The blockbuster trade that sent Luka Doncic to the Los Angeles Lakers cost him a potential record-breaking contract extension, but NBA salary rules could still lead to an even bigger payday.
Doncic’s move from Dallas last week means he can’t sign a five-year, $345 million supermax extension this summer. Instead, his immediate options max out at four years and $229 million with the Lakers, according to CNBC.
However, NBA salary cap expert Bobby Marks identified a lucrative alternative path to CNBC. If Doncic signs a shorter deal this offseason, he could become eligible for a contract worth nearly $420 million when he reaches 10 years of service time.
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The financial implications move beyond contract values. Moving from Texas to California means Doncic faces much higher state income taxes, as Texas has no state income tax while California maintains the nation’s highest rate.
The trade reshaped both teams’ salary structures. Anthony Davis, heading to Dallas, is locked into a three-year, $186 million extension through at least 2026-27, with a player option worth nearly $63 million for 2027-28. Davis waived a $6 million trade kicker, partly due to Texas’s favorable tax environment, ESPN reported.
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Doncic, 25, currently earns an average of $43 million annually on his five-year, $215 million deal. Had he stayed in Dallas, his next contract could have averaged $69 million per year, potentially reaching $78 million for the 2030-31 season.
The trade surprised the basketball world. The three-team deal sent Doncic, Maxi Kleber, and Markieff Morris to Los Angeles, while Dallas received Davis, Max Christie, and an unprotected 2029 first-round pick.
Doncic who averages 28.6 points, 8.7 rebounds, and 8.3 assists for his career, the move could mean sacrificing short-term earnings for long-term potential.
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The deal’s timing could affect more than just Doncic’s earnings. Reports of tension in Dallas came after the deal, but Doncic maintained professionalism. “I would say I always take the high road. I had my amazing moments in Dallas with all my teammates, coaches and most importantly the fans,” he told ESPN. “They always supported me, and it was an amazing journey.”
The move also points to broader NBA salary trends, as teams navigate the league’s increasingly complex cap rules. Players reaching 10 years of service can command up to 35% of a team’s salary cap, a threshold Doncic will hit just as the NBA’s new media rights deal is expected to dramatically increase team revenues.
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