Luka Doncic Likely to Take $64 Million Pay Cut on Lakers Extension This Summer

Originally posted on Athlon Sports | By Max Dible | Last updated Jun 21, 2025 2:28 PM ET

With all due respect to the attractive and lucrative markets of New York and Miami, Los Angeles is pretty much the place to be when it comes to NBA superstars.

Several of them reside in Southern California's most populous metropolis during the offseason, even if they play elsewhere across the league. Lakers star Luka Doncic was an exception to the rule ahead of last February's trade deadline, as he both played and resided in Dallas and was content to remain there.

But the Mavericks sent him packing to L.A. and the league's premier franchise, which just sold to one of the richest ownership groups in all of sports at a valuation of $10 billion. That is massively good news for Doncic, as well as Lakers fans everywhere, given the level of resources about to be mainlined into the franchise.

Despite that, however, Doncic is highly likely to take less money over fewer years on an extension in Los Angeles this summer (assuming he signs one) with an eye toward the future -- specifically the summer of 2028.

"On August 2, [Doncic] can add four years and $229 million to his deal," Brian Windhorst of ESPN reported on Saturday, June 21. "But he could (and it might financially be smarter to) also sign for $165 million over three years with a chance to opt out in 2028."

That doesn't mean Doncic is more likely to leave L.A. in three years. In fact, it would indicate an even stronger likelihood that he opts out at that time and inks an even longer-term deal to remain in purple and gold -- potentially through the end of what has already been a Hall of Fame career just seven years in.

Should Doncic take the three-year contract rather than the four-year agreement, which is worth $64 million less overall, he can put himself in a position to renegotiate a super-max deal at 35% of the salary cap rather than 30% he can sign for now after hitting the 10-year NBA service mark.

Furthermore, the league's salary cap is almost certainly going to be considerably higher three years from now than it is today, as the NBA's new television deal increases the cap incrementally season over season. That deal, if and when Doncic signs it, will probably be the richest contract ever in league history -- and the new ownership group will be able to pay it with ease.

This article first appeared on Athlon Sports and was syndicated with permission.

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