According to Vincent Goodwill of Yahoo Sports, the team wanted to force the coach to take on Kurt Rambis as an assistant, which Lue denied.
He was also only offered a three-year deal when five-year deals have become standard.
It's not like Rambis is inexperienced on sidelines—he has been a head coach for three different organizations and was a Lakers assistant from 1996-2009—but a significant concern could be his relationship with the front office.
The 61-year-old has served as an adviser to the team and has played a "major role" in the hiring process, per Adrian Wojnarowski of ESPN. He and his wife, Linda, were reportedly opposed to hiring Lue after the Buss family signed off on the move, according to Nick Wright of FS1.
The relationship between Rambis and owner Jeanie Buss could potentially make any coach uncomfortable going about their daily activities.
Meanwhile, Wojnarowski and Dave McMenamin of ESPN reported the organization also encouraged Lue to hire Jason Kidd as an assistant.
Considering Lue is an experienced coach with an NBA title on his resume, he clearly didn't feel the need to take the team's suggestions for his staff.