NBA's Collective Bargaining Agreement Poses Challenges for Potential LeBron James and Kyrie Irving Reunion

Recent reports indicate a desire for LeBron James and Kyrie Irving to reunite this summer. However, making such a reunion a reality presents significant obstacles.

According to Shams Charania of The Athletic, Irving reached out to James to gauge his interest in joining the Dallas Mavericks. Nevertheless, a source within the Los Angeles Lakers dismissed the idea as "unrealistic," as reported by Jovan Buha of The Athletic. Multiple sources also revealed that the Lakers have little interest in what Dallas could offer in a potential trade.

James is entering the first season of a two-year, $97.1 million extension that he signed with the Lakers last August, while Irving is set to become a free agent in July. It would be easier for Irving to join James in Los Angeles than the other way around, but even that possibility seems unlikely.

The NBA's collective bargaining agreement may be partly to blame for the challenges in facilitating this reunion.

As of now, the Lakers have only three players under guaranteed contracts for the 2023-24 season: James ($46.9 million), Anthony Davis ($40.6 million), and Max Christie ($1.7 million). They hold a $16.5 million team option on Malik Beasley, and Mo Bamba's $10.3 million salary remains fully non-guaranteed until June 29. Additionally, only $300,000 of Jarred Vanderbilt's $4.7 million salary is guaranteed until June 30.

Taking into account the salaries of James, Davis, Vanderbilt, and Christie, the Lakers already have $89.5 million committed against a projected $134 million salary cap for the next season. Even without considering other players, they lack sufficient cap space to sign Irving to his maximum salary of $46.9 million as a free agent. Irving would need to accept a considerably lower salary to join the Lakers outright.

A sign-and-trade scenario is more plausible for Irving to join the Lakers. However, the collective bargaining agreement complicates this option. Teams operating above the first salary-cap apron (projected to be around $169 million next season) are prohibited from acquiring players via sign-and-trade. If the Lakers were to acquire Irving through this method, they would need to keep their payroll below that threshold until June 2024.

Even if the Lakers convince Irving to accept less than his maximum salary in a sign-and-trade, let's say $35 million as an example, acquiring him would force difficult decisions regarding the rest of their roster. In that scenario, the Lakers would already have committed $124.5 million to James, Davis, Irving, and Christie, leaving them approximately $44.4 million to allocate for the remaining 11 players.

Consequently, retaining both Austin Reaves and Rui Hachimura, who are set to become restricted free agents this summer, could prove costly. Hachimura's path to free agency is relatively straightforward, as he is eligible to sign a four-year contract with any team or a five-year contract with the Lakers. The starting salary could be up to 25% of the salary cap ($33.5 million). In case Hachimura signs an offer sheet with another team, the Lakers have the option to match it.

Reaves, on the other hand, poses a more complicated situation as a restricted free agent. Due to having only two years of NBA experience, the Lakers possess his Early Bird rights, allowing them to offer a deal with a starting salary worth 175% of his current salary ($1.6 million) or 105% of the estimated average salary from the previous season, whichever is greater.

Based on the estimated average salary for the 2022-23 campaign, approximately $10.8 million, the Lakers could present Reaves with a four-year contract starting at $11.3 million, featuring 8% annual raises. However, this figure might not be sufficient to retain him in Los Angeles, especially after his impressive performance in the Western Conference Finals, averaging 16.9 points, 4.6 assists, and 4.4 rebounds per game.

Another option for the Lakers is to use their $12.2 million non-taxpayer mid-level exception to re-sign Reaves. However, this would limit them to 5% annual raises. This offer would amount to a maximum of four years and approximately $52.5 million, offering little improvement compared to what they could provide through Early Bird rights.

The CBA also restricts what other teams can offer Reaves. Under the Gilbert Arenas provision, regardless of whether he signs with the Lakers or another team, he is limited to no more than the non-taxpayer mid-level exception in the first year of his new contract. In the second year, he can receive a 5% raise on that amount. In the third year, he can earn up to his maximum salary ($36.85 million), with a 4.5% raise in the final year.

Consequently, other teams can offer Reaves a four-year, $100.4 million contract. However, the Lakers retain the ability to match any offer sheet he receives, and reports indicate that they plan to do so.

"League sources continue to say that L.A. is determined to retain Austin Reaves and Rui Hachimura in free agency," wrote longtime NBA insider Marc Stein in late May. "There is frankly no scenario, based on what I know, that Reaves won't be a Laker next season."

It wouldn't be surprising if both Reaves and Hachimura receive contract offers with an annual average value exceeding $15 million this offseason. Even if the Lakers were to waive Beasley and Bamba and let Russell walk, re-signing Reaves and Hachimura alone could push them perilously close to the first salary-cap apron.

In order to acquire Irving and re-sign Reaves, the Lakers could release Beasley and Bamba, as well as renounce their free-agent rights to Russell, Hachimura, Lonnie Walker IV, and Dennis Schroder. These actions would provide some flexibility under the apron. However, it would also make their roster significantly more top-heavy than it was during the final months of the 2022-23 season.

One may question whether this approach represents the best strategy for building around James and Davis, given their recent injury concerns. Additionally, Irving has missed at least 15 games in each of the past six seasons, many of which were not due to injuries. His off-court controversies, such as his refusal to get a Covid-19 vaccine and sharing an anti-Semitic film on social media, have also contributed to his reputation as a potential source of distraction.

ESPN's Brian Windhorst recently cautioned against dismissing the possibility of an Irving-LeBron reunion in Los Angeles, so it would be unwise to completely rule it out. However, the Lakers may be better off re-signing Reaves and Hachimura while considering the re-signing of Russell or exploring sign-and-trade options to strengthen their rotation.

The avoidance of a hard cap and greater flexibility to adjust before next year's trade deadline might outweigh the allure of a James-Davis-Irving triumvirate.

Unless otherwise noted, all statistics are sourced from NBA.com, PBPStats, Cleaning the Glass, or Basketball Reference. Salary information is obtained from Spotrac or RealGM, and odds are based on FanDuel Sportsbook.