Superstar Luka Doncic agrees to a reported three-year contract extension worth $165 million with the Lakers.
Los Angeles Lakers Sign Luka Dončić to Three-Year, $165 Million Contract Extension
The Los Angeles Lakers have secured the services of Luka Dončić for the next few seasons, as the Slovenian superstar has agreed to a three-year, $165 million contract extension. The deal, which includes a player option for the 2028-29 season, is a strategic move that sets Dončić up for potential future earnings while providing the Lakers with salary cap flexibility.
Dončić was initially eligible for a supermax contract extension with the Dallas Mavericks, worth approximately $335.9 million over five seasons. However, due to NBA rules limiting the amount of money a player can earn on an extension in the immediate aftermath of a trade, he had to wait to sign the extension.
The Lakers deal offers Dončić a shorter-term commitment, allowing him to become a free agent again after accruing 10 years of NBA service. This move unlocks the right to sign a larger maximum contract, with ESPN projecting his contract after free agency to be worth $417 million over five years.
By signing a deal with an option for the 2028-29 season, Dončić can opt out and sign a new five-year, $417 million deal worth 35% of the salary cap, which would recoup and surpass the money lost from leaving Dallas.
The key differences between the Lakers deal and the Mavericks' supermax are the contract length and structure, future earning potential, team flexibility and cap management, and commitment and market impact.
- Contract Length and Structure:
- The Lakers deal is for three years for $165 million with a 2028 player option, while the Mavericks' supermax is for five years for $315 million.
- Future Earning Potential:
- The Lakers deal defers some earnings but positions Dončić for a historic future contract, potentially making him the highest-paid NBA player with annual salaries above $80 million.
- The Mavericks supermax gave Dončić a large guaranteed sum immediately but capped maximum salary growth under the current supermax rules.
- Team Flexibility and Cap Management:
- The Lakers benefit from a team-friendly three-year deal initially, giving them more salary cap flexibility to surround Dončić with talent and remain competitive for championships in the near term.
- The five-year supermax with Dallas would have committed a large portion of cap space immediately, potentially limiting roster-building options.
- Commitment and Market Impact:
- Dončić’s Lakers extension ensures he is off the free-agent market for 2026-27, providing roster stability.
- Signing with the Lakers, rather than Dallas, explains the initial "lost" money but offers a chance for greater lifetime earnings and championship contention with a different franchise environment.
The Lakers have also made other roster moves, signing Deandre Ayton to fill their gaping hole at center and replacing Dorian Finney-Smith with Marcus Smart. Dončić himself has expressed his excitement about the move, writing on social media that he is eager to work towards bringing championships to L.A. and making Laker Nation proud.
Despite a slight dip in his stats in Los Angeles following his third-place MVP finish in 2024, Dončić is currently in the best shape of his career. The Lakers are optimistic that this new chapter in his career will yield even greater success.
- Fans of the Los Angeles Lakers are excited about the team's roster moves, specifically the addition of Luka Dončić, who has signed a three-year, $165 million contract extension.
- Even though Dončić is leaving the Dallas Mavericks, he will have the chance to potentially surpass the money he was initially eligible for in his new deal, with ESPN projecting his contract after free agency to be worth $417 million.
- The Lakers' decision to offer Dončić a shorter-term contract with a player option for the 2028-29 season allows him to become a free agent again after accruing 10 years of NBA service, positioning him for a larger maximum contract.
- By signing with the Lakers, Dončić has also shown his commitment to helping the team bring championships to Los Angeles and making Laker Nation proud.
- With the acquisitions of both Luka Dončić and Deandre Ayton, the Lakers have strengthened their roster for the upcoming season, making them a strong contender in the NBA's sports landscape.
