Luka Dončić has officially signed a three-year, $165 million contract extension with the Los Angeles Lakers, featuring a player option in its final year. While Dončić had the opportunity to sign a more lucrative four-year, $229 million deal, he opted for a shorter-term agreement, a decision that is strategically beneficial for his career moving forward.

As noted by NBA reporter Marc Stein, the player option for the 2028-29 season allows Dončić the flexibility to enter free agency in the summer of 2028. This could pave the way for him to ink a five-year deal potentially exceeding $400 million. This subsequent extension could counterbalance the supermax contract worth approximately $340 million that he was projected to sign with the Dallas Mavericks this summer. Furthermore, should Dončić choose to explore unrestricted free agency, he would have the opportunity to secure a no-trade clause in his next contract, a significant advantage for a player of his caliber.

ESPN’s Dave McMenamin projects that if Dončić declines his 2028-29 player option, the five-year extension could be valued around $418 million. This deal could position him as the first player in league history to earn an $80 million salary in a single season, equating to nearly $1 million per game. As the final year of such a contract nears completion, it could escalate towards an astonishing $95 million, underscoring his status as the face of a franchise valued at $10 billion. It is important to note that players qualify for a no-trade clause only after achieving eight years of service time and four consecutive seasons with the same team. Though Dončić would be approaching 3.5 seasons with the Lakers upon signing the hypothetical five-year deal, sources within the league suggest that he would be recognized as a four-year Laker at that point, having completed four uninterrupted seasons with the franchise. While the future remains uncertain, with potential injuries or performance declines impacting Dončić's trajectory, should he maintain his healthy lifestyle and stellar career trajectory, the Lakers are likely to prioritize his happiness to ensure his long-term commitment to the team.