Dwyane Wade (R) of Miami Heat and actress Rosario Dawson present an award at the 2006 ESPY Awards at Kodak Theatre in Hollywood, California July 12, 2006. [Reuters]

The five-year deals would have been worth around US$80 million, but James and Wade settled for some US$20 million less. However, when they become unrestricted free agents in the summer of 2010 as seven-year veterans, they can earn maximum contracts worth 30 percent of the salary cap under rules of the collective bargaining agreement. Players with fewer than seven years experience can earn only 25 percent of the cap.

"We did extensive research and with the way the CBA is set up, it makes the most business sense to sign this extension and then look at another new contract in four years," James said in an interview with the Cavaliers' Web site.

Both James and Wade said their decisions had nothing to do with wanting the ability to leave their teams earlier. And neither the Cavs nor Heat seemed concerned by the decisions their franchise players made.

"We did extensive research heading into this process and understood what our best options were to keep LeBron in a Cavaliers uniform while helping him capitalize on his financial opportunities," Cleveland general manager Danny Ferry said. "There is a mutual trust in putting together a commitment such as this and we are very excited about having LeBron in a Cavaliers' uniform for years to come and rewarding him appropriately."

Teams could begin negotiating with free agents on July 1, but deals couldn't be signed until Wednesday after the salary cap for the upcoming season was set at US$53.135 million. That cleared the way for a number of signings and trades:

The Grizzlies acquired and then signed Gay, the eighth pick in the draft, along with Stromile Swift for forward Shane Battier. The trade means that five of the first eight players selected on draft night have been dealt.

But the Rockets lost out on another player they wanted when free agent Mike James picked Minnesota. Houston thought it was going to land the Toronto guard.

"I was surprised," Rockets general manager Carroll Dawson said. "He campaigned pretty hard to get here. As far as I know, we were right in there. It was a shock. Those things happen."

Dallas got Austin Croshere from Indiana for Marquis Daniels in a previously agreed-to trade. The Mavericks also worked out a deal with Denver guard Greg Buckner.

The Clippers gave a two-year deal to Cassell, who sparked them to within a game of the Western Conference finals last season. But Radmanovic opted not to return and will try to provide a perimeter threat for Kobe Bryant and the Lakers.

The Hornets acquired Stojakovic and cash considerations from the Pacers in exchange for the draft rights to Andrew Betts, to boost their outside shooting. Claxton, the runner-up for the NBA's sixth man award last season, left the Hornets for a four-year deal worth about $25.5 million with the Atlanta Hawks.

"Peja coming to the Hornets is perhaps the biggest offseason acquisition in the history of the franchise," Hornets owner George Shinn said in a statement.

Utah sent guards Devin Brown, Keith McLeod and Andre Owens to Golden State for guard Derek Fisher. The Jazz, who fell just short of a playoff berth last season, also re-signed forward Matt Harpring to a four-year, $25 million deal.

Ben Wallace, who bolted Detroit for Chicago in what was perhaps the biggest free agent signing, will be introduced Thursday by the Bulls.