Anthony Davis and the Los Angeles Lakers have agreed to a three-year, $186 million max extension, the richest annual extension in NBA history at $62 million, according to Klutch Sports CEO Rich Paul. Davis, 30, is now locked in until 2028 for a total of over $270 million.
His new deal begins in the 2025-26 season. The eight-time All-Star has two years and $84 million left on the five-year, $189.9 million contract he signed with the Lakers in December 2020. He is slated to make $40,600,080 in 2023-24.
Davis’ previous deal also carries an early-termination option of $43,219,440 for 2024-25. His ETO has been eliminated. The extension required the 11-year veteran to opt in to his salary for 2024-25. Davis became eligible to sign the three-year extension on Friday.
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BREAKING: Lakers star Anthony Davis has agreed on a three-year $186M max extension, tying him to franchise thru 2028 for total of $270M-plus, @KlutchSports CEO Rich Paul tells ESPN. Davis lands richest annual extension in NBA history at $62M. pic.twitter.com/bf9kWgD7uz
— Adrian Wojnarowski (@wojespn) August 4, 2023
“Couldn’t think more highly of Anthony Davis as a Laker and as a player,” Lakers general manager Rob Pelinka released in a statement. “He’s helped deliver a championship to our franchise. He’s been an incredible captain and leader.”
Davis is projected to earn $57,604,894 (35% of cap) in 2025-26, $62,213,285 (34% of cap) in 2026-27, and $66,821,676 (34% of cap) in 2027-28. These estimated salaries exclude incentives and are subject to change based on the league’s annual salary cap. The numbers are based on a 10% cap increase in 2024-25 and 2025-26.
Anthony Davis, Los Angeles Lakers agree to a three-year, $186 million max extension worth a total of over $270 million; California tax breakdown
Of the 440 players under contract, 44 are slated to make at least $30 million in 2023-24, per ESPN NBA insider Bobby Marks. Thirty-two will earn between $20 million to $29 million, 79 are set to make between $10 million to $19 million, 115 are projected to earn $4 million-$10 million, and 170 will make $1 million-$4 million.
On Friday, it was originally reported that Davis’ total value of his contract with the opt in and a three-year extension would be $251.4 million over five years. Additionally, had the four-time All-NBA member played out his current deal and opted out next summer, he would have been eligible to sign a five-year max extension worth $288 million.
Anthony Davis just signed the NBA’s richest annual extension (3 years $186 million).
And the 𝘵𝘢𝘹𝘦𝘴 will be steep playing in LA: 🥴
$62M: Salary
–
$22.9M: Federal Tax
$6M: NBA Escrow
$4.1M: Cali Tax
$1.8M: Agent Fee
$1.8M: Jock Tax
$1.4M: FICA/Medicare
=
$24M: Net Income pic.twitter.com/JhjrGjNWhC— Andrew Petcash (@AndrewPetcash) August 5, 2023
For a California-tax breakdown based on a $60 million salary, an individual would pay $22.9 million in federal taxes, $4.1 million in state taxes, $6 million in NBA escrow, $1.8 million in agent fees, $1.8 million in jock taxes, and $1.4 million for FICA/Medicare.
Therefore, a person’s net income would be about $24 million. Escrow in the NBA is the amount the league holds in player salaries. The league currently holds 10% of salaries and distributes them to players after the season. This amount varies based on the collective bargaining agreement.
Through 11 NBA seasons, Anthony Davis has earned an estimated $226 million on signed contracts, excluding endorsement deals. The four-time All-Defensive member has accumulated $131.4 million over the last four seasons with the Lakers.
The eight-time All-Star posted career-high numbers in the 2022-23 season; Lakers’ other offseason moves
Furthermore, Davis made 54 starts in 56 appearances with the Lakers in the 2022-23 season. The 2020 NBA champ averaged 25.9 points, a career-high 12.5 rebounds, 2.6 assists, 1.1 steals, 2.0 blocks, and 34 minutes per game. Plus, he shot a career-best 56.3% from the field.
In Los Angeles’ 130-119 win over the Washington Wizards on Dec. 4, 2022, Davis recorded a career-high 55 points and 17 rebounds in 38 minutes of action. He finished 22-of-30 (73.3%) shooting from the floor, hit two 3-pointers, and went 9-of-9 (100%) at the foul line.
Davis has averaged 25 points and two blocks in five seasons of his NBA career, the third-highest total behind only Shaquille O’Neal and Kareem Abdul-Jabbar, according to ESPN Stats & Information.
Here’s the Anthony Davis extension breakdown.
The three extension years are based on the growth of the salary cap in 2024-25 and 2025-26 increasing 10% annually. pic.twitter.com/zHiEPeN6W4
— Bobby Marks (@BobbyMarks42) August 4, 2023
Moreover, Davis became the first player since Michael Jordan to average 30 or more points in the 2018 playoffs. During the 2023 NBA Playoffs, Davis became the third Lakers player with 50 blocks in a single postseason, joining O’Neal and Abdul-Jabbar.
Although injury-prone, Davis is one of the best scorers and rebounders when healthy. He led L.A. in rebounds last season and finished second in points per game behind LeBron James. Lakers fans are not doubting his resiliency. However, the big man is not getting any younger.
Other offseason moves for the Lakers include re-signing Austin Reaves (four-year, $54 million), Rui Hachimura (three-year, $51 million), and D’Angelo Russell (two-year, $37 million).
Not to mention, L.A. added Gabe Vincent (three-year, $33 million) and Cam Reddish (two-year, $4.6 million). Jaxson Hayes (two-year, $4.5 million) and Taurean Prince (one-year, $4.5 million) were signed as well.
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