http://sports.espn.go.com/nba/news/story?id=2514918


LeBron may take less now, for much more later

ESPN.com news services

LeBron James showed himself to be a shrewd businessman as an 18-year-old when he signed gigantic endorsement contracts before even entering the league. The Cleveland Cavaliers star may have pulled off another smart deal.

Sources have told ESPN's Stephen A. Smith that James has agreed to a four-year extension worth approximately $60 million, and he can opt out of the deal after three seasons. It had been widely reported that James would sign a five-year, $80 million maximum contract Wednesday. He could have very good reason to settle for less now.

With the NBA's collective bargaining agreement set to expire at the end of the 2011-12 season, James could be positioning himself for an even bigger payday as a free agent when the cap goes up. Under a new agreement, James and other big stars could be in line for deals in the neighborhood of six years and up to $150 million.

Unlike others from his draft class, James waited one week to agree to the Cavs' contract offer. Cleveland, which saw Carlos Boozer bolt for Utah after verbally agreeing to a deal, started to worry. It could be that James' representatives and the Cavaliers were fine-tuning this aspect of his deal.

No contract can be signed until Wednesday, after the league sets the salary cap for teams. That will establish the exact figure for a "max contract," a number that only the Cavaliers, as the team that drafted James, can offer him.

James is heading into the final year of his rookie contract and will earn $5.8 million this season. He would have been eligible for restricted free agency in 2007, but James has said all along that he wanted to return to Cleveland, which is close to his hometown of Akron.

"I am very excited and happy to be re-signing with the Cavaliers. Staying in Cleveland ... provides me with the unique opportunity to continue to play in front of my family, friends and fans," James said in a statement released by his publicist this week. "I look forward to working toward bringing a championship to our great fans and the city of Cleveland."

That a superstar would ask to be paid less than that max would be a groundbreaking maneuver. Then again, James has made a habit of redefining the league. Last year, he became the youngest player in NBA history to average at least 30 points per game over the course of a season. His averages of 31.4 points, 7.0 rebounds and 6.6 assists per game allowed him to join Oscar Robertson, Jerry West and Michael Jordan as the only players in NBA history to average at least 30 points, 7.0 rebounds and 6.0 assists in a single season.

Now, he could be in line for even more record-setting numbers, these ones on his paycheck. How this affects other superstars around the league remains to be seen. Miami's Dwyane Wade and Denver's Carmelo Anthony also agreed to max contracts this past week. According to Smith, James discussed the deal he was planning to sign with those players. LeBron could be leading the league again ... in business acumen.

The media are going hog wild about him taking fewer years so he can re-up under a new CBA. "What a brilliant business move!"

That's all well and good, but I haven't heard one report that lays out what my first thoughts were. He can opt out after three years. So in effect, he has put the Cavaliers on probation. "Build a winner for me in three years, or I'm gonna bolt to greener pastures."

At least, that is the way that I see it.

He can make more money, and not get stuck on a shit team.

Seems like genious to me.

I agree it's win-win for him, but they aren't even mentioning that he can leave the Cavs in three years, which is a real possibility, IMO.

Since their deals aren't signed yet, I wonder if Melo, Wade, etc. will try to re-work their deals in a similar fashion too?

local spin

http://www.ohio.com/mld/ohio/sports/basketball/nba/cleveland_cavaliers/15004361.htm


LeBron contract in flux
ESPN report says deal only for four years

By Brian Windhorst
Beacon Journal sportswriter

The LeBron James contract story won't go to bed.

Late Sunday night, ESPN reported James will not be accepting the full five-year maximum contract extension worth $80 million as widely assumed after he announced he'd re-sign with the Cavaliers on Saturday.

Instead, the network reported, he'll sign a four-year deal worth close to $60 million and have an opt-out clause after the third year of the extension, giving him a chance to be an unrestricted free agent in 2010. The extension begins in 2007.

The report appears both premature and flawed. NBA officials confirmed the Cavs and James have not even discussed final terms of the deal yet. Those talks are scheduled to begin today or Tuesday.

According to the new collective bargaining agreement reached last year, contracts of fewer than five years cannot have opt-out clauses, referred to as ``early termination options.''

ESPN also reported that James' strategy would be tied to a new collective bargaining agreement in 2011. But the current agreement actually runs through 2012.

James' contract might indeed have an opt-out clause after the fourth year, meaning he could be a free agent in 2011.

James' agent, Leon Rose, declined to discuss the contract terms until after the NBA's moratorium period ends on Wednesday.

The most advantageous thing for LeBron is to have as many players' option years as he can get into a contract. The same goes for all the max-contract babies out there.

The Cavs right now have Big Z, Marshall, Snow and Donkey Jones on the payroll.

