Austin Reaves turns down $89 million from Lakers to aim higher

The Los Angeles Lakers will have to wait to secure Austin Reaves‘s future. The 27-year-old guard has officially declined the four-year, $89.2 million contract extension offer proposed by the California franchise this summer.

« Why settle? » 🤷‍♂️@RightSideVP and @JoeRaineri react to Austin Reaves declining a four-year, $90M max extension offer from the #Lakers…#LakeShow #LALakers #NBAX pic.twitter.com/lTsRXG2dvJ

— SportsGrid (@SportsGrid) June 27, 2025

According to Dan Woike of The Athletic, this decision reflects no tension between the two parties, but rather « a predictable conclusion given the limitations on how much the Lakers were allowed to offer this week. »

A profitable financial strategy for the former Oklahoma player

Reaves, entering the third season of his current four-year, $53.8 million contract signed in July 2023, has a player option worth $14.9 million for the 2026-2027 season. His decision to decline the current offer makes sense from a financial perspective.

By becoming a free agent next summer, the former Oklahoma university player could command a first-year salary of $42.5 million. He will even be eligible for a maximum contract of $247 million over five years, a considerably higher amount than the Lakers’ current offer.

This season, Reaves has set personal records averaging 20.2 points (49% shooting including 37% from 3-point range), 5.8 rebounds, and 4.3 assists in 73 starts. Becoming a full-time starter in mid-2023-2024, this former undrafted player in 2021 represents one of the Lakers’ greatest player development successes.

Eric Pincus of Bleacher Report suggests the possibility of a compromise with a starting salary around $30 million. This would allow the Lakers to maintain more financial flexibility while offering Reaves a substantial increase from his current contract.

Reaves has clearly expressed his desire to spend his entire career in Los Angeles, suggesting future negotiations. Even though the Lakers will likely have to spend much more than their initial offer of $89.2 million.