LeBron James' Unusual 2-Year Contract With The Cavs Is About To Pay Off Big Time
When LeBron James signed his 2-year, $42.2 million contract with the Cleveland Cavaliers it was clear that James was banking on the new television deals for the NBA being huge which in turn would bring the salary cap way up along with his earning potential.
With the NBA nearing deals worth in excess of $2 billion with ESPN and Turner (TNT) it looks like that is exactly what is happening and once again James was once step ahead of everybody else.
With the increased television revenue, Dan Feldman of Pro Basketball Talk estimates that the new salary cap will rise to $16 million with that bump likely spread out over two seasons (2015-16 and 2016-17) to eliminate a massive 1-year spike. However, even if spread out over two years, the jump will still be huge.
What this means for LeBron is he will be able to cash in with a new max contract when his 2-year deal expires following the 2015-16 season or sooner if he chooses to opt-out after just one year.
As a 10-year veteran, James' salary is directly linked to the size of the salary cap as he is eligible to earn up to 35% of the team's cap space. Instead of an average salary of $22 million over the next four years, James can start earning an average salary of ~$24.9 million if he opts out after one year or ~$27.7 million if he waits until after the 2015-16 season.
So instead of signing a 4-year, $88 million deal now, James can potentially earn up to $153 million over the next six years, an extra $65 million over two years as long as he stays healthy.
- Mayhem Studios announces a new battle royale game with locations, gangs and other elements depicting India
- Technique used to track ants’ movement might soon help scientists in measuring snow depth from space
- Three senior Twitter employees quit amid ongoing Musk-Agrawal internet war
- Indian CEOs could get the best salary hike in 5 years; and they already make ₹7 crore/yr on an average
- Vedantu follows Unacademy’s footsteps — fires over 600 people in May
- Delhivery IPO
- Reliance Retail
- Indian Rupee
- Reliance JIO
- Best Deal on Smartphones
- Unacademy offline Classes
- Hubble Space
- 5G Phones Under Rs. 20000
- Disney+hotstar Subscribers
- Reliance Industries
- Venus Pipes Tubes IPO
- Matheesha Pathirana
- Adani Green
- Paradeep Phosphates balance sheet
- Spam Calls in India
- Whatsapp Reaction