How the Lakers gained financial flexibility for 2025 by declining Jalen Hood-Schifino’s team option
By turning down Jalen Hood-Schifino’s $4.1 million team option, the Lakers gave themselves more wiggle room in free agency next offseason.
The Lakers declined their $4.1 million third-year team option on Jalen Hood-Schifino on Thursday, which means he’s now set to become an unrestricted free agent next summer. Shams Charania of ESPN reported that they did so to create “roster flexibility.”
That may sound like an empty platitude, but it could hint at how the Lakers are approaching the rest of the 2024-25 season, particularly with the trade deadline in mind.
If LeBron James picks up his $52.6 million player option for 2025-26, the Lakers will already be only a few million dollars below the luxury-tax line before adding anyone else. Had they picked up their team option on Hood-Schifino, they would have been roughly $4.7 million below the projected $187.9 million tax line. By declining it, they now should be nearly $7.7 million below.
They’re likely more concerned with their proximity to the two aprons, though. They’re now projected to be roughly $15.7 million below the first apron and almost $27.6 million below the second apron. They aren’t far enough below the first apron to use the full $14.1 million non-taxpayer mid-level exception and round out their roster with veteran-minimum contracts — teams that use the non-tax MLE are hard-capped at the first apron — but they can now easily fit the $5.7 million taxpayer MLE and stay below the second apron.
The uncertainty around LeBron James’ long-term future may also be motivating the Lakers to maintain as much flexibility as possible. Even if he turns down his $52.6 million player option for 2025-26 to either retire or sign elsewhere in free agency — retirement tour in Cleveland, anyone? — the Lakers would be projected to have less than $26 million in cap space. That’s nowhere near enough to replace a player of his caliber.
The Lakers are currently poised to have significant cap space in 2026, which could help them kick off their post-LeBron era with gusto. They’ll just have to hope the Bronny factor gives him motivation to stick around one more year. But they can now effectively replace Hood-Schifino with two players on minimum contracts ($2.3 million each) for nearly the same amount of money.
The money might not have been the main issue with Hood-Schifino, though. Roster spots were likely the larger concern. If James returns in 2025-26, the Lakers already have 10 players under contract for next season. Since they’re already burning one roster spot on a developmental project in Bronny, they’d be risking depth issues by keeping Hood-Schifino around, particularly if injuries began to mount.
With Hood-Schifino no longer on their books, the Lakers can now enter next offseason with five open roster spots and enough space under the second apron to both spend the taxpayer MLE and not worry about aggregation restrictions in trades. If James does return for one final go-round, they’re giving themselves a better chance to add valuable ring-chasers on minimum deals without worrying about the punishing new CBA.
To be clear, declining Hood-Schifino’s team option is horrendous asset management overall. Jaime Jaquez Jr., Brandin Podziemski and Cam Whitmore were the next three players off the board after Hood-Schifino in the 2023 draft, all of whom are legitimately helpful rotation players.
Perhaps the Lakers saw Hood-Schifino as a high-upside swing for their post-LeBron era, but they don’t have time to waste on projects with premium assets. And spending the No. 55 pick on Bronny is a slightly different story.
However, the Lakers do deserve credit for not doubling down on their mistake. Plenty of front offices refuse to admit failure on their draft picks, even if those guys never crack the rotation throughout their rookie-scale deals. The Lakers at least seem to recognize they need as many win-now players as possible while James is still on the team.
Hood-Schifino will wind up being a major whiff for the Lakers, particularly if Jaquez, Podz and Whitmore continue to pan out as they have so far. But declining his option gives the Lakers another open roster spot next summer for a veteran ring-chaser, and if the CBA keeps wreaking havoc on the NBA’s middle class, that could be far more valuable to them than Hood-Schifino figured to be next season.
Tyus Jones, Gary Trent Jr. and Delon Wright were among the players who signed minimum deals this past offseason. Meanwhile, Markelle Fultz and Lakers playoff legend Lonnie Walker IV are currently out of the league. There’s more value than ever to be found on the minimum market.
With Anthony Davis playing at an MVP level and the Lakers looking rejuvenated under JJ Redick, they may be gambling on becoming a premium destination for ring-chasers again. There are certainly worse bets to make...
Like, say, drafting JHS in the first place.
Unless otherwise noted, all stats via NBA.com, PBPStats, Cleaning the Glass or Basketball Reference. All salary information via Salary Swish and salary-cap information via RealGM.