Austin Reaves Reportedly Declined Lakers' 4-Year, $89.2M Max Contract Offer

The Los Angeles Lakers could find themselves in a tricky financial position sooner than later after Austin Reaves recently turned down an extension offer.

Per The Athletic's Dan Woike, Reaves declined the four-year, $89.2 million max offer that he is eligible to sign this summer.

Woike did note this isn't an indication of any strain in the relationship between the two sides, but rather "a foregone conclusion considering the limitations placed on the amount the Lakers were allowed to offer this week."

Reaves is entering the third season of his four-year, $53.8 million contract signed in July 2023. He has a $14.9 million player option for the 2026-27 season in that deal.

It wouldn't seem like a hard decision for Reaves to reject the Lakers' current offer because he could earn significantly more by waiting. If he turns down his option to become a free agent next summer, he could sign a new deal with a first-year salary of $42.5 million.

If Reaves signs for the maximum amount he could get in an extension next summer, that could complicate things for the Lakers. Luka Dončić is also eligible for an extension, but there are various different scenarios he could go with to maximize his earnings since he's not eligible for a supermax deal after being traded by the Dallas Mavericks.

Dončić's long-term happiness is the most important thing for the Lakers, but Reaves has made himself an essential player for the organization going forward. They also need a long-term running mate next to Dončić because LeBron James, who will turn 41 on Dec. 30, presumably won't keep playing that much longer.

One piece of good news for the Lakers is Reaves doesn't have to get the full $42.5 million salary he would be eligible for to get a raise and stay in Los Angeles. B/R's Eric Pincus floated the idea of a starting salary around $30 million.

Even though that would be leaving a lot of money on the table, Reaves would still earn more both in average annual salary and total value with a deal that starts at $30 million than if he signed the four-year, $89.2 million contract.

It would also give the Lakers more flexibility going forward to fill out their roster around Dončić. Reaves has said in no uncertain terms he wants to spend his entire career in Los Angeles, so it doesn't seem like he wants to ruffle any feathers in his contract talks.

An undrafted free agent in 2021, Reaves is one of the Lakers' best developmental success stories. The 27-year-old became a full-time starter midway through the 2023-24 season. He set career-highs in scoring average (20.2), rebounds (5.8) and steals (1.1) in 73 starts this season.