James Signs Two-year Deal With Flexibility

LeBron James has signed a two-year, $42.1 million contract with the Cleveland Cavaliers that provides flexibility for the NBA's biggest star with the league's maximum salary expected to rise in the future.

A person familiar with the negotiations says James' contract includes an option for the four-time league MVP to become a free agent next summer. However, it is strictly "a business deal." That's according to the person who spoke to The Associated Press on condition of anonymity because the team has not commented about the agreement.

By only signing for two years, James can get another contract with the Cavs before the 2016-17 season, when a new television deal is expected to push the maximum contract higher. The max contract for next season is $20.7 million. Until this deal, James had never been the highest paid player on his team in 11 seasons as a pro.

In other NBA free agency news:

— A person with knowledge of the details says Carmelo Anthony is staying with the New York Knicks. The Knicks offered Anthony a maximum contract worth nearly $130 million over five years. He also met with Chicago, Houston, Dallas and the Lakers, though the Knicks were able to offer about $35 million more than any of them under NBA rules.

— Paul Pierce is on the move for the second straight summer, this time from Brooklyn to the Washington Wizards. A person with knowledge of the deal tells The Associated Press that Pierce has agreed to a two-year contract with the Wizards.

— Free-agent center Pau Gasol (pow gah-SOHL') says he has decided to join the Chicago Bulls. He announced on his verified Twitter account that he was looking forward to the "new chapter" of his career. It was unclear if Gasol had signed with the Bulls or was a part of a sign-and-trade deal with the Los Angeles Lakers, where he had played for parts of seven seasons.

— The San Antonio Spurs have re-signed guard Patty Mills. He averaged 10.2 points and 2.1 rebounds per game last season, providing offensive spark off the bench in helping the Spurs win the NBA title in June. His playing status is up in the air right now as Mills tore the rotator cuff in his right shoulder and could miss six months or more while recovering.

— A day after securing the services of LeBron James, the Cleveland Cavaliers acquired center Brendan Haywood and forward Dwight Powell from Charlotte for guard Scotty Hopson and cash considerations.

— The Utah Jazz have matched Charlotte's four-year, $63 million offer for restricted free agent Gordon Hayward. Hayward averaged career highs of 16.2 points, 5.2 assists, 5.1 rebounds and 1.4 steals last season while leading the Jazz in scoring and minutes.

— Free agent guard Anthony Morrow has agreed to a three-year, $10 million deal with the Oklahoma City Thunder. Morrow's agent, Wallace Prather, confirmed the agreement and details of the deal in a text message to The Associated Press. Morrow, who played for New Orleans last season, has career averages of 10.4 points and 2.5 rebounds per game in six NBA seasons.

— A person familiar with the contract says free-agent forward Marvin Williams has agreed to a $14 million, two-year deal with the Charlotte Hornets. He averaged just over 9 points and 5 rebounds a game in 66 games for the Jazz last season.