Anthony Davis reportedly planning to opt out, re-sign with Lakers

Anthony Davis is planning to opt out of the final year of his contract with the Los Angeles Lakers, but it does not sound like the seven-time All-Star intends to test free agency.

Davis will not exercise his $28.7 million player option for 2020-21 but is planning to re-sign with the Lakers, Shams Charania of The Athletic reports. He and his agent, Rich Paul, will meet in the coming weeks to discuss which contract makes sense, as Davis has a number of options.

Davis is eligible to sign a five-year max contract with the Lakers that would be worth around $200 million, but it seems unlikely he will go that route. Instead, he could sign a two-year deal at roughly $68 million with a player option for the second year. Davis could also sign a three-year deal at the same average annual salary with a player option for the third year. That scenario may appeal to him the most.

If Davis signs a two-plus-one contract and opts out after two years, he would then enter free agency in 2022 with 10 years of service. That would make him eligible to sign a contract worth 35 percent of the salary cap. Based on current projections, Charania says Davis could sign a five-year deal worth more than $250 million at that point.

There are really no bad options for Davis. A long-term deal is always the safest bet, but he can only increase his earning potential by signing shorter contracts and waiting a while longer to cash in. LeBron James, who is also a Paul client, has taken that approach throughout his career.

It seemed at one point like the pandemic might impact Davis’ contract situation, but that is not going to be a factor.