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. This decision allows Dončić the flexibility to potentially become a free agent in the summer of 2028, presenting him with the opportunity to secure a more lucrative long-term deal thereafter.

According to NBA analyst Marc Stein, the player's option for the 2028-29 season could enable Dončić to sign a five-year contract worth in excess of $400 million, which would surpass the $340 million supermax contract he was expected to sign with the Dallas Mavericks this summer. Additionally, if Dončić opts for unrestricted free agency and signs a new contract, he would become eligible for a full no-trade clause, a valuable asset for many players.

ESPN's Dave McMenamin projected that the five-year deal Dončić could potentially sign after declining the player option would be around $418 million, making him the first player in the league's history to earn an $80 million salary per season. The final year of that contract could approach a staggering $95 million. While there are uncertainties in the future, such as performance and health, the Lakers are likely to prioritize keeping Dončić content as he assumes a central role in their franchise moving forward.