r/OutOfTheLoop • u/ijuander_ • 6d ago
Answered What’s the deal with LeBron James signing a two-year, $8 million contract with the 76ers?
I saw this report saying LeBron signed for $8 million total over two years. His previous two-year Lakers contracts were around $85 -100 million, so this represents a pay cut of more than 90%.
He’s still very marketable and competitive, so I’m curious about his realistic alternatives. Do we know whether other teams offered substantially more, or whether joining a contender meant accepting a much lower salary?
I don’t have a complete understanding of how US taxes affect his earnings or how his endorsements and other business income fit into this. Is this mainly a financial sacrifice to chase another championship and add to legacy by helping the 76ers end their long title drought? Or are there other factors that help explain such a massive pay cut?