LeBron James re-signs with the Cavs on a one-year deal that sets him up to make millions more long-term
The deal is the same as the one he signed last summer, and allows him to make the most money possible in the long term. The salary cap is set to explode from $70 million this year to $89 million in 2016-17 because of the NBA's new TV deal. By signing a one-year deal that lets him re-enter free agency next year, LeBron can make himself an extra $30 million on a long-term max deal since max salaries are tied to the salary cap.
If he signs another one year deal next summer and waits until 2017 for the long-term max, he can make an extra $110 million:
Tony Manfred/Business Insider
It was previously reported that LeBron wouldn't talk to the Cavs until they re-signed Tristan Thompson to a long-term deal. Thompson is represented by Rich Paul, LeBron's agent.
Signing one-year deals also gives LeBron all sorts of leverage when it comes to team building. The Cavs have spent a ton of money so far to keep their 2014-15 deal together, and it could result in a historic NBA luxury tax bill. But since LeBron has the power to leave at any time, they can't afford to be cheap.