Luka Dončić has officially signed a three-year, $165 million contract extension with the Los Angeles Lakers, which features a player option in the final year of the agreement. While Dončić could have pursued a longer-term deal valued at up to $229 million over four years, prudent financial considerations motivated him to opt for the shorter contract. According to NBA reporter Marc Stein, the player option for the 2028-29 season allows Dončić the opportunity to enter free agency in the summer of 2028, where he could negotiate a five-year agreement projected to exceed $400 million.

This potential second contract with the Lakers would significantly surpass the five-year supermax contract initially anticipated with the Dallas Mavericks, expected to be around $340 million this summer. Additionally, if Dončić opts for free agency and signs a completely new contract, he will be eligible for a full no-trade clause. ESPN's Dave McMenamin estimated that should Dončić choose to decline his 2028-29 player option, the extension could be worth approximately $418 million, allowing him to become the first NBA player to potentially earn an $80 million salary in a single season.

Furthermore, this significant financial maneuver has implications for the Lakers as they aim to solidify Dončić as the face of the franchise, a designation that has shifted from LeBron James. With potential concerns regarding player performance and health over the next several years, it will be vital for the Lakers to ensure Dončić's satisfaction and commitment. While no-trade clauses can present challenges, as seen in the past with teams like the Washington Wizards and Phoenix Suns, the Lakers' rapid pivot to prioritize Dončić underscores their intention to keep him engaged and fulfilled for the foreseeable future.