Luka Doncic will soon be eligible to sign a five-year, $406 million extension with the Los Angeles Lakers, although he has reasons to turn it down.
When the Los Angeles Lakers made their blockbuster trade for Luka Doncic last season, they did so with the hopes that he could take over as the face of the franchise as LeBron James wraps up his illustrious career.
READ MORE: Kyrie Irving hails former Washington Wizards star’s draft legacy as one that won’t be repeated
Doncic only has two years left on his contract, including a player option for 2026-27. So far, he hasn’t given any clear signs about his long-term plans with the Lakers either way.
With James, Austin Reaves, and Deandre Ayton on board, the Lakers have built a strong core around Doncic and should be an attractive spot for free agents once James retires. And while Doncic can sign an even bigger deal next summer, there are reasons why it might make sense for him to commit sooner rather than later.
If Doncic holds off until next summer, he could land a three-year, $161 million extension, which would set him up for a $406 million deal starting in 2029.
He also has the option to sign a five-year extension this summer, worth $228 million and running through 2031.
By the time that contract ends, Doncic will be 32. At that point, there’s a chance he could secure an even larger deal than the $406 million one on offer next year—though that depends on his health and where the salary cap stands.
There’s also an argument for Doncic to sign now as a way of showing commitment to LA’s new ownership group. ESPN’s Brian Windhorst touched on this recently.
“There is something to be said for signaling to the new ownership group that I want to be your partner,” Windhorst said.
“And there are worse brands to commit to and worse ownership groups to commit to than the Lakers and Mark Walter.”
“So what Luka could do, even though there may not be a financial benefit for him connecting right now, there is something to be said for saying to the new ownership, ‘Let’s get into business together and let’s begin the process of doing this together.’”
With LeBron James approaching retirement and his contract set to expire next year, the Lakers will soon have the flexibility to build the team around Doncic, including pursuing players he wants to play alongside.
The plan is to keep Austin Reaves even as he hits free agency, and with both James and Ayton on shorter deals, Los Angeles should have an open roster spot and enough cap space to chase a star in free agency by 2026 or 2027.
Doncic could also choose to wait until next summer. The potential of landing a $406 million extension is hard to ignore, but if he backs himself to stay at the top of his game into his 30s, signing early might give him more long-term earnings while helping the Lakers build around him sooner.
More must-reads:
Get the latest news and rumors, customized to your favorite sports and teams. Emailed daily. Always free!