Negotiations between the Los Angeles Lakers and Tyronn Lue have reached an impasse without an agreement to make him the franchise's next head coach, league sources told ESPN.
Lue and his representatives turned down the Lakers' offer Tuesday, league sources said. The Lakers then on Wednesday offered Lue a deal in the range of three years and $18 million after which Lue's side pulled out of negotiations.
According to the sources, Lue's camp was seeking a five-year deal with a salary commensurate with a championship resume.
Beyond an inability to agree on contractual terms, the Lakers had proposed several scenarios involving their preferred candidates for assistant coaches, including Jason Kidd, sources said.
The Cleveland Cavaliers still owe Lue $10-plus million on his contract payout, and accepting a less-than-market-value deal from the Lakers could ultimately cost him money.
Several days of discussions culminated Wednesday without an agreement that will reunite Lue and LeBron James, a partnership that delivered Cleveland the NBA championship in 2016.
Lue was a preferred choice of James, but his championship history as a Lakers player -- coupled with his successful run as Cavaliers coach -- also played a strong role in the Lakers offering him the job.
General manager Rob Pelinka and front-office advisor Kurt Rambis had interviewed Kidd for the head-coaching job, and became convinced that he should be a key member of a Lue coaching staff, league sources said. They believed Kidd could be impactful with point guard Lonzo Ball, and were impressed with the Milwaukee Bucks' player development during his tenure there. It isn't believed that Lue had objections to Kidd joining his staff, but the two had not discussed the possibility directly, league sources said.
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Lue's candidacy moved to the forefront once Sixers assistant Monty Williams accepted the Phoenix Suns' head-coaching job Friday. The coaching search began after the Lakers and coach Luke Walton parted ways April 12.
Before Lue's dismissal six games into the 2018-19 season, he had led the Cavaliers to three consecutive NBA Finals appearances. He had a 128-83 record in three-plus seasons in Cleveland.
As a player, Lue was part of Lakers championships in 2000 and 2001.
The Lakers also conducted head-coaching interviews with Kidd and Miami assistant Juwan Howard.