How much of a pay cut did LeBron James take to help the Lakers stay below second apron? Exact amount revealed

The LA Lakers have secured LeBron James, one of basketball's greatest players, for an additional two years. Shams Charania reported on Saturday that “The King” accepted a pay cut to provide the Lakers with flexibility both in the upcoming season and moving forward.

According to Charania, citing sources, LeBron James' new two-year contract totals $101.355 million. The amount is nearly $3 million less than his maximum potential earnings of $104 million.

LeBron James' contract adjustment will keep the Lakers below the second apron, a threshold crucial for maintaining flexibility in roster management.

Staying below the second apron grants the Lakers advantages in roster building, allowing them to construct a competitive team around James and Anthony Davis without facing severe financial restrictions.

Teams exceeding the second apron, set approximately $11 million above the first apron and $18 million over the luxury tax threshold, encounter stringent limitations in free agency and trades.

These restrictions include an inability to participate in sign-and-trade deals, restrictions on the amount of salary they can absorb in trades relative to outgoing salary, inability to utilize the non-taxpayer mid-level exception, limitations on aggregating salaries in trades and restrictions on sending cash in transactions.

Moreover, teams above the second apron are barred from receiving players via sign-and-trade when dealing with their own free agents, utilizing existing trade exceptions and trading away first-round draft picks beyond seven years into the future.

Looking at the Lakers’ offseason so far beyond re-signing LeBron James

This offseason, the Lakers have made only minimal adjustments to their roster, with the biggest one being re-signing LeBron James. They also drafted his son Bronny, extended Max Christie and added sharpshooter Dalton Knecht.

Despite these moves, they have struggled to secure a third star to complement James and Anthony Davis to help bolster their playoff chances.

They missed out on key free agents like Klay Thompson, DeMar DeRozan and Jonas Valanciunas, who could have addressed their needs for shooting and rebounding.

According to a recent report from Anthony Irwin, the Lakers are now exploring trade options to improve their roster after a quiet free agency period. Among their targets are Kyle Kuzma, who previously won a championship with the Lakers in 2020.

They have also shown interest in Jerami Grant from the Portland Trail Blazers and Cameron Johnson and Dorian Finney-Smith from the Brooklyn Nets.

“Sources say the Lakers have held trade talks with the Portland Trail Blazers about Jerami Grant, the Brooklyn Nets about Cameron Johnson and Dorian Finney-Smith, the Toronto Raptors about Bruce Brown and the Washington Wizards about Kyle Kuzma — as well as other teams and other trade targets,” Irwin said.

Without significant roster changes, the Lakers have made big adjustments to their coaching staff. JJ Redick has been appointed as the new head coach, with Nate McMillan and Scott Brooks joining as assistant coaches.