LeBron James: Retirement or Player Option with the Lakers?

Another early playoff exit for both the Lakers and LeBron James. The first-round elimination at the hands of Anthony Edwards’ Timberwolves – who considers LBJ the GOAT – raises several questions for James once again: will he retire or sign one last contract?

With the early start to the offseason, many scenarios are emerging that could shake up the summer for the entire Los Angeles Lakers Front Office.

LeBron James accepts the Player Option

The Lakers would be back to square one. James, with his $52.6 million salary for the 2025–26 season, would take up a significant portion of the salary cap (which has been raised by the NBA to $154 million). That would only be the first of LA’s problems. In addition to having over 30% of their cap space tied up in the 4-time NBA Champion’s salary, the Lakers are also without a first-round pick in the upcoming Draft.

LeBron James declines the Player Option

One possible scenario is a 1+1 deal worth $112 million. But the picture doesn’t change much: with Luka Doncic’s $46 million contract also on the books, the Lakers wouldn’t have the cap space to go after another top-tier player – unless they manage to trade away the $40 million trio of Hachimura, Vincent, and Kleber.

As seen during the first round, and especially in Game 5 against the T’Wolves, Los Angeles has clear priorities to address – first and foremost, finding a quality center. Myles Turner? Isaiah Stewart? Steven Adams? As always, the market moves according to LeBron.

LeBron James chooses to leave the Lakers

No franchise can offer more than the Lakers due to the over-38 rule, which prevents teams from offering 4+ year contracts to players who were over 38 when signing an extension.

But money won’t be the deciding factor for LeBron – or at least, that’s what we think…

LeBron James signs with the Warriors

Some connections make this scenario less far-fetched than it sounds. The dominance of Stephen Curry and LeBron James at the Paris Olympics was exemplary; James’ respect for Jimmy Butler and Draymond Green’s willingness to share the court with him make this option more plausible. The over-38 rule could actually facilitate the move.

LeBron James returns to the Cavaliers

LeBron has always said he wants to finish his career in LA, but he’s never ruled out a final dance in Cleveland. By accepting a smaller one-year deal and a reduced role, James could become the crucial addition to make another title run.