LeBron James will be eligible to sign a two-year, $97.1 million contract extension with the Los Angeles Lakers from Thursday. The two sides held "productive" talks during negotiations, according to his agent Rich Paul, CEO of Klutch Sports Group, but no agreement was reached.

James, Paul, Lakers vice president of basketball operations Rob Pelinka and the team's new head coach Darwin Ham discussed James' future with the purple and gold at the team's practice facility in El Segundo, California, on Thursday.

James, who turns 38 years old at the end of this year, still has one year left of his current contract with the Lakers and it's worth $44.5 million. He has until June 30, 2023 to sign a new deal or he will become an unrestricted free agent. He can sign a 1+1 deal to make about $47 million in the first year with player option for the 2024-25 season.

Despite his age, James still averaged 30.3 points, 8.2 rebounds, 6.2 assists, 1.3 steals and 1.1 blocks in 56 games for the Lakers in the 2021-22 season. He was selected for the All-NBA Third Team. However, his slipping was transparent on the court, especially on the defensive end. The Lakers will need to invest more in enhancing their squad if they want to continue contending for the NBA Championship relying on James.

Nonetheless, the trades to acquire Anthony Davis in 2019 and Russell Westbrook in 2021 cost most of the future assets the purple and gold has. One of the major reasons they failed to send Westbrook away during this offseason was that they were only willing to give up one first-round pick.

Moreover, the Lakers are not in the best performing or financial form after the 2021-22 chaotic campaign. Their total salaries will reach $171.4 million for the 2022-23 season, including the $47.1 million of Westbrook, $44.5 million of James and $38 million of Davis, according to hoopshype.com. Even if the team wants to improve their strength at all costs, there is very limited space for what they can do.

By contrast, most of the Lakers' contracts will come due in 2023 summer, allowing the team to collect as much as $76.5 million of salary space. They will be able to sign LeBron on a lucrative deal and likely another star by exploiting it.

That may not completely rally with James' goal of winning at the moment, it can be in his interest in the long term if he wants to chase more titles in the future with the purple and gold. The 2022-23 season will unavoidably be difficult for both him and the Lakers. Remaining patient will be key for both sides to snap out of the dire straits as soon as possible.