Luka Dončić has signed a three-year, $165 million contract extension with the Los Angeles Lakers, which includes a player option for the final year. While there were options for a four-year, $229 million contract, there are strategic reasons for Dončić's choice of a shorter-term agreement. According to NBA reporter Marc Stein, the player option for the 2028-29 season allows Dončić to become a free agent during the summer of 2028, providing the opportunity to sign a five-year contract potentially worth over $400 million.

Projected insights from ESPN's Dave McMenamin suggest that should Dončić decline his player option for 2028-29, he might be able to secure a five-year extension valued at around $418 million. This deal could position him as the first player in league history to receive an annual salary of $80 million, amounting to nearly $1 million per game, with the final year approaching a staggering $95 million. Such figures reflect his significance within a franchise valued at $10 billion.

The inclusion of a no-trade clause has also come into focus, with Stein emphasizing the eligibility criteria players must meet to include such clauses in their contracts, which require eight years of service and four seasons with the same team. Although Dončić will have completed approximately 3.5 seasons with the Lakers by the time he might sign this theoretical five-year deal, sources close to the league indicate he will indeed qualify as a four-year Laker. While the landscape can change significantly over the next three years, if Dončić maintains his career trajectory and stays relatively healthy, the Lakers will likely prioritize his long-term satisfaction, potentially leading to an even more lucrative contract that includes such clauses. The Lakers now find themselves pivoting strategically towards Dončić as the franchise's face, reflecting their commitment to keeping him at the center of their operations.