Lakers expected to offer Anthony Davis contract extension this week

After largely getting their business in free agency done in the opening days, the Lakers can now turn their attention to the long-term future. There are some short-term issues to still address — namely in whether Christian Wood will be a Laker — but after that, and perhaps even before it, the team can focus on a different sort of contract situation.

On Friday, Aug. 4, Anthony Davis will become extension-eligible. Currently, he has an early termination option (ETO) for the final year of his deal in 2024-25, effectively making this the final year of his contract as he will almost certainly opt out of his deal at season’s end looking for a payday.

The Lakers, though, can secure him long-term with an extension for as much as $170 million over three years. Because it is an ETO and not a player option, any extension would start after that season, which is why it would be for three years and not four.

On Monday’s episode of Brian Windhorst & the Hoop Collective podcast, Windhorst along with Tim McMahon and Tim Bontemps of ESPN talked about players who will become extension-eligible before the season, starting with Davis. Notably, Windhorst reported that the Lakers and Davis are expected to have extension talks.

I do think there is an expectation that the Lakers make some sort of offer or show their intention to make some sort of offer.

It will almost certainly be a max offer, as it should be. While it would “only” be for three years and $170 million, he would make north of $250 million over the next five years with that deal.

There is the possibility that Davis plays out this season, opts out at season’s end and looks instead for a five-year max contract which would approach Jaylen Brown money, which is a truly wild sentence to write. Given his injury history, is that a gamble worth taking?

It should be noted that last time he signed a contract with the Lakers, he played out the season, opted out of his deal and signed a five-year deal. Perhaps that is the precedent for how he’ll treat this negotiation.

There are few things that could happen that would end with the Lakers not offering him the max money possibly in any discussions in the coming year. Having already played 10 years in the league, his contract will always be 35% of the cap, the max amount.

If he signs a 3-year extension now, he would be a free agent in 2027-28, assuming the final year includes an option, at age 34. Theoretically, he could get perhaps one more nice payday, whether from the Lakers or another team at that point, as likely his final big contract of his career.

Earlier in the summer, Dave McMenamin of ESPN also reported that he believes Davis and the Lakers will agree to an extension before the season begins.

These are all factors that the Lakers and Davis will have to weigh, but those discussions and deliberations will start this week officially.

You can follow Jacob on Twitter at @JacobRude.