Luka Dončić turns down $340 million: a masterful move to secure historic deal in 2028

Luka Dončić wasted no time affirming his commitment to the Los Angeles Lakers. The Slovenian point guard signed a three-year, $165 million contract extension on Saturday, tying him to the club through at least the 2027-2028 season. This signing came on the first day Dončić was eligible to negotiate a new contract with the Lakers.

« Being a Laker is an honor, and I wanted to be here, » said Dončić during a press conference held under the championship banners at the Lakers’ training facility. « When you look up there, so many great names and what they accomplished. I want to be up there too one day. »

I just signed my extension with the Lakers. Excited to keep working to bring championships to LA and make Laker Nation proud. Grateful to the Lakers, my teammates and all the fans who’ve shown so much love since day one. This is just the beginning. 💜💛 pic.twitter.com/PrTfTxxlpU

— Luka Doncic (@luka7doncic) August 2, 2025

A calculated financial strategy for a record contract

The extension includes a player option for the 2028-2029 season and replaces his previous contract that had a player option for 2026-2027. According to ESPN, the annual salary breakdown is as follows: $54.8 million in 2025-2026, $57.1 million in 2026-2027, $61.6 million in 2027-2028, and $57.6 million for the 2028-2029 player option.

Although Dončić could have signed a four-year, $229 million contract, he chose a shorter duration for strategic reasons. This player option for 2028-2029 will allow him to become a free agent in summer 2028 and subsequently sign a five-year contract worth over $400 million, far outweighing the $340 million supermax he was initially expected to sign with Dallas.

This future contract could make him the first player in history to earn an annual salary of over $80 million, with a final year approaching $95 million. Additionally, with eight years of NBA experience and four consecutive seasons with the Lakers, Dončić will be eligible for a no-trade clause in this next contract.

A winning bet for the Lakers and their new era

For the Lakers, securing Dončić represents a clear signal that a new era has begun. Acquired from Dallas last February in a seismic trade for Anthony Davis, the 26-year-old quickly won hearts. Despite playing only 50 games last season, he led the team in points, rebounds, assists, steals, and made three-pointers after his debut on February 10.

« Luka is one of the most transcendent players in the game, » said General Manager Rob Pelinka. « He’s a fierce competitor and a leader who’s committed to winning. We believe he can bring championship basketball back to Los Angeles. »

Dončić has already shaped the Lakers’ offseason by helping recruit Marcus Smart and Deandre Ayton. « Honestly, I think we have a great team, » he shared. « We have what it takes to compete for the championship. »