Luka Dončić Signs $165 Million Extension with Lakers

Summary

Luka Dončić has committed to the Los Angeles Lakers for the long term, signing a three-year, $165 million maximum contract extension on Saturday. The deal solidifies the 26-year-old Slovenian superstar as the franchise centerpiece six months after his blockbuster trade from Dallas. The extension includes a player option for 2028-29 and positions Dončić for an even larger payday when he reaches 10 years of NBA service.

Deal Details and Structure

Luka Dončić has agreed to a three-year, $165 million maximum contract extension, with a player option in 2028, agent Bill Duffy of WME Basketball told ESPN. The contract replaces his existing player option for 2026-27 and keeps him under contract through the 2027-28 season, with the ability to opt out in 2028.

The deal should keep the 26-year-old Doncic with Los Angeles through 2028 under a player option for the final season, after which he'll be eligible for a massive five-year extension that could allow him to recoup the max money he lost by getting traded by Dallas.

The timing was strategic for both parties. Dončić could opt out in 2028 and sign a new deal for 35% of the salary cap, which projects to five years and $417 million. This would allow him to recoup money lost when Dallas traded him, as he was originally eligible for a five-year, $315 million supermax extension with the Mavericks.

The Blockbuster Trade Background

The Lakers acquired Doncic from the Mavericks last February in a seismic trade for Anthony Davis. The midseason deal was widely discussed throughout the NBA.

Dallas acquired Davis, Max Christie and the Lakers' 2029 first-round pick in the three-team trade that also involved the Utah Jazz. "I believe that defense wins championships," Mavericks general manager Nico Harrison told ESPN's Tim MacMahon, explaining his motivation to deal Doncic for Davis.

Performance and Impact

Since joining the Lakers, Dončić has made an immediate impact. The five-time All-NBA selection and a five-time All-Star averaged 28.2 points, 8.2 assists and 7.7 rebounds per game last season while teaming up with LeBron James for 50 victories and the No. 3 seed in the Western Conference playoffs.

However, the Lakers lost to the Minnesota Timberwolves in the first round.

Fitness Transformation

A major storyline surrounding the extension has been Dončić's commitment to improving his physical conditioning. Doncic's ability to maintain his body was a sticking point while with the Mavericks, and Lakers coach JJ Redick made a point of saying in his final meeting with the media that players needed to "get in championship shape."

By all accounts, Dončić heard that message and he dropped "significant weight" ahead of the 2025-26 NBA season as he showed on the cover of Men's Health magazine. Reports indicate he adopted a strict training regimen including a gluten-free diet and two-a-day workouts in Croatia.

Recruitment and Team Building

Dončić has already taken on a leadership role in shaping the Lakers' roster. He adopted a gluten-free, low-sugar diet, took part in intermittent fasting and engaged in two-a-day workouts while training in Croatia and played a significant role in Los Angeles' successful bids to sign Deandre Ayton and Marcus Smart, persuading the two veterans to team up for the upcoming season.

Franchise Commitment

The extension represents a mutual commitment between player and franchise. "Being a Laker is an honor, and I wanted to be here," Doncic said during a news conference under the title banners and retired numbers festooning the gym at the Lakers' training complex.

Lakers GM Rob Pelinka emphasized the significance of the deal: "Today, Luka Doncic chose the Los Angeles Lakers," said Lakers general manager Rob Pelinka during a Saturday press conference. "And that is a monumental moment in Lakers history. We could not be more grateful."

Looking Ahead

The Lakers have positioned themselves for both immediate success and long-term flexibility. Even with Dončić's new contract accounting for a moderately expensive cap hold for key free agent Austin Reaves, the Lakers are currently positioned to generate significant cap space in the summer of 2026. This could allow them to pursue additional superstars to pair with Dončić.

"Excited to keep working to bring championships to L.A. and make Laker Nation proud," Doncic wrote on social media. "Grateful to the Lakers, my teammates and all the fans who've shown so much love since day one. This is just the beginning."

The deal officially transitions the Lakers from the LeBron James era to the Luka Dončić era, positioning the young superstar as the franchise's cornerstone for years to come as they pursue their 18th NBA championship.