BREAKING NEWS: Luka Doncic has signed a new contract extension valued at $406 million…

Luka Dončić’s contract extension is shaping up to be the biggest storyline for the Los Angeles Lakers this summer. Starting August 2nd, Dončić will be eligible to ink a five-year, $228 million deal with the franchise. However, with the Lakers needing to maintain financial flexibility, there are serious questions about how the team will navigate this pivotal decision.

NBA insider John Hollinger has outlined a potential strategy that could benefit both Dončić and the Lakers in the long term. According to him, if Dončić opts out of his 2026 player option and agrees to a shorter extension—specifically a three-year, $161 million deal with a player option in the final year—he would reach 10 years of NBA experience by the summer of 2028. At that point, he would qualify for a supermax extension worth roughly $406 million, significantly more than what he can command today.

NBA Insider Explains Luka Doncic's Roadmap To $406 Million Contract  Extension In His Lakers Future - Fadeaway World

Dončić finds himself in a unique contractual situation. As a superstar who was traded before completing his second contract, he is ineligible for the standard supermax extension typically available to players of his caliber. This makes his current situation more complex compared to stars like Jayson Tatum and Shai Gilgeous-Alexander, who both secured massive long-term deals in recent offseasons.

ESPN’s Bobby Marks also floated a similar suggestion following the Lakers’ playoff exit. He speculated that Dončić might consider a shorter-term extension valued at around $165 million instead of committing to the full $228 million immediately available. While this would mean a temporary sacrifice in earnings, it positions Dončić for a much more lucrative payday in a few years.

No Signs' Luka Doncic Won't Agree To Extension | Yardbarker

During the past season, Dončić only played in 28 games for the Lakers but still posted elite numbers—averaging 28.2 points, 8.1 rebounds, and 7.5 assists per game—reinforcing his role as the centerpiece of the team’s future.

Yet, Dončić may hesitate to lock into a long-term deal right away. After already missing out on close to $100 million in potential earnings following his trade from Dallas, he may be more cautious about maximizing his value. If taking a shorter extension now paves the way for a record-breaking contract in 2028, he could favor that route.

As the Lakers aim to secure their star long-term, the key question remains: will Dončić prioritize team-building flexibility or ensure he’s compensated at the level his performance demands? His decision could shape the Lakers’ future for years to come.

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