LeBron James Signs the Largest Pay Cut in League History

Having parted ways with the Los Angeles Lakers, LeBron James has made one of the most striking financial decisions of his career by signing with the Philadelphia 76ers. Under the two-year deal, worth roughly $8 million in total, James will earn $3.9 million in 2026-27 and $4.1 million in 2027-28. Compared to the $52.6 million he earned with the Lakers last season, this represents the largest single-season salary reduction of his career.

According to the report, James, who has earned more than $581 million in salary alone across his 23-season NBA career, had played on a max or near-max contract for the previous 19 seasons. This deal with the 76ers officially drops him to the veteran minimum salary level, though a 15% trade kicker clause included in the contract could push his salary up to roughly $4.5 million should the club trade him this season. The new salary, which falls even below the $4.02 million he earned on his rookie deal with the Cleveland Cavaliers in 2003-04, marks the lowest annual earnings of his entire career.

James' decision is also notable given his off-court earnings; according to Forbes' list published this past May, James ranked as the world's fourth-highest-paid athlete over the past 12 months with total earnings of $137.8 million, of which $85 million came from off-field sources. Having become the first active player to reach billionaire status in 2022, James' net worth stands at roughly $1.4 billion according to Forbes, with the decision seen as reflecting a priority on maximising his championship chances in the twilight of his career.

Source: WSJ
Image: WSJ