Austin Reaves has taken a significant step toward free agency by turning down the Los Angeles Lakers’ offer for a maximum contract extension this week. The Lakers had proposed a deal worth $89.2 million over four seasons, but Reaves declined, aiming for a more lucrative contract during next year’s free agency period.
Reaves is currently entering the third year of his four-year, $54 million contract he signed as a restricted free agent in 2023, which was already the maximum the Lakers could offer at that time. With a player option on the final year of his current deal, Reaves is expected to reject that option to become an unrestricted free agent next summer. This development was reported by Dan Woike of The Athletic on June 26.
Following a breakout season in 2024-25, Reaves’ decision to decline the max extension is not unexpected. It signals that he is positioning himself for a larger contract that would better reflect his rising value. However, this move leaves some uncertainty surrounding his future with the Lakers. If the team believes it cannot fit Reaves’ potential future salary under the salary cap while rebuilding around Luka Doncic, he could become a trade candidate later this summer or before the February trade deadline.
While the Lakers have recently strengthened their financial position through a sale of a majority stake in the franchise—valued at $10 billion—to a wealthy ownership group that also owns the Los Angeles Dodgers, salary cap constraints remain a key factor. The team’s decisions regarding LeBron James’ future contract and the roster overhaul will impact their ability to retain Reaves long term.
“League sources told The Athletic that Reaves formally declined a max extension with the Lakers this week that would’ve paid him $89.2 million over the next four seasons,”
Dan Woike reported.
“He’s about to start the third year of a four-year, $54 million contract he signed as a restricted free agent in 2023 — also the max number he could receive from the Lakers at the time.”
Uncertain Role of Austin Reaves Amid Lakers’ Roster Decisions
Despite the contract uncertainty, the Lakers have continued to value Reaves highly, with no indication of interest in trading him at present. His emergence as an offensive leader has made him a critical part of the team’s core. Still, the looming salary cap challenges and strategic direction could force reassessment of where he fits in next season and beyond.
“Reaves’ upcoming potential free agency meant his name was floating in and out of rumors on the first day of the NBA Draft,”
Woike noted.
“The Lakers have never shown interest in trading Reaves and continue to hold him in high value.”
Reaves’ Fit with Luka Doncic Remains Crucial for Lakers’ Future
A key part of Reaves’ value is how he complements Luka Doncic, the centerpiece of the Lakers’ roster plans. Their on-court chemistry will likely influence the team’s approach to allocating salary cap space and constructing the lineup. As Reaves seeks a bigger contract, his relationship with the star guard could be a decisive factor in the final decision the Lakers make.
The Lakers face a complex balancing act as they prepare for the offseason, juggling player contracts, potential trades, and roster upgrades. Austin Reaves’ contract rejection signals ongoing negotiations ahead and underscores the uncertain financial and strategic landscape for the franchise going into free agency.