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As expected, the Lakers and Luka Doncic have agreed to terms on a three-year, maximum-salary contract extension that includes a third-year player option, agent Bill Duffy tells Shams Charania of ESPN (Twitter link).

The deal will begin in 2026/27, replacing the player option on Doncic’s current contract. It will be worth roughly $160.8MM over three years based on the NBA’s most recent projection of a 7% cap increase next summer. The total value could reach $165.3MM if the cap ends up rising by the maximum allowable 10%.

Based on a 7% cap increase, the year-by-year breakdown would be as follows:

• 2025/26 (last year of current contract): $45,999,660
• 2026/27 (first year of extension): $49,641,600
• 2027/28: $53,612,928
• 2028/29 (player option): $57,584,256

Both the Lakers and Doncic have put out statements officially confirming the extension.

“I just signed my extension with the Lakers,” Doncic wrote (via Twitter). “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.

“Today I’m also committing $5 million to help 77 young athletes around the world chase their dreams, just like I did,” he added in a follow-up tweet. “Basketball gave me everything, and I’m lucky to be able to give back and help the next generation.

“Today is a monumental moment for our franchise,” Lakers president of basketball operations Rob Pelinka said in the team’s statement. “Luka Doncic’s future is with the Los Angeles Lakers. Luka is one of the game’s most transcendent players, and his on-court dominance and passion is without compare.

“From the moment Luka become a Laker, there was an immediate connection and admiration between Luka and our fanbase. You can feel it in your spirit when you attend a Lakers game. Luka is an absolute killer on the court, and blends that with a unique generosity and care for the community. Above all else, Luka will lead our franchise to pursue future championships, a goal that will forever define the Lakers.”

As we outlined earlier today, now that six months have passed since Doncic was traded from Dallas to Los Angeles, he had become eligible to sign a maximum-salary extension that could cover up to four additional seasons beyond 2025/26.

However, a three-year agreement with a 2028/29 player option makes more financial sense for him in the long run, since it will allow him to start his next contract in 2028, once he has 10 years of NBA service and qualifies for a higher maximum salary (starting at 35% of the cap instead of 30%).

If Doncic waits until 2028 free agency to sign his next contract and re-ups with the Lakers at the time, he could get a five-year deal worth up to a whopping $417MM. That $417MM projection would hinge on the salary cap increasing by 10% in each of the next three years, but even with slower cap growth, the five-time All-Star will have an opportunity for a massive, record-setting payday.

The NBA’s Rookie of the Year in 2019 and a five-time All-NBA first-teamer from 2020-24, Doncic battled a calf issue last season that limited him to 50 games (22 for Dallas and 28 for L.A.). He still put up his usual superlative numbers when he was available, averaging 28.2 points, 8.2 rebounds, 7.7 assists, and 1.8 steals per game with a .450/.368/.782 shooting line, but he and the Lakers failed to advance beyond the first round of the playoffs after he made the NBA Finals with the Mavericks a year earlier.

Motivated by the early postseason exit and criticism that leaked out of Dallas following February’s blockbuster trade, Doncic has dedicated this offseason to improving his body and his conditioning. He made changes to his diet and workout regimen and looked noticeably slimmed down in a recent Men’s Health photo shoot, as we detailed earlier this week.

We’ll get a chance to see the new-look Doncic in action later this month. He’s set to rejoin the Slovenian national team ahead of this year’s EuroBasket tournament. The club will play a handful of exhibition games in the coming weeks before the event begins on August 27. Slovenia’s group-play schedule will begin with an Aug. 28 matchup against Poland.

As for the Lakers, even with Doncic’s new extension on their books, they’ll have significant cap flexibility going forward. Doncic is their only player who currently has a guaranteed salary beyond the 2026/27 season (Jarred Vanderbilt holds a ’27/28 player option, while three other players have team options on their contracts).

The extension makes Doncic ineligible to be traded for six months, though it’s safe to assume that wasn’t an option the Lakers were considering.