Those 4 make up half their rotation and all will likely be gone in 3-4 years.

Is it any wonder why Lebron wants a 4-year contract?

He doesn't want to spend the prime years of his career playing for a Lotto team (Hello Paul Pierce and numerous other "superstars")

It's one reason Tracy McGrady stated when he left Toronto. If anyone can recall he was up for a new deal before Vince Carter and McGrady thought not only would Vince leave, but the veterans they had would no longer be around and the team would suffer without them.

BOOM! he took the Magic carpet ride and bolted.

It didn't really work out for McGrady, but there is no doubt Lebron could force his way to LA or Chicago or NY down the road.

BTW, this shorter deal guarantees the Cavs have to continue to bow down before him, at least for the next 4 years. He's got that entire franchise by the balls.

conveniently, the league will be able to creat any crazy rule it wants to get lebron to ny with that new cba.

plus lebron possibly creates his avenue for getting out of CLE by the age of 25 while also saving face in cleveland.

what happened to lebron being managed by his 'peeps' who were supposed to be young and stupid.

looks to me like lebron has the best management team in the league.

Right now a free agent can sign for more money (higher raises) and an extra season. What if that is eliminated in the next CBA?

That would make this whole thing very interesting.

LeBron can get more money in the long haul, he is smart.

Plus this would move his 4th contract's start to age 29 or 30, rather than 32 or 33.

Which do you think benifit's him more?

4th right?(Rookie, extension, FA, then FA again, so yeah)

Actually, that's a great point detroitsportscity.

Of course, this all assumes he doesn't hurt himself.

I'm sure he could live on "only" $60 million vs. $80 million if he has a career ending injury next year or somesuch, but he'd still be out $20 million.

Marc Stein is reporting that Melo is trying to re-work his deal now.

Until it's actually signed I would imagine Melo could get away with that.

Mxy is right, though. If a Grant Hill type of injury happened he left a lot of money on the table.

They both have the shoe deals already, and that really makes the injury risk less important for them.

70 <<< 90 (rookie deals added)
170 < 190 (shoe deals added)

So, while they do have risk involved, it isn't a very big one, and the reward could be HUGE.

Somebody finally says it.


http://www.cleveland.com/sports/plaindealer/index.ssf?/base/sports/115260704972000.xml&coll=2


What the heck is the deal with LeBron?
James reportedly will sign shorter Cavs contract

Tuesday, July 11, 2006
Branson Wright
Plain Dealer Reporter

Just when Cavaliers fans started to breathe easy, they have something new to fret about.

Last Saturday, James released a statement saying he intended to sign an extension with the Cavs, and it was assumed he intended to sign for the maximum amount of five years and about $80 million. Monday morning, ESPN.com reported that James would instead sign a four-year deal for about $60 million, but the fourth year would be at the player's option. If James declines the option for a fourth year, he would become an unrestricted free agent.

So instead of looking for ward to six more years with James, who will make $5.8 million next season in the final year of his rookie contract, fans are wondering how long their superstar will stick around. Here's an attempt to clear up some of the confusion.

Q: Why would LeBron James want to sign for less than five years?

A: There are a couple of reasons. Three years could be the deadline James will put on the Cavs in their quest to win a championship, and it would allow him to assess the team's direction.

There's speculation that James, who is headed for his fourth NBA season, is gambling that a shorter deal could mean a larger paycheck later, but that depends on how the salary cap grows. For example, whatever contract James signs with the Cavaliers will begin in 2007-2008.

In that season, he will receive 25 percent of the team's salary cap and 8 percent annual raises after that. A five-year extension would take him through the 2011-2012 season.

Playing just three years under an extension would give James seven years in the NBA and allow him to become an unrestricted free agent and sign a contract beginning at 30 percent of the salary cap. He then would receive 10.5 percent annual raises for a maximum of six years with the Cavaliers, or five years with another NBA team. The upcoming season's salary cap has not been announced; last season, it was $49.5 million.

Under a doom-and-gloom scenario feared by oft-burned Cleveland fans, James could bolt the Cavs for the Nets, where his good friend Jay-Z owns a small percentage - less than 5 percent - of the team. The Nets plan to move to Brooklyn when a new arena is completed, and it has been rumored that Jay-Z would like James to play with the Nets.

Q: The league's collective bargaining agreement with the players union will expire after the 2011-12 season. Will this play a role in James' decision?

A: Most likely, since the length of contracts and salaries have been reduced in the past two collective bargaining agreement, and James could sign his next contract after the 2010-11 season.

Q: Could James lose money if he opts out after three years?

