Luka Dončić has officially signed a three-year, $165 million extension with the Los Angeles Lakers that includes a player option for the final year. Although Dončić had the opportunity to secure a four-year deal worth up to $229 million, he opted for the shorter-term agreement for strategic reasons.

According to NBA reporter Marc Stein, the player option for the 2028-29 season allows Dončić to enter free agency in the summer of 2028. This move could enable him to sign a five-year contract potentially exceeding $400 million. Should this scenario unfold, it would overshadow the initial five-year supermax contract expected to be in the $340 million range with the Dallas Mavericks, which Dončić was projected to sign this summer. Additionally, he would be eligible for a full no-trade clause if he transitions to unrestricted free agency and signs a new contract.

ESPN's Dave McMenamin has estimated that the five-year extension Dončić could pursue, should he decline the player option in 2028-29, might be valued at approximately $418 million. Such a contract could break new ground in league history, as it may allow him to become the first player to earn an $80 million salary in a single season, translating to nearly $1 million per game. The final year of this contract could approach the remarkable figure of $95 million, underscoring his status as the face of a franchise valued at $10 billion. While it is noted that no-trade clauses typically become available to players with eight years of service time and four seasons with the same team, league sources suggest that Dončić will, in fact, be recognized as a four-year Laker by the time he considers this lucrative potential extension. With many variables in play over the next three years, including the possibility of injuries or underperformance, the Lakers are likely to prioritize keeping Dončić satisfied, especially given his pivotal role in the franchise's future.