After reported failed attempts to land multiple complementary players, LeBron James is set to re-sign with the Los Angeles Lakers on a two-year, $104 million max contract. James, who opted out of the final year of his previous contract, will reportedly receive a player option on the second year of his new deal, which will also include a rare no-trade clause, which only Phoenix Suns guard Bradley Beal had in the NBA before James.
No-trade clauses are exactly what they sound like: players with an NTC in their contracts can veto any trade that includes them. So in James' case, if he chooses to finish out this contract with the Lakers, he will do so unless the team releases him. And while no-trade clauses naturally give the player incredible leverage by allowing them to nix trades, it also entitles the player, if they and the team want to execute a trade involving them, the ability to pick which team and for what return they would get.
Now James, whose son Bronny James is also set to make his NBA debut with the Lakers after being drafted in the second round of the draft, will be able to officially control where he lands if he chooses over the next year or two that he does not want to stay with the Lakers. Since James can decide to opt out of the second year of his contract next offseason as well, he could choose to sign with the Lakers on a new two-year contract that also has a no-trade clause. He used a similar strategy upon his return to the Cleveland Cavaliers in 2014; James signed ‘1+1' deals in 2014 and 2015 with Cleveland while the team gained his early Bird rights.
While the Lakers have shown little to no reported interest in trading James, there was some chatter during the season that the Lakers and Golden State Warriors had a brief conversation about the possibility of a trade involving James. Talks did not get very far, however, as the Lakers and James reportedly had no interest.
How LeBron James earned a no-trade clause with Lakers
While the power the no-trade clause wields is one reason why they are so rare in the NBA — only 10 players in league history have possessed a true no-trade clause — another factor in their rarity is the set of requirements that must be met for a player to become eligible for the clause.
The first requirement is that the player in question must have played eight seasons or more in the NBA. LeBron James, the oldest active player in the league, has obviously met the criteria for that one. The second requirement is that the player seeking a no-trade clause must have played at least four seasons with their current team, even if they are non-consecutive. Having signed with the Lakers back in 2018, James has now played six seasons in purple and gold.
The final and most restrictive requirement is that the player is signing a new contract as a free agent. For example, if a player is under contract with his current team and signs a max extension before the final year of his current contract — as James did with the Lakers in both 2020 and 2022 — he and the team cannot add a no-trade clause to the extension. To receive a no-trade clause, the player must become a free agent, even if only for a moment, before signing a contract that includes the NTC.
Since most players choose to sign extensions before their current contract expires, the last clause is why so few players in the NBA typically have no-trade clauses. Before James' latest deal, Beal was the only player in the league to have one. Beal, who was drafted by the Washington Wizards in 2012, played 10 seasons with Washington before declining his player option in the 2022 offseason. That empowered him to re-sign with the Wizards for a highly criticized five-year, $251 million max extension, which featured a no-trade clause that ultimately helped land him with the Suns the following offseason.
When James eventually signed a three-year, $100 million contract with the Cavs in 2016, he negotiated a no-trade clause into the deal, which became a point of discussion during gJames' final season with Cleveland as the team struggled to surround him with talent. James told the media amid the turbulent 2017-18 season that he would not waive his NTC and allow the Cavaliers to trade him. A few months later, after the Cavaliers were swept in the NBA Finals by the Golden State Warriors, James signed a free-agent contract with the Lakers.
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