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Lakers: Why Anthony Davis won’t sign extension after NBA Finals

By Jason Reed

LAKE BUENA VISTA, FLORIDA - SEPTEMBER 26: LeBron James #23 of the Los Angeles Lakers and Anthony Davis #3 of the Los Angeles Lakers react during the fourth quarter against the Denver Nuggets in Game Five of the Western Conference Finals during the 2020 NBA Playoffs at AdventHealth Arena at the ESPN Wide World Of Sports Complex on September 26, 2020 in Lake Buena Vista, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevin C. Cox/Getty Images)
LAKE BUENA VISTA, FLORIDA - SEPTEMBER 26: LeBron James #23 of the Los Angeles Lakers and Anthony Davis #3 of the Los Angeles Lakers react during the fourth quarter against the Denver Nuggets in Game Five of the Western Conference Finals during the 2020 NBA Playoffs at AdventHealth Arena at the ESPN Wide World Of Sports Complex on September 26, 2020 in Lake Buena Vista, Florida. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Kevin C. Cox/Getty Images) /
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(Photo by Mike Ehrmann/Getty Images) – Los Angeles Lakers
(Photo by Mike Ehrmann/Getty Images) – Los Angeles Lakers /

1. It might make more financial sense to wait a year

99 times out of 100 it is smarter to sign the max extension rather than taking the last year of the contract with the player option and then signing the extension. Anything can happen in that one year and we saw it burn DeMarcus Cousins months before his max extension was due.

Davis would be taking a risk and if he got hurt then he could lose out on a lot of money, that is true. However, the Lakers would understandably be very cautious with AD in the season and even if he suffered a big injury he is at the point of his career where he would still get big money from LA.

Kevin Durant’s Achilles injury did not stop him from getting a huge contract.

So why does it make sense for AD to wait a year?

The salary cap is going to remain at $109 million for the 2020-21 season because of the losses of revenue due to the COVID-19 pandemic. There are no guararntees that the cap will go up the following season, as the league has to smooth its losses out over multiple years, but if fans can come back sooner rather than later it is possible.

Davis is qualified to get 30 percent of the salary cap, which is $32.7 million, which is obviously more than the $28.7 million he would make next season.

That $4 million could be made up down the stretch, though. Let’s say the cap jumps to $112 million the following season and continues to go up by $3 million every year for the next four or so years (which is possible).

Based on those (very simple) numbers, Davis would get a five-year, $172.5 million contract if he signed now versus five-year, $177 million if he signed the following year.

He makes an extra $750,000 based on our simple numbers, which might not seem worth the risk of not signing this offseason. However, it is worth it for two reasons: A) the cap could grow even faster with the global expansion of the league and b) because it would help the team contend for more championships.

AD can make $750,000+ more and help the team win more championships? That seems like the perfect win-win.

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