In what can only be described as a bold move during an already intriguing offseason, Los Angeles Lakers guard Austin Reaves has reportedly declined a four-year, \$150 million maximum contract extension offered by the franchise. This decision, which has rapidly gained traction across league circles and social media platforms alike, appears to signal that Reaves is preparing to test free agency next summer. Sources close to the situation indicate that Reaves is holding out for a five-year max deal that could climb as high as \$200 million, believing his value to the team—and potentially to other suitors—justifies the higher investment both in duration and total value.
For the Lakers, this development introduces an unexpected wrinkle in their offseason planning. While most of the attention has been focused on the continued partnership with LeBron James and retooling the roster around Anthony Davis, Reaves has quietly emerged as a cornerstone piece. His blend of shot creation, perimeter defense, high basketball IQ, and fearlessness in big moments has endeared him to Lakers fans and earned respect league-wide. After breaking out during the 2023 postseason, Reaves cemented his reputation as more than just a fan favorite or underdog story; he proved to be a legitimate third option on a team with championship aspirations.
From a purely statistical and impact standpoint, Reaves’ trajectory has been nothing short of meteoric. Coming into the league undrafted out of Oklahoma, he signed a two-way deal and worked his way into the rotation. By his second season, he was starting games for the Lakers and consistently closing tight contests. During the 2023-24 season, he averaged career highs in points, assists, and shooting percentages across the board, including an impressive 39% from three-point range and nearly 50% from the field overall. Those numbers—combined with his knack for drawing fouls, orchestrating pick-and-rolls, and guarding top perimeter threats—have made him an indispensable member of the roster.
However, the Lakers’ front office now faces a difficult challenge. They must decide how far they’re willing to go to retain Reaves long-term. The four-year, \$150 million offer on the table is already a considerable commitment—one that recognizes Reaves’ contributions but also tries to maintain financial flexibility as LeBron James enters the twilight of his career. By turning down the offer, Reaves is not only betting on himself but also putting pressure on the Lakers to either meet his five-year demands or risk losing him to a rival next summer.
In the NBA, contract negotiations often double as games of leverage, and Reaves appears to be playing his hand confidently. The Lakers currently own his Bird Rights, which gives them the ability to exceed the cap to re-sign him. But that won’t matter if he enters unrestricted free agency with his mind set on a specific price point or if he finds another team willing to offer the full five-year max he seeks. There are several teams projected to have cap space in the 2025 offseason, and it’s not hard to imagine franchises with young cores or lacking in shot creators circling Reaves as a target.
The implications of potentially losing Reaves go beyond the court. He has become a fan favorite, drawing MVP chants at the free-throw line and forming strong on-court chemistry with LeBron James and Anthony Davis. In many ways, Reaves represents the kind of homegrown success story that elite franchises struggle to develop consistently. Letting him walk, or creating a toxic standoff in contract talks, could erode trust within the locker room and send the wrong message about how the Lakers treat their own.
From Reaves’ perspective, seeking a five-year deal makes practical and professional sense. In the modern NBA, where contracts are both shorter and heavily scrutinized, security matters. A five-year deal not only guarantees an extra year of salary but also protects against injury risk and gives the player more long-term leverage. Furthermore, if he continues to improve—or even just maintain his current level of performance—a five-year, \$200 million contract could prove to be a bargain two or three years into its lifespan.
Reaves’ decision also comes at a time when the NBA’s new collective bargaining agreement (CBA) has placed a higher premium on cost-controlled, versatile players who can fit into multiple lineups. His ability to be effective both on and off the ball, his willingness to take on defensive assignments, and his playoff experience all make him a high-value commodity in today’s league. Teams are more willing than ever to invest in two-way guards who don’t require high usage but can take over stretches of games when necessary. Reaves fits that mold to perfection.
This situation also forces the Lakers to evaluate their long-term roster construction more carefully. If LeBron James retires or leaves the team within the next year or two, the Lakers may need a new foundational trio built around Davis and another max-caliber player. Reaves, at only 26, fits the timeline to be part of a post-LeBron Lakers squad. But that will only happen if the team is willing to lock him in with the kind of contract he feels he has earned.
There’s also the matter of perception and precedent. In recent years, the Lakers have had a mixed record when it comes to retaining promising talent. Players like Alex Caruso and Malik Monk left the team after blossoming in purple and gold, often citing contract issues as the primary reason. The Lakers have historically preferred to maintain cap flexibility, often aiming for superstar free agents or trades, but that approach can sometimes lead to losing key contributors who develop within the organization. Letting Reaves go the same way would send a signal that the team has not fully learned from past missteps.
There’s no denying that \$200 million is a massive investment, particularly for a player who was undrafted just a few seasons ago. But this is the new NBA reality. Rising TV revenues, skyrocketing franchise valuations, and an evolving salary cap have created an environment where high-end role players can command elite salaries. For a team like the Lakers, with championship ambitions and constant media scrutiny, overpaying slightly to retain continuity and cohesion might be worth the cost.
The next few months will be telling. If the Lakers and Reaves’ camp cannot come to a compromise before the 2025 offseason, the situation could become increasingly complex. Other teams will be watching closely. A sign-and-trade scenario is also not out of the question if the Lakers are unwilling to match a five-year max but want to avoid losing Reaves for nothing. Alternatively, the Lakers could ultimately relent and offer the full deal, securing Reaves for the foreseeable future while hoping his play continues to justify the cost.
Until then, Reaves will enter the 2024-25 season with much to prove. Playing with the pressure of a looming contract year can be daunting, but if anyone has shown an ability to defy expectations and thrive under scrutiny, it’s Austin Reaves. Whether he ultimately stays in Los Angeles or finds a new home next summer, one thing is certain: he has officially entered the upper echelon of NBA players who dictate their own futures. His refusal to settle for less than what he believes he deserves isn’t just a business decision—it’s a statement of self-worth and ambition.
And for the Lakers, the message is clear: if you want to keep Austin Reaves, the price just went up.