A: Yes. For example, if James signs for four years and does not pick up the option for the fourth year, that would give him seven years in the league and make him eligible to receive 30 percent of the salary cap with his next contract with 10.5 percent increases in each season. If he signed a five-year extension with the Cavs, he would receive 25 percent of the salary cap the first year and 8 percent increases the following seasons. He would make more money during the last two years of a five-year extension with the Cavs compared to the first two years of a second contract.

Q: Has any other NBA superstar done this before?

A: Yes. Tim Duncan signed a three-year deal with an option for the fourth with the Spurs in 2000, and he eventually signed a long-term deal with the San Antonio. Duncan was concerned with the direction of the Spurs, and he had hopes the organization would sign free agent Jason Kidd. The Spurs did not sign Kidd, but shortly after Duncan signed, guard Tony Parker came into his own and led the Spurs to titles in 2003 and 2005.

Q: Why would James want to stay?

A: First of all, the Cavaliers will be able to pay him more because they can sign him to a contract that is one year longer than any other team can offer. The difference in money could be significant.

Also, James has routinely said he wants to bring a championship to Cleveland. If the Cavs win a title prior to this third year, he may want the opportunity to win more and sign a longer deal after the fourth year of his contract.

Q: Would a shorter contract give the Cavaliers any additional flexibility to improve the roster?

A: No, since the salary cap is only applied to the current season.

Q: What do the Cavaliers have to do to keep LeBron happy?

A: Win and continue to add the personnel on and off the court to help make that happen.

Q: What's the best guess on how this might play out?

A: For now, this is all rumor until James and his agent Leon Rose sit down with the Cavaliers and actually sign the contract on or after Wednesday. If James signs for less than five years, it gives the Cavs four years to prove they can build a championship team.

Um, basically they have to replace Big Z, Marshall, Snow and Donkey PLUS get a more productive bench within 3 years?

LMMFAO

I wish Ferry Good luck

Wade's playing the game too...

http://sports.espn.go.com/nba/news/story?id=2516735


Wade expected to sign shorter contract with Heat

ESPN.com news services

Dwyane Wade could be following LeBron James' lead.

Wade, who reportedly agreed to a five-year, $80 million max extension with the Miami Heat last week, is instead expected to sign a three-year deal with a player option for a fourth season, ESPN The Magazine's Ric Bucher reported Tuesday.

Earlier this week, sources told ESPN's Stephen A. Smith that James had agreed to a three-year extension worth approximately $60 million, with a player option for a fourth season (rather than what was reported earlier as James being able to opt out of a four-year deal).

On Monday, ESPN.com's Marc Stein reported that Carmelo Anthony was also considering signing a contract extension with the Denver Nuggets similar to James' arrangement with Cleveland. But Anthony, after weighing his options, is expected Wednesday to follow his stated preference by signing a maximum five-year extension worth an estimated $80 million, with an option to be an unrestricted free agent after the fourth season.

The exact values of the contract extensions for James, Wade, Anthony and Toronto's Chris Bosh -- who is also expected to agree to an extension this month -- won't be known until July 2007, when the salary cap is established for the 2007-08 season.

Wade is under contract for next season with the Heat, who will try to defend their first NBA championship. Wade has repeatedly said he wants to stay in Miami. Other than coach Pat Riley saying that getting Wade to agree to an extension is Miami's top offseason priority, the team has not commented on the negotiation process.

Wade was the fifth pick in the 2003 draft, and his rise to stardom was quick. He averaged a career-best 27.2 points during the regular season, making 49.5 percent of his shots, plus averaging 6.7 assists and 5.7 rebounds.

In the playoffs, he was even better, averaging 28.4 points -- and 34.7 in the NBA Finals, when he led the Heat past the Dallas Mavericks in six games.

So now Wade wants to be like Lebron.

I thought he wanted to be like Mike?

As much as I hate to say this:

I love Lebron. Fuck Wade, fuck Melo, Fuck Bosh.

Lebron is the shit! Got other fuckers re-thinking about a MAX contract?

LMMFAO

So now Wade wants to be like Lebron.

I thought he wanted to be like Mike?

As much as I hate to say this:

I love Lebron. Fuck Wade, fuck Melo, Fuck Bosh.

Lebron is the shit! Got other fuckers re-thinking about a MAX contract?

LMMFAO

I love Bron and Bosh. The other 2 can go fuck themselves.

But his agent >>>>>>>>>>>>>>>>>> The other guys agents.

Seriously, this wasn't that complicated of an idea, and he is a revolutionary. More proof that agents are better at attracting the players then actually doing their jobs.

Actually, I love Bosh too.

I'm a closet Raptor fan (well, almost)

But yeah, fuck the other 2.

And DSC: I didn't know you had 250 posts! Congrats. I do think you really need to post more, though.

