Contrary to recent reports, Luka Dončić has not signed a $350 million contract with the NBA. In fact, his recent trade to the Los Angeles Lakers has made him ineligible for such a supermax extension.
In early February 2025, the Dallas Mavericks traded Dončić to the Los Angeles Lakers in exchange for Anthony Davis, Max Christie, and a future first-round draft pick. This move was influenced by the Mavericks’ concerns over Dončić’s conditioning and a reluctance to commit to a five-year, $345 million supermax extension.
NBA rules stipulate that supermax extensions are reserved for players re-signing with their current teams. Therefore, following the trade, Dončić became ineligible for the $345 million deal he could have secured with the Mavericks. Instead, with the Lakers, the maximum extension he can sign is a five-year contract worth approximately $229 million, resulting in a potential loss of around $116 million.
Additionally, relocating from Texas, which has no state income tax, to California, known for its higher tax rates, further impacts Dončić’s net earnings.
Despite these financial implications, joining the Lakers offers Dončić the opportunity to play for a storied franchise alongside LeBron James, potentially enhancing his brand and future earning potential. However, as of now, he has not signed a $350 million contract.
