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HOUSTON, TEXAS - MAY 01: LeBron James #23 of the Los Angeles Lakers looks on against the Houston Rockets during the first period in Game Six of the First Round of the NBA Western Conference Playoffs at Toyota Center on May 01, 2026 in Houston, Texas. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kenneth Richmond/Getty Images)

The Los Angeles Lakers have to make a decision on LeBron James. He is the biggest name in free agency this summer, even if he isn’t the best player. At his age, he is best used as the third-best player on a championship-winning team.

James has played for the last eight years in Los Angeles. If he is going to leave, he would likely have to take a pay cut in order to play for a true title-contending team. James has only taken a pay cut once, and that was when he went to Miami to play with two other All-NBA players.

Two insiders are skeptical that James will take a pay cut anywhere, even to play for the Lakers.

Insiders Skeptical Lakers’ LeBron James Will Take a Pay Cut

Both Dan Woike and Nick Friedell of The Athletic are skeptical that James will decide to take a pay cut this offseason.

“If he’s playing for another team, he’s either doing it via sign-and-trade or via the midlevel exception at $15 million. The MLE is a wild pay cut and would certainly make James the best player ever to sign for an exception like this. Would he do it? I’m a little skeptical,” Woike wrote.

“Where else would he realistically even go? We know about the Lakers. We’ve heard a little bit about a potential move back to Cleveland over the last year. And then there’s a team up in Northern California that seems to be waiting to see what happens,” Friedell responded.

Neither of them is convinced that James would actually be willing to take a massive pay cut to play somewhere else. He might not even want to take a big pay cut to stay with the Lakers, although they would be able to play him the most of any team.

Los Angeles Needs LeBron James to Take a Pay Cut

In order for the Lakers to have a shot at competing for a title, they need James to take a pay cut. They still have several improvements to make in the frontcourt. If they are getting a new center, they need money to spend. James taking a little less would help them do that.

If the Lakers want to bring back Rui Hachimura, they need some extra money for him, too. James taking a little less would help LA be able to get players who can take some pressure off of him. Austin Reaves taking less than the max would also help in that regard.

Re-signing Reaves is more important to the Lakers than retaining James. It would still make sense for the Lakers to bring James back, even if they have to pay him a bit more than they want to. No one else is available at his position who is better than him.