The Los Angeles Lakers face many big decisions this offseason with regard to free agency. But one of their biggest questions could be related to Anthony Davis, who still has one more guaranteed year under contract and an early termination option (ETO) on a second season.
On Aug. 4, exactly three years after signing his original five-year deal with the Lakers, Davis becomes eligible for an extension that could tack on as many as three seasons onto his current deal.
Below, we break down all the possibilities and details regarding Davis’ extension:
Extension details
Davis can sign an extension for three years and a max of $167.6 million starting Aug. 4 and prior to the first day of the 2023-24 regular season. Davis would be required to “opt in” on his ETO, giving him a total contract of five years, $251.4 million that would run through the 2027-28 season, his age-34 campaign.
Under the rules of the CBA, a player cannot extend their contract if they decline an ETO, meaning Davis would need to “opt in” in order to be eligible for this max deal.
These numbers are also projected figures that are based on a five percent increase in the salary cap each year. Davis’ extension would technically be 140% raises in each year, but since the salary cap won’t increase at that rate, his deal would be adjusted to match the rise in the cap.
The salary cap can rise anywhere from five to 10 percent each season, giving Davis some wiggle room for potentially higher earnings in Years 3-5 of the extension.
Lakers choices
The Lakers must decide if they are going to offer him the maximum extension legally allowed under the new CBA, offer him something less or simply allow him to decide on his ETO and potentially have him enter unrestricted free agency in 2024.
These choices could be significantly dependent upon the status of LeBron James.
James, like Davis, has one more guaranteed season under contract, followed by a player option in 2024-25. James, who has already been hinting at retirement or wanting to play alongside his son, Bronny James, in the NBA, may choose to leave the Lakers after this season.
If he does, L.A. may not want to commit long-term to Davis, which means they would not offer him this extension and allow him to make the decision on his future after this season.
Davis has said he believes that he and James can win another championship at the helm of the Lakers, and he’ll have the chance to prove that in 2023-24 regardless of a potential extension.
Davis has also given no indication that he has any intention of leaving the Lakers as he told Pau Gasol earlier this season that he wants his No. 3 jersey retired next to him one day.
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