In a move that stunned Lakers fans and NBA insiders alike, Los Angeles Lakers guard Austin Reaves has reportedly declined a four-year maximum contract extension worth a staggering $89.2 million. The decision signals a major gamble by the undrafted Arkansas native—one that may reshape not only his own career trajectory but also the Lakers’ long-term roster strategy as the team eyes a new era following LeBron James’ eventual departure.
Reaves, 26, emerged as one of the Lakers’ most reliable and versatile pieces over the past two seasons, earning praise for his high basketball IQ, fearless shot-making, and elite decision-making under pressure. After going undrafted in 2021, Reaves clawed his way into the league via a two-way contract and quickly exceeded expectations. His gritty, do-it-all style resonated with fans and coaching staff alike, earning him a full-time roster spot and a prominent role in the Lakers’ rotation. By the 2023–24 season, he had become an indispensable part of the team’s backcourt and a regular starter, averaging 15.9 points, 5.5 assists, and 4.3 rebounds per game.
His meteoric rise culminated in a breakout performance during the 2023 playoffs, where he proved capable of producing in high-stakes situations. Reaves’ chemistry with LeBron James, his ability to create off the dribble, and his sharpshooting from beyond the arc made him a vital asset for the Lakers’ title hopes. As the 2025 offseason approached, most expected the Lakers to lock him into a long-term deal. When they reportedly offered the max-allowed four-year, $89.2 million extension under current CBA guidelines, fans assumed the agreement was a formality.
But to the shock of many, Reaves declined.
According to sources close to the situation, Reaves is betting on himself in a significant way. Rather than committing to a long-term extension now, he believes that his value could rise even higher—potentially reaching All-Star levels—if he continues to improve over the next season or two. By declining the extension, Reaves opens the door to becoming an unrestricted free agent when he can command even more lucrative offers, particularly if the salary cap continues to rise.
“He wants to keep his options open,” one league insider noted. “Reaves and his camp believe he has only scratched the surface of his potential. If he plays at the level he expects, that $89 million could look like a bargain.”
Still, the move carries significant risk. The NBA landscape is volatile, with injuries, team performance, and front office changes all impacting a player’s future value. Reaves is taking the road less traveled—eschewing guaranteed wealth for a chance at superstardom and possibly even more money down the line. If he suffers a major injury or sees a dip in production, the financial ramifications could be severe.
The Lakers, for their part, now find themselves in an uncertain position. Reaves’ decision puts pressure on the front office, led by GM Rob Pelinka, to re-evaluate their long-term plans. With LeBron James nearing the twilight of his career and Anthony Davis carrying the mantle as the franchise’s centerpiece, the Lakers had hoped Reaves would be the bridge between the current championship core and the next generation of Lakers stars.
His refusal to commit could force the team to explore other guard options, especially if they fear he may leave in free agency. However, the Lakers still maintain restricted free agent rights over Reaves, which would allow them to match any future offer. That said, the market could change dramatically in the next two seasons, particularly if Reaves plays at or above his current level.
What makes this development even more compelling is the broader context of the NBA’s financial structure. The 2025–26 season could see another significant salary cap jump due to new media rights deals and international expansion revenue. Players across the league are becoming increasingly savvy about timing their contracts to align with these financial shifts. Reaves appears to be taking a page from that playbook, hoping to position himself for a larger deal when the financial pie grows.
While Reaves hasn’t commented publicly on the decision, those close to him suggest he remains committed to the Lakers in the short term and focused on team success. His offseason training has been intense, with videos circulating on social media showing him working on improving his handle, quickness, and three-point range. He reportedly wants to elevate his role to that of a secondary playmaker alongside Davis and whoever the Lakers might bring in via trade or free agency.
Meanwhile, fan reactions have been mixed. On social media, some praised Reaves for believing in himself and aiming high, calling him a “modern NBA success story.” Others expressed disappointment or confusion, worried that he might be pricing himself out of the Lakers’ future or following the path of previous Lakers role players who blossomed elsewhere, such as Alex Caruso and Malik Monk.
“Love AR, but man… turning down nearly $90M is wild,” one fan posted on X (formerly Twitter). “Hope it doesn’t come back to bite him.”
Another fan offered a different perspective: “Smart move by Reaves. The cap’s going up, and he’s only getting better. Get your bag, king.”
From a team perspective, the Lakers are now entering a pivotal summer. With the 2025 NBA Draft and free agency looming, the team has multiple holes to address—particularly in the backcourt and on the wing. Whether Reaves remains the centerpiece of the guard rotation depends not only on his continued development but also on whether the Lakers can construct a roster capable of contending in the ultra-competitive Western Conference.
There’s also the LeBron factor. While James has hinted at retirement in recent offseasons, he continues to play at an elite level and remains a key influence in team decision-making. Reaves and James have developed an on-court chemistry that LeBron has publicly praised, calling Reaves “one of the smartest young players” he’s ever played with. It remains to be seen whether LeBron’s presence—and possible final run at a title in purple and gold—will affect Reaves’ long-term outlook.
Off the court, Reaves has become a fan favorite due to his humble demeanor and underdog story. He has endorsement deals, a growing social media following, and a strong connection with younger fans who see him as a symbol of persistence and grit. That likability may play a role in how the Lakers handle future negotiations, knowing how valuable Reaves is not just to their win column but to their brand.
Ultimately, Reaves’ decision to reject the $89.2 million extension is a bet not just on his skills but on timing, growth, and opportunity. It underscores a growing trend in professional sports, where players are increasingly aware of their leverage and willing to take calculated risks in pursuit of generational wealth and legacy-defining roles.
As the 2025–26 season approaches, all eyes will be on Austin Reaves—whether he can continue his rise, solidify his place among the league’s elite guards, and justify one of the boldest contract decisions in recent Lakers memory. One thing is certain: this story is far from over, and its impact will reverberate throughout the NBA for seasons to come.
