While some players retire at the end of their contracts, James still has two years left on his Lakers deal and even if his comments were heat of the moment, it’s still worth looking into the process and potential ramifications.
According to ESPN NBA front office insider Bobby Marks,
it all depends on if a player decides to walk away from playing basketball or officially retires and gets placed on the voluntary retired list.
“When a player officially retires and is still under contract, he would be placed on the voluntary retired list only if the commissioner is notified by writing by both player and team for which he has played,” Marks explained. “I have not seen that happen since Jason Williams in 2008. … It is an extremely rare condition.
“In the unlikely case that James goes this route, he would forego the remaining two years left on his contract — $46.9 million and $50.6 million — and any money paid to James is included in team salary even if the player is no longer playing or has retired. … Here’s the kicker to all this — no player whose name appears on any team’s voluntary retired list shall, without the unanimous consent of the board of governors, be permitted to engage in any regular season game within a period of one year from the date that his name was placed on that list.”
So what if James decides not to go on the voluntary retired list?
The Lakers would still not get cap relief — unless the four-time champion went through a buyout or waiver process like Tim Duncan did when he retired in 2016 despite having a $5.6 million player option the following season.
“So James would still collect his salary in 2023/24, it would still count against the Lakers’ cap ledger unless the Lakers decide to suspend him for withholding services a la what happened in Philadelphia with Ben Simmons,” Marks added. “I do not see that happening either.