LeBron James reportedly opts out of contract with Lakers, could take pay cut to re-sign

LeBron James has declined the $51.4 million player option in his contract with the Los Angeles Lakers and entered unrestricted free agency, according to multiple reports. James is expected to re-sign with the Lakers and, according to Yahoo Sports, it could come with a hometown discount.

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James is eligible to sign a three-year, $162 million max deal with the Lakers, but in order for Los Angeles to use its full mid-level exception — worth approximately $13 million under the new CBA — James would have to take at least a $20 million pay cut. If James doesn't take a pay cut, the Lakers will enter the offseason over the first apron of the salary cap, which would limit how much they can spend and send out in a potential trade.

James has only taken a pay cut once before: in 2010, when he, Dwyane Wade and Chris Bosh all took less money to team up on the Miami Heat. James signed a two-year, $68.6 million deal, which was $15 million less than the maximum a team could offer him in free agency.

This time around, James' incentive to take a pay cut would be to spend the twilight years of his career on a true contender. It's also worth noting that the Lakers drafted James' oldest son Bronny with the No. 55 pick in the 2024 NBA Draft on Thursday and hired James' friend and former podcast co-host JJ Redick to be their head coach.

NBA free agency starts on Sunday, June 29 at 6 p.m. ET.

[Stay up to date with the latest NBA free agency rumors on FOX Sports]