'Makes Sense' for Lakers' Anthony Davis to Sign 1-Year Contract, Says NBA Agent

The uncertainty regarding the NBA's salary cap because of the COVID-19 pandemic could lead to Anthony Davis signing a one-year contract with the Los Angeles Lakers this summer.

One agent told John Hollinger of The Athletic that it "makes sense" for every free agent to sign a short-term deal, citing the financial uncertainty created by the pandemic.

"It's just too much unknown," the agent said. "... It probably makes sense for everybody to sign a one-year deal. Even the big free agents—like Anthony Davis—sign a one-year deal [this summer] and see what the numbers are for '21 and sign a contract based off the projections for that."

Davis could theoretically opt in to his contract for the 2020-21 season, which would pay him $28.8 million. Should the NBA salary cap stay flat year-to-year, Davis' new max salary would start at $32.7 million.

The full effect of the coronavirus pandemic on the NBA's finances will not be clear until the end of the season. If the NBA is able to conduct its full postseason in Orlando, Florida, as planned, the losses will largely come from the lack of gate receipts and merchandise purchased by fans who typically attend games. Because the NBA had gotten through roughly 80 percent of the regular season before the pandemic, those overall losses would not be catastrophic.

However, a cancellation of the upcoming postseason would result in billions in lost revenue because of television contracts the league would have to pay back. The NBA's salary cap is determined by year-over-year revenue, so it's possible the cap for next season even goes down.

With a vaccine considered unlikely until sometime in 2021, it's possible the effects of the coronavirus continue into the 2020-21 season. If the NBA has to devise another "bubble" situation to play next season, it's likely the cap will take a greater hit then than it will this summer.

In that sense, it may be more palatable for Davis to sign a long-term max deal with the Lakers now to ensure his future is secured rather than taking a risk on the league's financial health in 2021.