On Saturday, Luka Doncic and the LA Lakers finalized a three-year maximum extension that will pay the five-time All-Star $165 million over three years. Although the move was a major one for LA, the team technically could have signed Doncic to a four-year deal instead, which would have paid him an additional $64 million.The reason for this is that by signing for three years, Doncic will be free to sign a supermax contract in 2028, 10 years after he entered the league. While this results in a $64 million loss over the next three years, when the Slovenian star signs his over $400 million supermax deal in 2028, he will more than recoup the loss.Per the terms of his new three-year extension, Doncic has a player option for 2028.Looking at the estimated year-by-year breakdown of Luka Doncic's extensionHeading into the 2025-26 season, Doncic is still on the final year ($45.9 million) of his five-year contract that was originally signed with Dallas.Beginning with the 2026-27 season, Doncic will be playing under his new $165 million extension.Spotrac estimates the contract breakdown as follows:2026-27: $49.6M2027-28: $53.6M2028-29*: $57.5MNote: * Indicates player option.Shams Charania breaks down Doncic's $165M extensionSaturday's news of Luka Doncic's contract extension with the LA Lakers was broken by NBA insider Shams Charania.During an appearance on "SportsCenter" on Saturday, Charania spoke about the contract, explaining the significance of the deal and the LA front office's ability to get the five-time All-Star to commit to LA."He was set to be a free agent next offseason, but he commits to a three-year extension now," Charania said. "And this is six months to the day that he was traded in February. ... It's been an emotional last six months, but he commits now to the Lakers through the next three years."Jeanie Buss, Rob Pelinka, the new owner, Mark Walter, they built a close rapport with Luka Doncic and his inner circle to get him to commit here. And now, Luka Doncic, he's going to be the face of this Lakers organization moving forward."Looking at the Lakers' 2026-27 salary cap table following Luka Doncic's extensionWith Doncic's contract now on the books starting in the 2026-27 season, LA's salary cap table for the season is as follows:Luka Doncic: $49.6MAustin Reaves*: $14.8MJarred Vanderbilt: $12.4MDeandre Ayton: $8.1MJake LaRavia: $6MMarcus Smart*: $5.3MDalton Knecht**: $4.2MBronny James***: $2.2MAdou Thiero: $2.1MNote: * Indicates player option, ** indicates team option, *** indicates non-guaranteed.This will leave LA with an estimated $104.5 million to spend within the first apron per Spotrac.