Los Angeles Lakers star Luka Doncic 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 critical new deal keeps Doncic out of free agency next summer, eliminating his 2026-27 player option in place of the new contract.
Doncic could opt out in 2028 and sign a new deal for 35% of the salary cap, which projects to five years and $417 million. In doing so, Doncic would recoup all the money lost when he was traded by the Dallas Mavericks, with whom he had been eligible to sign a five-year, $315 million supermax extension this summer.
The Lakers announced Saturday that they had signed Doncic to an extension but did not disclose terms.
"I'm really grateful to the Lakers organization, my teammates and the fans for welcoming me and my family with so much support and kindness since day one," Doncic said in a statement. "This is an amazing organization, and I truly believe in what we're building together. I'm going to keep working as hard as I can to bring another championship to Los Angeles and to make Laker Nation proud.
"This is just the beginning. I'm excited for what's ahead and to keep building something special with this team."
The Lakers acquired Doncic from the Mavericks for Anthony Davis six months ago in one of the most shocking trades in pro sports history. Led by governor Jeanie Buss, president of basketball operations Rob Pelinka and new owner Mark Walter, the Lakers have established a close rapport with Doncic, his chief brand officer and business manager Lara Beth Seager, and Duffy.
Pelinka called Doncic "one of the game's most transcendent players" as part of the extension announcement.
"Luka is an absolute killer on the court, and blends that with a unique generosity and care for the community," Pelinka said. "Above all else, Luka will lead our franchise to pursue future championships, a goal that will forever define the Lakers."
Doncic averaged 28.2 points, 8.2 rebounds and 7.7 assists with the Mavericks and Lakers in a career-low 50 games last season. He led the Lakers in points, rebounds, assists, steals and 3-pointers per game after making his debut with the team Feb. 10.
A five-time first-team All-NBA selection, Doncic has also been making his presence with the franchise felt off the court. He has played a significant part in the Lakers' offseason pickups of Deandre Ayton and Marcus Smart, holding a good relationship with Ayton, the No. 1 pick in their shared draft class, and recruiting Smart with multiple calls while traveling abroad on family and basketball commitments.
In Monday's issue of Men's Health, Doncic also detailed the major changes to his body and 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."
Doncic has individually played at a championship level in the postseason. He became the first player in NBA history to lead the playoffs in points, rebounds, assists and steals during the Mavericks' 2024 run to the Finals, which ended in a loss to the Boston Celtics.
In his first postseason with the Lakers, Doncic became the fifth player in franchise history to average 30 points, 5 rebounds and 5 assists in a series. However, Los Angeles was eliminated in the first round by the Minnesota Timberwolves in five games.