LeBron James will exercise early termination option on contract, become free agent

LeBron James will become a free agent once again on July 1, and it could be the summer of 2010 all over again.

This comes according to a report from ESPN's Chris Broussard (who, you may recall, nailed The Decision), who cites James' agent as saying James has told the Miami Heat he will exercise the early termination option on his contract.

The report has since been confirmed through James agent:

Had James declined to exercise the option, he would have played the 2014-15 season for the Heat while earning $20.6 million before facing a player option year in 2015-16.

He is now free to negotiate with any team, though his opting out does not preclude him from re-signing with the Heat. The Heat can still offer him more money than any other team since they own his Bird rights, allowing them to offer five years and $127.7 million, compared to the $94.8 million over four years he could earn elsewhere.

With that said, it seems more likely James would take a below-max deal to remain with Miami to allow for a better supporting cast to be built around him, something he is expected to demand:

James, Dwyane Wade and Chris Bosh have until June 30 to exercise the opt-out in their contracts. James is said to have revealed his decision early to give inquiring teams requisite time to formulate a pitch and, more importantly, work out a way to clear cap space if necessary.

While the Heat sound relatively confident they will be able to retain their core (or at least, Pat Riley does), what happens next is anyone's guess. Riley released a statement suggesting that this was expected and doesn't change anything from the franchise's perspective:

I was informed this morning of his intentions. We fully expected LeBron to opt-out and exercise his free agent rights, so this does not come as a surprise.
...
We look forward to sitting down with LeBron and his representatives and talking about our future together. At the moment, we are preparing for the opportunities in the Draft and Free Agency as we continue with our goal of winning NBA Championships.

It is somewhat surprising that James, Wade and Bosh did not announce their intentions together, though looking into that may be a case of looking for a signal where there isn't one.

As a four-time MVP and the best player in the world, James will have an endless list of suitors. It's worth keeping in mind that Miami seemed an impossibility in 2010, as did James and two other stars taking less money to play together, so anything is possible this time around.

The assumption in most circles is that the Heat remain the favorite to retain him, depending on how they plan to improve the roster. However, a sign-and-trade to the Los Angeles Clippers is reportedly something James' camp is intrigued by, while the Houston Rockets, Cleveland Cavaliers, Los Angeles Lakers, Atlnta Hawks and more have plans in place to try to lure James, perhaps with another star.

The apparent secrecy of the proceedings isn't a pre-planned choice being played close to the chest, if you're inclined to believe reports:

James is expected to take meetings with any number of teams over the next few weeks, beginning on July 1, when he technically becomes a free agent. Expect plenty of speculation and maneuvering from teams in the weeks to come.