Signing Shorter Contract Has Backfired On LeBron James

Thursday, July 16, 2009
NBA Insider
Signing shorter contract has backfired on LeBron James
Vincent Goodwill / The Detroit News

When LeBron James agreed to a three-year contract extension with the Cleveland Cavaliers three summers ago, his mind was on 2010.

Most observers deemed it a shrewd move. It was supposedly symbolic of the business-conscious NBA player. They read the fine print of the collective bargaining agreement, which stated players with seven years' experience could sign for 30 percent of the cap, compared to 25 percent being the maximum for six years experience or less.

James signed first, then Miami's Dwyane Wade and Toronto's Chris Bosh followed.

Signing stars to shorter contracts allowed teams to build contenders around their cornerstone, while giving players like James and Wade the flexibility to test the free-agent market while still in their prime. Teams like the Knicks could position themselves to make a run at two top-tier free agents, vaulting to an instant contender.

The carefully constructed plan seemed to be working to perfection. Danny Ferry of the Cavaliers and Pat Riley of the Heat were always on high alert, with July 1, 2010 being around the corner. Then the economic levees broke and now James and Wade have backed themselves into a corner.

How did that happen? When the salary cap figures for next season were released last week, it did more than pique the curiosity for 2010's free agent class. Sure, the cap only went down by $1 million, to $57.7 million, but the league forecasts up to an $8 million drop in 2010-11.

Now what?

"Watch those guys start re-signing," a GM said in the last month.

That's why Riley and Wade have been posturing the past two weeks. By all accounts, they have a great relationship but Riley doesn't want to appear as if he's asleep at the wheel and Wade is trying to tilt public perception.

"There can't be any major franchise changes made without his commitment," Riley said.

A few million dollars might not mean much to James. There's the rumored kicker in his Nike contract, which could double if he plays in a major market like New York, Chicago or L.A., but his contract expires after next season, anyway. Besides, with James' image taking a hit in the past two months, bolting to New York would seem like a step back if he wanted to play for a contender.

Don't be shocked if James re-signs this summer or chooses not to opt out next summer. The latter could be dangerous as well, since no one knows what the new collective bargaining agreement will look like in 2011.

It also makes teams who chose not to wait until 2010 to spend look like geniuses. Sometimes the best laid plans go awry.