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. This decision marks a significant moment in Dončić's career, as he had the opportunity to pursue a four-year, $229 million deal but opted for a shorter-term contract due to strategic financial considerations.

According to NBA reporter Marc Stein, the player option for the 2028-29 season provides Dončić the avenue to enter free agency in the summer of 2028. This position would allow him to negotiate a new five-year deal potentially exceeding $400 million. Such an agreement would surpass the expected five-year supermax contract, valued around $340 million, that he could have signed with the Dallas Mavericks this summer. Furthermore, if Dončić transitions to unrestricted free agency, he becomes eligible for a full no-trade clause in his next contract.

ESPN's Dave McMenamin highlighted that if Dončić forgoes his 2028-29 player option, his prospective five-year extension could be valued at approximately $418 million. This lucrative deal could position Dončić as the first player in NBA history to earn an $80 million salary for a single season, implying earnings of nearly $1 million per game. The final year of this contract could approach a remarkable $95 million, emphasizing his crucial role as the face of a franchise valued at $10 billion. Although the landscape of the league could evolve over the next three years, and factors such as injuries or performance could impact Dončić's trajectory, the Lakers are likely focused on securing his long-term happiness and presence within the organization.