ESPN Insider Shares Simple Reason for Why LeBron James Picked Up Lakers' Contract Option

LeBron James will be a Los Angeles Laker next year after picking up the final year of his contract ahead of free agency on Sunday. It will pay him $52.6 million for the 2025-26 season, after which he will be a free agent barring another contract extension to stay in the purple and gold.

The decision also came with a warning for the team. After announcing James's intention to play in L.A. next season, his agent Rich Paul told ESPN the superstar expects to compete for a championship and implied the Lakers should be doing everything they can do make that a reality— instead of building for a future around Luka Doncic.

This has led to some questions from the NBA community asking why James picked up his contract option if he was really serious about competing next year. The Lakers need a lot to go right this offseason to be in the mix for a title in 2025-26 even with Doncic on the roster; the $50 million James just added to their salary cap books doesn't help. The star forward's chances of winning right now could've been increased significantly if he opted out of his Lakers deal and found a new home with a contender in free agency (or took a paycut to stay in L.A.).

Speaking on this matter on ESPN Monday, NBA insider Dave McMenamin shared one simple reason why James chose to pick up his option instead of venture out into the wilds of free agency: it's a lot of money.

"As I was told from a source close to LeBron James," McMenamin said, "when there's $50 million on the table you take it. That was part of the motivating factor."

"As I was told from a source close to Lebron James when there's $50M on the table you take it. That was part of the motivating factor. I think if this was the final outcome here was Lebron going elsewhere, this would have been put in motion far earlier than yesterday" - @mcten pic.twitter.com/EMLX7JRrOn
— Oh No He Didn't (@ohnohedidnt24) June 30, 2025

The reporter went on to detail additional reasons why James may have avoided free agency.

"Also, LeBron throughout his career has never unfulfilled a contract that he signed. This would stay in line with that. He's never been traded, he's never asked out of a contract before... I think if the final outcome here was LeBron going elsewhere, this would have been put in motion far earlier than yesterday."

Ultimately for all the noise we may hear it was always unlikely James would voluntarily leave the team that employs his son and the city where his family lives. As evidenced by his final decision, The King clearly would rather try to make it work in Los Angeles than head elsewhere to a championship-ready roster.

And, you know, $52.6 million is a lot of money. That too.