cba. unlike those situations, the deck is stacked in the cavs’ favor here.
July 11th, 2006 at 10:34 am
Awwwww….. Jim Thome broke Alan’s heart. That is so sad. And if Jim Thome and Carlos Boozer broke your heart then why couldn’t LeBron? That is some great logic.
July 11th, 2006 at 11:57 am
Speaking of NBA beat writers getting scooped, Rich Heldenfels reports on his ABJ television blog that Doug Christie is back in shape and would like to play for the Cavs.
Christie would fit in pretty well with the bricklayers the Cavs had playing guard last year.
But more importantly, what the heck is going on? First Steven A. and now Heldenfels? I thought Brian Windhorst (or “Windy,” to those in the know) was supposed to be the hardest working NBA beat reporter out there!
July 11th, 2006 at 12:08 pm
Larry D., are you the Larry D. who used to work at the Cleveland Free Times?
July 12th, 2006 at 2:43 am
No, I don’t know that Larry D.