The offer has probably already been presented.
But few observers expect reigning Most Valuable Player LeBron James to actually accept the Cavaliers' contract extension. James will thoroughly examine at all his options. If he declines the extension -- there's no hurry to accept it since he has until next June -- he could become an unrestricted free agent in the summer of 2010. Unless the bottom completely falls out of the market by then, he should be able to get the most bang for his buck by becoming a free agent and re-signing with the Cavs.
James has surrounded himself with some shrewd operators, including his partners at the marketing firm LRMR, agent Leon Rose and Nike executive Lynn Merritt.
He knows what his best options will be. But even the most ardent financial experts can only project how the economic downturn and sagging revenues will affect the NBA next season.
The NBA expects the salary cap to drop next July, which means there will be fewer dollars available for free agents. That will affect maximum contract offers to free agents like James. It's an uncertain future.
That could fuel speculation that James might decide to take the Cavs' extension this summer. Cap experts say he'll earn the most money by becoming a free agent and signing a max deal with the Cavs, who can offer one additional year and 10.5 percent yearly raises more than other teams. As a free agent, he could sign a six-year, $126 million contract with the Cavs. If he signed with another team, he'd qualify for eight percent raises in a five-year, $96 million deal. That could add up to an additional $30 million if he signed a long-term deal with the Cavs.
James didn't attend Allen & Co.'s annual media mogulfest in Sun Valley, Idaho, last week just to rub elbows with other millionaires. He was likely taking notes on how to maximize his name in the marketing and advertising world.
Some seem to think he'd be best served in a metropolis like New York. Others say his name is already so large, marketing opportunities will seek him out, even in a small market city like Cleveland.
The Cavs will undoubtedly offer the maximum amount possible, about $65 million for three years. He's scheduled to make about $15.8 million in 2009-10 and $17.1 million in 2010-11. Of course, he has an early termination option on the 2010-11 contract.
