Luka Doncic could potentially earn a $406 million contract with the Lakers in three years if he plays his cards right, says an NBA Insider.

Luka Doncic’s contract extension is now widely considered the biggest decision due for the Lakers this summer.

On August 2nd, Doncic will become eligible to sign a five-year $228 million extension with the Lakers.

There have been several questions around how the Lakers plan to let this play out, considering they need the financial flexibility.

NBA Insider John Hollinger believes that if the Lakers’ star takes a short-term extension at first and waives the player option he has on his contract next season, then in 2028, he will become eligible for a $406 million extension.

“Contractually, Doncic is a rarity: a superstar who was traded before his second contract ended. That makes him ineligible for the supermax deal that most players of his ilk can sign at the end of their second contract. Thus, the massive deals for Jayson Tatum and Gilgeous-Alexander the last two summers aren’t there for Dončić … yet.”

“However, if he were to void his player option in 2026 and sign a three-year, $161 million extension with the Lakers with a 2028-29 player option, he would be a 10-year vet in the summer of 2028. At that point, he could sign a monstrous five-year deal worth up to approximately $406 million to remain in L.A.,” explains Hollinger.

Hollinger is not the first to suggest that Doncic take a pay cut in terms of taking a short-term contract instead of a long-term commitment that is worth a lot more than these short-term contracts.

Right after the Playoffs ended, ESPN’s Bobby Marks also anticipated that Doncic could take a short-term $165 million contract instead of the $228 million completely.

Doncic played only 28 games for the Lakers this season, where he averaged 28.2 points, 8.1 rebounds, and 7.5 assists; he is almost certainly becoming the franchise cornerstone for the Lakers’ future.

While it will be favorable for the Lakers to agree on a long-term contract to make Doncic the cornerstone of the team, Doncic may not agree to a long-term deal for mainly two reasons.

He already took a significant hit on his potential earnings, and if he figures out that this way, a much larger contract comes his way sooner, it is unlikely that he will agree to a long-term contract.

Luka Doncic nearly lost $100 million in potential earnings after the Mavericks traded him to the Lakers.

Will he now take a financially friendly deal for the Lakers to help them build a contending roster around him?

Or will he adamantly ask for the money he almost certainly deserves?

Too many unanswered questions lie in Luka Doncic’s future.