Luka Dončić has officially signed a three-year, $165 million contract extension with the Los Angeles Lakers, which includes a player option for the final year of the agreement. While it was possible for Dončić to have opted for a four-year, $229 million deal, he had strategic reasons for choosing a shorter commitment.

According to NBA reporter Marc Stein, the player option for the 2028-29 season allows Dončić the opportunity to enter free agency during the summer of 2028. This move could enable him to secure a five-year contract worth over $400 million. Such a deal would far exceed the five-year supermax contract estimated to be in the $340 million range that he might have signed with the Dallas Mavericks this summer. Additionally, if Dončić opts for unrestricted free agency, he would be eligible to include a full no-trade clause in his next contract.

ESPN's Dave McMenamin has projected that the potential five-year extension Dončić could sign if he declines the player option would be valued at approximately $418 million. This contract could make him the first player in NBA history to receive an annual salary exceeding $80 million, which translates to nearly $1 million per game. The final year of such an agreement could approach an astonishing $95 million, reflecting his status as the face of a $10 billion franchise. While players need eight years of service time and four seasons with the same team to secure a no-trade clause, Dončić is expected to qualify for this stipulation by the time he signs the hypothetical five-year extension. Although much can change in the next three years, the Lakers are anticipated to prioritize keeping Dončić as a keystone of their franchise amidst any potential challenges.