Los Angeles Lakers: Breaking down Anthony Davis contract extension

LAKE BUENA VISTA, FLORIDA - OCTOBER 02: Alex Caruso #4 of the Los Angeles Lakers reacts with Anthony Davis #3 during the second half against the Miami Heat in Game Two of the 2020 NBA Finals at AdventHealth Arena at ESPN Wide World Of Sports Complex on October 02, 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 Douglas P. DeFelice/Getty Images)
LAKE BUENA VISTA, FLORIDA - OCTOBER 02: Alex Caruso #4 of the Los Angeles Lakers reacts with Anthony Davis #3 during the second half against the Miami Heat in Game Two of the 2020 NBA Finals at AdventHealth Arena at ESPN Wide World Of Sports Complex on October 02, 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 Douglas P. DeFelice/Getty Images) /
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Los Angeles Lakers
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Five-years $190 million

The terms of the deal are five-years and $190 million. The fifth-year has a early termination option, which allows AD to opt-out. Five years down the line is too far to predict what he might do.

But what this deal does is align with James being under contract for three years. So their star duo will be under contract until at least 2022-23. Then Davis will have 2023-24 before deciding to opt into year five.

The deal averages $38 million per year and allows Davis to enter free agency again if he outplays this contract after four years. If he does not then he will have the option to take approximately $41 million in year five by opting in.

The deal will take him into year 12 of his career. He would’ve been eligible for 35% of the cap at year 10, but that didn’t seem to be a priority in the end. Davis secures his future with the deal and the Lakers now can build around him knowing they won’t do this again for at least four years.

Davis and LeBron probably kept close contact with each other and what each would do. Ultimately both will be here long-term as expected.