BTW, has anyone been to the Cavalier's home page lately? Its rather farcical. It looks ghetto and sad at the same time. http://www.nba.com/cavaliers/

^shit, that's terrible

What font is that, "comic"?

Looks like one of WOD's old site parodies.

Those things were great. WOD, if you see this, you should post a few of those from your archives.

LOL - I remember one of the Grant Hill ones.

Funny stuff.

And Fool, I have to ask:

WTF were you doing cruising the Cav site?

Making sure my comparison of Mark Blount as a "Big Z lite" was legit stat wise.

I'll bet this wasn't what the owners had in mind when they pushed the players' union for shorter contracts.

Well, long term does this really mean much?

Will Lebron actually pull in more money doing it this way, or is he banking on the next CBA to help him "catch up" the money he's leaving on the table?

Anybody here good with figures and shit?

Actually, I love Bosh too.

I'm a closet Raptor fan (well, almost)

But yeah, fuck the other 2.

And DSC: I didn't know you had 250 posts! Congrats. I do think you really need to post more, though.

Neither did I.

I probably should but *generally* I limit it to when I have a point/thought/something actually worth saying, which isn't always(such as this post).

Wade and Bron sign the shorter contracts, Melo stays with the Max.


http://sports.yahoo.com/nba/news;_ylt=AkRbaLtP0fl3ZsQMXPjqj9i8vLYF?slug=ap-cavaliers-james&prov=ap&type=lgns


http://sports.yahoo.com/nba/news;_ylt=AiFCmorA6odvnWOWq6ionvm8vLYF?slug=ap-heat-wade&prov=ap&type=lgns


http://sports.yahoo.com/nba/news;_ylt=AkNLM.BzTAiH_tBUPyYRvPe8vLYF?slug=ap-nuggets-anthony&prov=ap&type=lgns

Well, long term does this really mean much?

Will Lebron actually pull in more money doing it this way, or is he banking on the next CBA to help him "catch up" the money he's leaving on the table?

Anybody here good with figures and shit?

I would imagine the max salary/year of tenure was scaled to account for this sort of thing (read as: I'm not about to look it up and see if Bron will make a couple extra 20s by doing this). But it sure as hell gives him more leverage over personel decisions, even if the GM pretends Bron doesn't get say in who stays and who goes.



And DSC: I didn't know you had 250 posts! Congrats. I do think you really need to post more, though.

Neither did I.

I probably should but *generally* I limit it to when I have a point/thought/something actually worth saying, which isn't always(such as this post).

Man, if Glenn did that he'd have like 5 post outside of creating the "Hit It or Quit It" thread.

Well, long term does this really mean much?

Will Lebron actually pull in more money doing it this way, or is he banking on the next CBA to help him "catch up" the money he's leaving on the table?

Anybody here good with figures and shit?

I would imagine the max salary/year of tenure was scaled to account for this sort of thing (read as: I'm not about to look it up and see if Bron will make a couple extra 20s by doing this). But it sure as hell gives him more leverage over personel decisions, even if the GM pretends Bron doesn't get say in who stays and who goes.
.

With each new contract you can go up a significantly higher % then you can in raises within a contract.

That means, new CBA or not, LeBron can make significantly more money overall.

He'll be getting the same money to begin, then get significantly more for years 4 and on. 4-5 will be a new max contract, raising his value above the possible one off of his rookie contract, then 5-whatever will be able to be much higher based on having a bigger contract earlier.

Also, this limits his ability to get locked in a location, and times his 4th contract much better(29-30 vs. 32-33).

So pretty much he's getting (significantly) more money for an even better situation.

Edit: I'm wrong. Looked it up, and he can earn 'some' more $, but the max is a % of the cap, not a % of the previous contract(though you can go to 105% of the previous deal, even if it is over the 'max'). So, he could benifit by doing this money wise, but for it to be noticeable it would depend on the next CBA having changes. The timing of his 4th contract would be the biggest advantage.

Yeah, years in the league are the biggest modifier in max salary amount at the moment. I wasn't about to do the math between what he'd get paid under a max year/max salary contract now and 1 or 2 more to follow and what he'll make doing this three year thing and then signing max year/max salary contracts from there on out.

Bosh is now going with a shorter contract as well.

And Fool, check your PMs. And tread lightly.

Melo's taking the sure thing (max deal, max years), I wonder if that has anything to do with his uncanny ability to get into trouble 6-8 times a year?

Melo's taking the sure thing (max deal, max years), I wonder if that has anything to do with his uncanny ability to get into trouble 6-8 times a year?


That and if Lebron or Wade lost an arm they would still get a max deal. Melo teeters on that edge to begin with with his questionable D and playoff performances.