LeBron James took a 92% pay cut to chase a title — here’s how regular workers can survive a pay cut too
Kevin Mazur/Getty Images While Philadelphia is known for its “Brotherly Love,” The Athletic noted a marked local shift to “profane shock and exultant joy” after LeBron James’ recent signing with the 76ers, noting his goal of bringing an NBA title to the city that hasn’t won one since 1983. “I’m not going for money. I’m…
While Philadelphia is known for its “Brotherly Love,” The Athletic noted a marked local shift to “profane shock and exultant joy” after LeBron James’ recent signing with the 76ers, noting his goal of bringing an NBA title to the city that hasn’t won one since 1983.
“I’m not going for money. I’m not going for family,” James said on social media when explaining his decision to sign with the club as a free agent. “I still want to compete, to win and to have a chance at the feeling of winning another championship.”
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Perhaps not since Rocky Balboa ran up the Philadelphia Museum of Art steps has the city rallied so hard around one athlete, with preseason ticket prices up nearly 400% and James’ new jersey selling out its initial run.
Yet the bigger story behind James’ foray to Philadelphia is the fact that he took a 92% pay cut to make the move. James made more than $52 million with the Los Angeles Lakers last year and just signed a two-year contract with Philly for $4 million a year.
Of course, that sort of salary downgrade is a lot easier to sell to your accountant when you’re already worth more than a billion dollars. Still, James’ decision reflects the relatable desire to pursue passion over a paycheck.
The question is whether, realistically, that’s a smart move if you aren’t among the richest athletes of all time?
The career assist that can come with taking a smaller salary
Taking a pay cut sounds counterintuitive — like not passing the ball to LeBron, the NBA’s all-time points leader, when the game’s on the line — but there are times when it can make financial sense.
Glassdoor found job switchers are 30% more likely to take a pay cut in 2026 than in 2018, partly because of a slower job market. Still other, more positive, reasons to make the switch include an opportunity for career development, to change careers entirely or to simply achieve a better work-life balance.
Sometimes retaining a job within your own industry necessitates it. Northwestern Mutual noted that some employers may overpay, so keeping your job or moving to a new company could require a drop to a more industry-realistic salary.
In other instances, better benefits, retirement matching or a shorter commute can offset lower pay.
“Ask yourself, how bad do you need to get out of your current situation?,” Emily Durham, a career coach, told Glassdoor. “Maybe you accept this job and keep job hunting. Or, maybe the title or work experience is worth the salary dip, short term. These are real questions to sit with.”
Xerox CEO Steve Bandrowczak, for example, has said he once took “a huge salary cut” to leave DHL for Lenovo because the role offered “invaluable” experience. Another step down later gave him sales leadership experience, all of which eventually helped him land the CEO job.
Strategic pay cuts can also work beyond the executive suite, as long as they align with your career goals and, just as importantly, your finances.
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Winning with the smaller paycheck playbook
Potential salary ranges, as well as the impact on your own budget and credit, are just a few of the considerations to make before jumping ship to pursue a career passion for less pay.
Recruitment firm Davron recommends looking past the salary difference and calculating whether “health benefits, retirement contributions and commute savings can close or exceed the pay gap,” while also considering the long-term benefits of the move.
“Flexibility, balance, and career growth often pay greater dividends than a few extra thousand dollars upfront,” they advise, while warning that jumping to a financially unstable company, or sacrificing benefits, could prove a mistake in the long run.
Others, meanwhile, suggest upskilling before quitting your current gig and even volunteering in your desired sector first to give you a better idea of what to expect.
And Chicago-based career coach Tricia Gehl says to set a salary “no-go zone” to ensure you set boundaries for financial risk and how much salary you’re willing to sacrifice for the new gig.
Maintaining a strict budget and cutting unnecessary expenses, and even starting a side-hustle, may all help offset the lost salary, while continuing retirement contributions could mean you pay less at tax time.
Chikara Kennedy, a former Meta HR manager, serves as a beacon of hope for those looking to reinvent their lives and careers, even at the cost of a pay cut. Though hers came courtesy of a layoff in 2023 rather than via personal choice, she used the opportunity to start her own life and career coaching business.
She told Business Insider she now earns half her former salary but offset the change, in part, by moving to Mexico, where the cost of living is lower.
“While I make less money today, many aspects of my life have improved dramatically: my health, stress levels, flexibility, relationships, and overall quality of life,” she explained. “This wasn’t just a financial reinvention. It was emotional and identity-based too.”
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This article originally appeared on Moneywise.com under the title: LeBron James took a 92% pay cut to chase a title — here’s how regular workers can survive a pay cut too
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