What’s Next for Austin Reaves After Declining Lakers’ $89M Extension?

By Edcel Panganiban June 29, 2025 14:09

Austin Reaves has made a bold and calculated decision by declining the Los Angeles Lakers’ four-year, $89.2 million contract extension offer this offseason. Entering the third year of his current four-year, $54 million deal, Reaves is betting on himself to secure a far more lucrative contract when he hits unrestricted free agency next summer. This move, while expected across the league, sets the stage for a critical offseason for both Reaves and the Lakers as they navigate their future together.

The Context Behind the Decision

Reaves’ decision to turn down the extension is not a sign of discord with the Lakers organization. Sources close to the situation emphasize that the Lakers remain committed to Reaves, viewing him as a foundational piece alongside LeBron James and Luka Dončić. Lakers vice president of basketball operations Rob Pelinka has repeatedly highlighted Reaves as one of the team’s “three pillars” moving forward.

The limitation, however, was financial. The $89.2 million offer represented the maximum the Lakers could extend under their current salary cap restrictions. Reaves, aware that he could command up to 25% of a team’s salary cap as an unrestricted free agent, chose to wait. As Dan Woike of The Athletic explains, “This is a move that was widely expected. Reaves knows he can earn a significantly higher figure next summer, especially with the salary cap projected to rise.”

Reaves’ Rising Stock

The 27-year-old guard has outperformed his current contract by a wide margin. In the 2024-25 season, Reaves posted career highs with 20.2 points, 5.8 assists, and 4.5 rebounds per game, while shooting 37.7% from three-point range and leading the Lakers with 200 made threes. His ability to serve as perhaps the best third scorer in the league has been a cornerstone of the Lakers’ offense, especially after the acquisition of Luka Dončić.

Despite a disappointing playoff run, Reaves’ regular-season performance has solidified his reputation as a versatile, reliable scorer and playmaker. His work ethic and connection with the Lakers fanbase have made him a beloved figure in Los Angeles. “I want to be in L.A.,” Reaves said recently. “I want to play my whole career in L.A. I love it there. I love the fans. Love the weather, love the golf. And obviously the Lakers are the best organization in basketball.”

What This Means for the Lakers

The Lakers face a delicate balancing act. If LeBron James retires or opts out of his contract, the team’s salary cap situation will improve significantly, allowing them to offer Reaves a more substantial max deal next summer. However, if LeBron stays, the Lakers will have to navigate a tighter cap space, which could complicate their ability to keep Reaves long-term.

Despite the uncertainty, the Lakers have no intention of trading Reaves. They value his contributions on and off the court and see him as integral to their championship aspirations. As Woike notes, “The Lakers made the offer understanding Reaves would likely decline, but they wanted to show their commitment.”

Looking Ahead

Reaves’ choice to decline the extension sets up a high-stakes free agency next summer, where he could command a five-year max deal worth upwards of $247 million, depending on the salary cap trajectory. The Lakers will have Bird rights, giving them the ability to match any offer, but the risk of losing him to a rival team exists if they cannot meet his market value.

For now, Reaves is expected to remain with the Lakers for the 2025-26 season, continuing to build his case as one of the league’s premier guards. His decision reflects confidence in his abilities and a desire to maximize his value, while his expressed loyalty to Los Angeles suggests a willingness to find a long-term home with the franchise.

In sum, Austin Reaves’ contract saga is far from over. It represents a pivotal moment for both player and team as they prepare for what could be a defining offseason in Lakers history.