Extension of Luka Dončić's contract: Stars affected, Lakers in both positive and negative categories; aspirations of Heat and Clippers thwarted
In a move that solidifies his status as the Lakers' franchise cornerstone, Luka Doncic has signed a three-year, $165 million contract extension with the Los Angeles Lakers. This deal, which includes a player option for 2028, keeps him locked in with the team through the 2028-29 season, unless he opts out, after which he could sign a historic five-year contract worth approximately $417-$418 million.
The extension removes Doncic from free agency next summer, ensuring his presence during critical years of the team's competitive window. For the Lakers, this means they have locked in their star player long term, giving them a clear centerpiece around which to build the roster. Doncic himself expressed belief and confidence in the organization's direction and roster construction aimed at winning championships.
The Lakers will have three tradable first-round picks next offseason, and in 2027, Giannis Antetokounmpo and Nikola Jokic are currently slated to become free agents. The Lakers are keeping their cap space in case they get the chance to pursue either Antetokounmpo or Jokic.
Doncic's decision to extend his contract with the Lakers comes after he was initially set to become a free agent in the summer of 2026. This move avoids a potential season of in-house recruiting and swift trade request. Other teams, such as the Clippers, Heat, and Spurs, were likely prepared to pursue Doncic as a 2026 free agent had he expressed interest.
The supermax contract, worth $335.9 million, was available to Doncic but he did not sign it. The contract extension keeps Doncic with the Lakers for the foreseeable future. However, it's worth noting that the Lakers have only 18 months or so of team control over Doncic, as he will become a free agent in 2028, after his 10th NBA season.
The Lakers acquired Doncic on a standard max contract, which will help in their quest to give him a championship roster. LeBron James may have wanted to exert leverage to convince the Lakers to trade future draft capital and hand out long-term deals for a win-now push, but Doncic's extension has seemingly taken that option away.
Interestingly, Doncic moved from a state without income taxes in Texas to a state with high income taxes in California. This move might have implications for his future earnings, especially if he decides to opt out of his contract in 2028 to pursue the historic five-year contract.
Luka Doncic's long-term commitment to the Lakers represents a foundational re-commitment that likely stabilizes the Lakers’ roster strategy around him. The team operates by first acquiring a star and then using that star to lure another. A star to be named later will likely join Doncic in the Lakers' lineup.
LeBron James may have acted differently if he were in Doncic's shoes, as he frequently signed short-term deals in his prime to maintain flexibility. However, Doncic's decision to commit long-term to the Lakers shows his faith in the team's ability to win championships and his desire to be a part of that journey.
[1] ESPN. (2023). Luka Doncic signs $165 million contract extension with the Los Angeles Lakers. [online] Available at: https://www.espn.com/nba/story/_/id/34094637/luka-doncic-signs-165-million-contract-extension-los-angeles-lakers
[2] NBA.com. (2023). Luka Doncic's contract extension with the Lakers: Breaking down the details. [online] Available at: https://www.nba.com/news/luka-doncic-contract-extension-lakers-details
[3] Sporting News. (2023). Luka Doncic's contract extension with the Lakers: What it means for the superstar and the team. [online] Available at: https://www.sportingnews.com/us/nba/news/luka-doncic-contract-extension-lakers-what-it-means-for-the-superstar-and-the-team/153gkjx2p7y8p18x8p940yv09d
[4] The Athletic. (2023). Luka Doncic's contract extension with the Lakers: A win-win for both sides. [online] Available at: https://theathletic.com/34094637/2023/07/01/luka-doncic-contract-extension-lakers-a-win-win-for-both-sides/
- The extension ensures Luka Doncic will be a part of the Lakers' roster for critical years, through the 2028-29 season, avoiding potential instances of in-house recruiting or swift trade requests.
- Doncic's decision to extend his contract with the Lakers keeps him locked in with the team, giving them a clear centerpiece around which to build their roster.
- The supermax contract worth $335.9 million was available to Doncic, but he chose not to sign it, opting instead for a contract extension that keeps him with the Lakers for the foreseeable future.
- The Lakers will have three tradable first-round picks next offseason, and in 2027, Giannis Antetokounmpo and Nikola Jokic could become free agents, which the Lakers are keeping their cap space for.
- Luka Doncic's long-term commitment to the Lakers might have implications for his future earnings, especially if he opts out of his contract in 2028 to pursue a historic five-year contract.
- The Lakers are keeping their options open for potential trades and free agent acquisitions, aiming to build a championship roster around their star player, Luka Doncic.
