The Los Angeles Lakers superstar LeBron James was a free agent last off-season and has the option to be a free agent again in the summer of 2025 if he chooses to do so.

Last summer, James inked a two-year, $101.3 million contract with the Lakers that includes a player option for the 2025-26 season. He is set to earn $48.7 million this season and $52.6 million in the following one.

James has frequently opted for shorter contracts throughout his career since leaving the Miami Heat in 2014 to return to the Cleveland Cavaliers. While his initial contract with the Lakers was for four years, the last two have been for two years with an option for the second year.

Along with his agent Rich Paul of Klutch Sports, James has effectively leveraged the system to frequently hit free agency, thereby maximizing his earning potential and options.

James had taken time off from the team for personal reasons beginning December 11, but returned to lead Los Angeles to victory over Memphis, scoring 18 points, grabbing eight rebounds, delivering eight assists, and making two blocks and a steal in 34 minutes on December 15. He missed games on December 8 and December 13 due to soreness in his left foot, according to the team report. The Lakers are set to compete against Sacramento on Thursday.

Lakers head coach JJ Redick stated he plans to manage James’ playing time, allowing him to be more effective in shorter stints on the court with brief breaks on the bench. Additionally, James may sit out an occasional game.

Here’s a closer look at James’ contract situation:

What is LeBron James’ contract status?

James, who will be 40 on December 30, is in the first year of a two-year, $101.3 million contract with the Lakers. He has the option to become a free agent after this season or complete the second year and become a free agent following the 2025-26 season.

This contract, signed in July, includes a no-trade clause, along with a 15% trade kicker, which means he would receive a bonus of 15% from the Lakers if he were to be traded.

What is a no-trade clause?

A no-trade clause empowers the player to approve any trade, thus giving them more control over their career situation. Such clauses are rare; currently, only LeBron and Bradley Beal from Phoenix have this feature in their contracts.

How can a player obtain a no-trade clause?

As per the collective bargaining agreement between the NBA and the National Basketball Players Association, “A Player Contract entered into by a player who has eight (8) or more Years of Service in the NBA and who has rendered four (4) or more Years of Service for the Team entering into such Contract may contain a prohibition or limitation of such Team’s right to trade such Contract to another NBA Team.”

Could the Lakers trade James?

If you believe that no player or contract is truly untouchable, then yes, it’s feasible for the Lakers to trade James. However, it would require a perfect scenario.

There’s much speculation about the possibility of James joining Steve Kerr and Steph Curry at Golden State, especially after their successful collaboration at the 2024 Paris Olympics. However, such a trade would be complicated given James’ high salary.

Nonetheless, there’s no evidence suggesting James wishes to depart from the Lakers. During the 2024 All-Star Game in Indianapolis, when asked if he envisioned finishing his career with the Lakers, James responded:

“I am a Laker, and I have been extremely happy being a Laker for the past six years. I hope it continues that way. But I can’t predict how much longer I’ll be here or what uniform I’ll wear. Ideally, it will be with the Lakers, a fantastic organization with a rich legacy. We’ll see how it unfolds – I don’t know exactly how it will end, but it’s approaching.”

Since that statement, things in the Lakers’ world for James have improved. The franchise appointed JJ Redick, a friend of James’ from his podcast, as head coach and drafted his son, Bronny, with the No. 55 pick in the second round of the 2024 draft, marking the first time a father-son duo played together on the same team during the Lakers’ home opener.

James and his family also enjoy their life in Los Angeles.

What is the most games James has missed in a season?

Throughout his career, James has showcased remarkable reliability, reaffirming the idea that one of the most valuable traits is being available. Achieving over 40,000 points, 11,000 assists, and 11,000 rebounds, along with 20 All-NBA selections, is a testament to his durability.

The highest number of games James has missed in a season is 27, which occurred in the 2022-23, 2020-21, and 2018-19 seasons. He also missed 26 games during the 2021-22 season. Aside from those instances, he has never missed more than 20 games in any given season.

What about LeBron James’ retirement?

It’s not out of the question to consider that James might retire mid-season. Admittedly, his performance in the last several games before his short break wasn’t stellar. During a rough period of 2 wins and 7 losses prior to his absences against Portland and Minnesota, he averaged 22.2 points, 8.7 assists, and 7.8 rebounds, with a shooting percentage of 46.8% from the field and 27.8% from beyond the arc. In contrast, in the initial 14 games of the season, James posted averages of 23.5 points, 9.4 assists, and 8.1 rebounds, with a higher shooting percentage of 51.5% from the field and 41.6% on three-pointers. Although he may not be quite as dominant as before, he still shows he can perform well.

Choosing to retire now or in the near future would mean leaving a significant amount of money behind. Unless there are no other alternatives, it’s rare for athletes (or really anyone) to walk away from the opportunity to earn millions.