Austin Reaves’ decision to decline an $89.2 million extension with the Los Angeles Lakers has sent shockwaves through the NBA, sparking discussions about player value, team strategy, and the evolving dynamics of contract negotiations in the modern league. This move, while financially audacious, is rooted in a calculated bet on Reaves’ future potential and the Lakers’ long-term plans. To fully grasp the implications, it’s essential to dissect the motivations behind Reaves’ decision, the impact on the Lakers’ roster management, and the broader market for his services.
The Gravity of Reaves’ Decision
Austin Reaves’ journey from an undrafted free agent to a key starter for the Lakers is a testament to his resilience and skill. His initial two-way contract and subsequent four-year, $53.8 million deal in 2023 were already seen as a testament to his value. However, his decision to decline a maximum extension is a bold statement about his confidence in his future earnings potential. Reaves’ performance—averaging around 15 points, 5 assists, and 4 rebounds per game last season—positions him as a versatile guard who can contribute on both ends of the floor. His ability to shoot efficiently from the perimeter, facilitate offense, and defend multiple positions makes him a coveted asset in today’s NBA.
By turning down the extension, Reaves is essentially betting on himself to command an even higher salary in unrestricted free agency in 2025. This move is not just about the money; it’s about leveraging his current performance to secure a more lucrative deal in the future. The risk is significant—an injury or a decline in performance could diminish his market value. However, if he continues to improve, he could be looking at offers well above $100 million, potentially even approaching $30 million per year, depending on the league’s salary cap projections and his development.
Understanding the Why
Reaves’ decision is a shrewd business move, rooted in the current Collective Bargaining Agreement (CBA) stipulations. Under the current rules, the Lakers could offer him a maximum extension of four years at $89.2 million. However, by entering unrestricted free agency in 2025, Reaves could potentially secure a higher offer from another team with more cap space. The NBA salary cap has been steadily rising, and projections for 2025 suggest that teams with available cap space could offer significantly more than the Lakers’ current extension.
By declining the extension, Reaves is essentially playing the long game. He is betting on his continued growth and the potential for a higher salary cap in the future. This strategy is not without risk, as injuries or a decline in performance could limit his earning potential. However, the upside is substantial. If Reaves continues to perform at a high level, he could secure a contract that far exceeds the $89.2 million offer he declined.
Impact on the Lakers and Their Strategy
For the Lakers, Reaves’ decision presents both opportunities and challenges. On one hand, his current contract—$13.5 million for the 2024-25 season and $14.9 million for the 2025-26 season—is highly attractive relative to his value. The Lakers get a starting-level guard for role-player money, which provides them with financial flexibility to build around LeBron James and Anthony Davis.
However, the challenge emerges after 2025. Reaves’ decision to decline his player option makes him an unrestricted free agent, capable of walking away for nothing, similar to what happened with Alex Caruso and Malik Monk. The Lakers now find themselves in a delicate position: they must balance the need to contend during the LeBron and AD window with the potential to lose Reaves for nothing in free agency.
If the Lakers falter in the interim—missing the playoffs, experiencing front office turmoil—their status as a Reaves destination isn’t guaranteed. There’s already speculation about what he could be worth elsewhere, and no shortage of teams with cap space in 2025. The Lakers’ front office and vocal fanbase now watch Reaves not just as a player, but as a litmus test for their broader roster management.
The Market for Austin Reaves
In a league always thirsty for switchable, skilled guards, Reaves’ combination of shot creation, shooting efficiency, and positional versatility will command a premium. Teams that miss out on marquee free agents often pivot to the “next tier” of stars, and Reaves fits as a primary or secondary option for franchises with cap space in 2025.
At 26, Reaves will hit the market right in his prime. High-profile playoff runs, solid statistical output, and improving defense position him as the kind of two-way guard teams believe can thrive in bigger roles. If he makes another leap—All-Star buzz, improved three-point percentage, leadership moments on national TV—the price only keeps climbing.
Comparisons are easy: look at recent deals for players like Tyler Herro, Jordan Poole, or even Fred VanVleet. Contracts north of $20–$30 million per year have become the new normal for elite supporting guards. Unless the bottom falls out, Reaves is easily in that class, and, arguably, with a more translatable game to high-stakes basketball.
Why Not Just Trade Him Now?
The Lakers have reason to keep Reaves for the next two years—the contract is too good, and the hope is they contend during the LeBron/AD window. But if the team dips from contender status, trade rumors will swirl. Packaging him for a disgruntled star or future picks is tempting, especially with leverage slipping away the longer he sits unsigned.
Teams looking to add talent at a discount might make aggressive offers. Of course, the optics of giving up a beloved, homegrown guard right as he’s entering his prime could backfire with fans and the locker room. For now, Lakers execs will likely let things play out, trusting in culture and results, but that leash gets shorter with every .500 stretch or early playoff exit.
Franchise Optics: Loyalty Versus Negotiation
There’s a persistent myth in NBA circles about undrafted overachievers “owing” their franchise for believing in them. In reality, contracts are business, not sentiment. Reaves’ move is a reminder: those sentimental storylines stop at the negotiation table. If he can command more—whether that’s salary, role, or team ambitions—he’s playing the same leverage game that GMs use every day.
The Lakers, as a “name brand” team, always assume they can reel back in their own talent. But as Caruso and Monk have shown, that isn’t a given. Both left for more money and defined roles elsewhere. If Reaves follows suit, it underscores a growing trend: organizational loyalty carries less weight when the financial gap is substantial, and the sport’s landscape is wide open.
The Fan Perspective: Fear and Frustration
Fan reaction is already palpable. Social media pulses with angst—calls for the front office to “lock up” young stars, worries about repeating past mistakes. There’s also resignation: Lakers fans have seen this movie before, where homegrown talent is prized until business steps in.
Still, most recognize Reaves’ logic. Betting on oneself is part of the athlete’s ethos. If his ceiling isn’t fully reached yet, why lock in for below-market money? Unless the Lakers contend deep into the playoffs or give him a bigger spotlight, there’s little incentive for an early extension.
What Comes Next
Reaves will start the season as a focal point of ongoing Lakers storylines. Every strong performance ups his value and TMZ quotient. The trade deadline brings extra scrutiny; if the Lakers underachieve, “Austin Reaves trade buzz” will dominate every talking head segment.
Unless there’s a seismic organizational shift or a player-for-player blockbuster, odds are Reaves plays out his deal. In the background, his camp will monitor the league’s salary cap projections, young teams flush with cash, and the constant churn of NBA free agency.
A New Normal in NBA Contract Strategy
Reaves’ refusal isn’t about greed or disrespect. It’s a modern playbook move: hold out for maximum market value, use current contracts as stepping stones, not handcuffs, and remind teams that in a league built on movement and leverage, no one’s future is truly settled until pen meets paper.
Final Thoughts: Betting On Yourself, Lakers at the Crossroads
Turning down nearly $90 million is no small wager, but it’s a bet on Austin Reaves’ trajectory, both as a player and as a businessman. If he keeps producing, he’s set up for an even bigger payday and a starring role with the Lakers or a new franchise seeking backcourt help.
For the Lakers, this moment is a microcosm of the challenges facing star-driven franchises: keep chasing big names, or nurture and reward elite role players before they leave for greener pastures. The Reaves drama will echo through Staples Center and front offices across the league, posing the eternal question: can you keep everyone happy—and paid—while chasing banners? The clock is ticking.
