LeBron James re-signs with the Cavs on a one-year deal that sets him up to make millions more long-term

As expected, LeBron James will re-sign with the Cleveland Cavaliers on a one-year maximum contract with a player option for a second year, according to ESPN’s Brian Windhorst.

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 $US70 million this year to $US89 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 $US30 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 $US110 million:

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.

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