How did LeBron James finally become the highest paid player in the NBA in 2016-2017? In renegotiating his contract with the Cavaliers, LeBron sought a well-deserved max contract. Max contracts fall into three categories. If a player has been in the league for:
In actuality, a different number is used to calculate MAX, thus CAP is based on 42.14% of Basketball Related Income as opposed to 44.74% of Basketball Related Income, which is the basis for the CAP in the 2011 CBA.
Thus, LeBron James, who was drafted in 2003, was eligible in the summer of 2016 for a 10+ year max contract. Because the salary cap jumped from $70,000,000 in 2015-2016 to $94,143,000 in 2016-2017, max contracts increased in value.
Furthermore, LeBron signed a contract for three years, theoretically at 35% of the CAP each year (with a player option after the second year). The player option means that if more money is available to LeBron before the 2018-2019 season than has been promised to him in his contract from Summer 2016, he may opt out of the current contract and try to renegotiate for more money.
To see how this works in numbers:
Finally, when LeBron James signs a three year, $100,000,000 contract, this is how it breaks down and this is exactly how he became the highest paid player in the NBA in the summer of 2016.
I'm Jake, a recent graduate of Duke University pursuing a career in collegiate or professional basketball operations.
Cap #s 2018 - 2019
Salary Cap: $101.869M
Lux. Tax: $123.733M
Tax Apron: $129.827M
Tax Floor: $91.682M
Room MLE: $4.45M