NBA superstar Luka Doncic will miss out on a $345 million contract due to being traded—how he could get some of that money back

A trade over the weekend shocked the basketball world. Superstars Luka Doncic and Anthony Davis swapped places in a three-team trade that sent Doncic to the Los Angeles Lakers and Davis to the Dallas Mavericks. The Utah Jazz were also involved in the trade.

But it’s not just the basketball implications that are raising questions — Doncic’s contract options are now in flux. He’s set to lose out on a lucrative contract extension from the Mavericks. Had he not been traded, he could have signed a 5-year $345 million contract extension. Now, his largest long-term option is a 4-year $229 million extension.

However, he could potentially make more in the long run, ESPN’s Bobby Marks said in a post on X.

Here’s what could happen, according to Marks: If Doncic signs a shorter-term contract in the offseason, he could later sign a contract totaling nearly $420 million that would begin in his 11th year (he’s currently in year seven.)

NBA players with 10 years of service are automatically eligible for a supermax deal — a type of contract extension in which NBA teams can give eligible players up to 35% of the total cap space allotted to that team for up to five years. Because salary caps go up every year, the potential amount could be higher in the future than it is right now.

Doncic, 25, is currently on a five-year $215 million contract, which transfers with him to the Lakers and gives him an average annual salary of $43 million. It is set to expire at the end of the 2026-2027 season, but he could choose to opt out at the end of the 2025-2026 season.

He almost certainly would have done that if he had stayed with the Mavericks and been eligible for the supermax extension. It would have been the richest contract in NBA history, averaging $69 million per year and including a 2030-31 season that could have netted him $78 million, according to Marks.

But now, he is no longer eligible since players with less than 10 years of service generally have to stay on the same team in order to receive such a deal. Although it wasn’t his decision to move teams, he still lost eligibility.

Moving from Texas to California, Doncic will now also owe far more in income taxes. Texas doesn’t levy any individual income tax, while California has the highest rate in the U.S.

In the meantime, 31-year-old Davis is locked into a three-year $186 million extension that he agreed to in August 2023 and will keep him under contract through at least 2026-2027 with the Mavericks. He can choose whether he wants to opt into the final year of his contract, 2027-2028, which would be worth nearly $63 million.

Davis could also be eligible for the supermax extension, but given his injury history and age, it is less likely that he would receive such a deal.

Davis waived nearly $6 million as a trade kicker — an extra sum paid to a player if he is traded. He declined in part due to the other monetary opportunities the trade presents, like a lack of state income tax in Texas and a potential contract extension with the Mavericks, ESPN’s Dave McMenamin reported.

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