LeBron James player option, explained: How Lakers star’s contract impacts free agency, future in LA

Ahead of his record 23rd NBA season, Lakers superstar LeBron James has done something he has never done before.

Sunday, James exercised a $52.6 million player option to remain with Los Angeles for the 2025-26 season, per ESPN’s Shams Charania. This marks the first time in James’ career that he did not opt out to enter free agency. James, 40, is coming off an All-NBA Second Team campaign with the Lakers, though he suffered a Grade 2 sprained MCL as the team was eliminated from the first round of the playoffs.

The rarity of James’ decision should not be overlooked, as his opt-in may mean more about his commitment to Los Angeles for the upcoming season. A statement from his agent, Rich Paul, also suggests that James could look to finish his career elsewhere to pursue another NBA title.

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Here is a breakdown of James’ player option, his history of contract decisions, and what Paul’s statement could mean moving forward.

LeBron James player option, explained

In 2024, James signed a two-year, $101.4 million contract with a player option for the 2025-26 season. James exercised that player option on June 29, 2025, placing him under contract with the Lakers for $52.6 million and keeping him from entering free agency in 2025.

Had James declined his player option, he would have become a free agent.

In free agency, James could have re-negotiated a contract to remain in LA or elected to sign elsewhere, though no NBA team currently has the cap space to sign James to a comparable contract outright.

Historically, James has opted out with the intention of re-signing. The decision to opt in, coupled with the statement from Paul, leaves the door open for a potential trade involving James.

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LeBron James player option history

• 2010: James opts out of final year with Cavaliers, joins Heat on six-year contract with early termination option in 2014
• 2014: James opts out of Heat contract, signs two-year contract with Cavaliers with a second-year option for 2015-16
• 2015: James declines player option, re-signs on a two-year deal with a second-year option for 2016-17
• 2016: James declines player option, re-signs on a three-year deal with a third-year option for 2018-19
• 2018: James declines player option, signs four-year contract with Lakers with a fourth-year option for 2021-22
• 2020: James signs two-year contract extension to keep him with the Lakers through 2022-23
• 2022: James signs two-year contract extension with a player option for 2024-25 
• 2024: James declines player option, re-signs on a two-year deal with a second-year option for 2025-26
• 2025: James exercises $52.6 million player option for 2025-26, bypassing free agency

MORE: What’s next for Lakers after first-round exit in 2025?

Will the Lakers trade LeBron James?

No decision has been made on James’ future with the Lakers, but a statement from his agent suggests that all options are on the table.

Additionally, James’ decision to exercise his player option removes trade restrictions that often apply to players on newly signed contracts. It is worth noting, however, that James has a no-trade clause in his contract. That fact, and the Lakers’ change in ownership, add a few wrinkles to any potential deals involving James.

Here is what Paul told ESPN about James’ decision and the notion he is “monitoring Lakers’ moves” this offseason.

LeBron wants to compete for a championship. He knows the Lakers are building for the future. He understands that, but he values a realistic chance of winning it all. We are very appreciative of the partnership that we’ve had for eight years with Jeanie [Buss] and Rob [Pelinka] and consider the Lakers as a critical part of his career.

We understand the difficulty in winning now while preparing for the future. We do want to evaluate what’s best for LeBron at this stage in his life and career. He wants to make every season he has left count, and the Lakers understand that, are supportive and want what’s best for him.

Last season, the Lakers made a major move to acquire superstar Luka Doncic from the Mavericks. LA finished the season with a 50-32 record and the West’s third seed, but was eliminated in five games in the opening round.

In the competitive West, the Lakers are a few moves away from entering the tier of title contention. Whether those moves can be made with James under contract remains to be seen.

MORE: Ranking the Lakers’ most realistic free agency targets

LeBron James career earnings

Here are James’ career earnings through the 2024-2025 season. James’ $52.6 million salary in 2025-26 will push his career contract earnings over $580 million.