The Los Angeles Lakers accomplished their goal of signing superstar Luka Doncic to an extension, announcing a new three-year agreement on Saturday morning.
Doncic had plenty of options when it came to signing an extension with the Lakers said to be willing to offer him whatever contract structure he wanted. They landed on a three-year, $165 million deal with a player option in the 2028-29 season.
Here are the finances of that deal, broke down by Bobby Marks of ESPN:
Here’s the breakdown of the Luka Doncic contract: pic.twitter.com/sXtkLIiEiB
— Bobby Marks (@BobbyMarks42) August 2, 2025
Doncic could have signed up to a four-year, $229 million extension with the Lakers, but by signing a three-year deal with a player option, he can become a free agent again in 2028 or 2029. At that point, he will have 10 years of service time in the NBA and can sign a new massive five-year, $418 million deal.
The Lakers will also be able to offer another extension to Doncic in the summer of 2027, which would be for four years and $323 million.
If Doncic were to sign either of those deals, he would become the first player in NBA history to have an annual salary of at least $80 million. The final year of that deal could be worth around $95 million.
While Doncic appeared to lose significant money when the Dallas Mavericks traded him instead of signing him to a supermax extension, the 26-year-old appears on track to recoup that money with the Lakers. Barring a career-threatening injury, Doncic will have the opportunity to sign the largest extension in league history in two or three years. In the meantime though, he is on a pretty team-friendly contract, which should help the Lakers put adequate talent around him to compete for championships.
Luka Doncic excited about Lakers extension
After news dropped that Luka Doncic would be signing an extension with the Lakers, he released a statement expressing his excitement about it.
“I’m really grateful to the Lakers organization, my teammates and the fans for welcoming me and my family with so much support and kindness since day one,” said Doncic. “This is an amazing organization, and I truly believe in what we’re building together. I’m going to keep working as hard as I can to bring another championship to Los Angeles and to make Laker Nation proud. This is just the beginning. I’m excited for what’s ahead and to keep building something special with this team.”
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