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What is a No Trade Clause in the NBA? LeBron James New Lakers Deal Explained
LeBron James signed a two-year contract with a player option for the 2025-26 NBA season, and secured a No Trade Clause. But what exactly is a No Trade Clause in NBA? Find out
LeBron James chose to opt out of his contract during the 2024 NBA offseason, but everyone knew he’d re-sign with the Lakers. James wanted to play alongside his son Bronny, who the Lakers picked 55th overall in the 2024 NBA Draft. This happened before James opted out, so many thought he just canceled the final year of his contract to sign a new, short-term deal. This way, he could have the most flexibility and earning potential as he nears the end of his NBA career.
He succeeded. James not only signed a two-year contract with a player option for the 2025-26 season, but he also secured something very few players in NBA history have: a full no-trade clause. But what exactly is a no trade clause in the NBA? Read further to find out!
What is a No Trade Clause in NBA?
In theory, a no-trade clause is exactly what it sounds like. It gives players the right to refuse—or the requirement to approve, if you prefer—any trade involving them. However, they are extremely rare.
This rarity is largely due to the specific conditions that must be met before a player can be offered one. To be eligible for a no-trade clause in a new contract, a player must have eight years of NBA experience and have spent at least part of four of those seasons with the team he’s signing with.
These are the basic requirements for no-trade clause eligibility, and they must be met at the time of signing the contract. If a player reaches these milestones while on an existing deal, he can’t retroactively add a no-trade clause.
As the NBA’s latest Collective Bargaining Agreement explains: "A Player Contract entered into by a player who has eight (8) or more Years of Service in the NBA and who has rendered four (4) or more Years of Service for the Team entering into such Contract may contain a prohibition or limitation of such Team’s right to trade such Contract to another NBA Team."
So, in short, to qualify for a no-trade clause, a player must:
- Have at least eight seasons of NBA experience.
- Have spent at least four seasons with the team he’s signing with.
This last requirement is the most flexible. A player doesn’t need to have spent the past four consecutive seasons with the team; he just needs to have spent at least four seasons with that team at some point.
Additionally, a partial season can count as one of those four seasons needed to qualify for a no-trade clause. Still, these three requirements are enough to disqualify many players from receiving a no-trade clause.
A player with a no-trade clause in his contract and who consents to a trade retains the right to veto a trade when he joins his new team. Although explicit no-trade clauses are rare, there are a few other scenarios in which a player can have an implicit no-trade clause, meaning his consent is still required for a trade.
First, a player who re-signs with his previous team on a one-year contract, or a two-year deal with an option year, is given no-trade protection for the rest of that league year or until his second-year option is exercised.
More details about NBA’s no trade clause criteria
Here are a few more details related to the criteria for a no trade clause in NBA:
- A player who meets these criteria and consents to a trade will lose his Bird or Early Bird rights at the end of the season and will instead be deemed to have Non-Bird rights.
- These criteria don’t apply to players on two-way contracts but do apply to players who accept standard (non-two-way) one-year qualifying offers as restricted free agents.
- The NBA’s new Collective Bargaining Agreement allows a player who re-signs with his former team on a one-year contract (or a two-year deal with an option) to waive his ability to veto a trade.
Second, a player who, as a restricted free agent, signs an offer sheet and has that offer matched by his previous team can veto a trade for a full calendar year.
LeBron just completed his sixth season with the Lakers. On top of that, he has played 21 NBA seasons, hence, he’s more than eligible to include a no-trade clause in his contract.
READ MORE: Lakers in Talks With Former Player Kyle Kuzma to Help LeBron James Win NBA Championship: Rumor
LeBron James' contract details
- Length: Two years
- Value: $104 million
- AAV: $52 million
James will earn up to $104 million from his two-year extension with the Lakers. However, the second year is a player option. This gives James maximum flexibility, allowing him to opt out and either re-sign a new, short-term, market-setting deal with the Lakers or pursue a contract with another team if he thinks Los Angeles’ title contention window has closed.
Additionally, James won’t have to worry about trade rumors, which surfaced during the 2023-24 season. His contract includes a rare, full no-trade clause, allowing him to control whether the Lakers can trade him.
READ MORE: Bronny James Contract: How Much Will LeBron James’ Son Make With Lakers?
NBA players with full No Trade Clauses
How rare is a no-trade clause in the NBA? James is one of only 10 players in NBA history to receive this guarantee in a contract extension. He’s the only one to have this provision included in his contract twice.
Here’s the list of players who have received full no-trade clauses:
- David Robinson, Spurs
- John Stockton, Jazz
- Kobe Bryant, Lakers
- Tim Duncan, Spurs
- Kevin Garnett, Timberwolves
- Dirk Nowitzki, Mavericks
- Dwyane Wade, Heat
- LeBron James, Cavaliers
- Carmelo Anthony, Knicks
- Bradley Beal, Wizards
- LeBron James, Lakers
Ironically, Anthony and Beal—the two most recent players to agree to no-trade clauses before James—were traded before their contracts ended. They just had to approve their trade destinations. Anthony did so to join the Thunder in 2018, who then waived him; Beal agreed to join the Suns during the 2023 offseason.
James might consider a similar move if he doesn’t believe the Lakers are contenders. However, given his contract terms—unlike the long-term extensions many others on this list had—it’s more likely he would opt out after the season and sign elsewhere.
