Austin Reaves has grown in his role with the Los Angeles Lakers to the position where he deems it best to decline the reported four-year, $89.2 million "max extension."
The Lakers guard is currently on a four-year, $54 million deal.
The small-town boy from Arkansas had been improving consistently, averaging 20.2 points, 5.8 assists, 4.5 rebounds and 1.1 steals last season. He has now become a core member of the team, which includes LeBron James and Luka Doncic.
As such, Reaves is betting on himself to do better next year. After declining the reported offer, he told Dan Woike of The Athletic: “But we didn’t think that the number was the right number. And that’s not saying that we’re gonna go search for a number that’s out of the world."
Reaves' declining the offer has a lot to do with the economics behind the scenes.
The "$153 Million" theory: Why that number matters in Austin Reaves' next contract
As Keith Smith of Spotrac points out, Austin Reaves is likely to decline his $14.9 million player option for 2026-27 and re-sign on a new extension with the Lakers as an unrestricted free agent.
The most the Lakers can currently offer Reaves is a four-year, $87.4 million extension. However, if Reaves turns down his player option to re-sign with the Lakers, he would be eligible for a five-year, $240.7 million contract.
That's a $153 million difference on what he stands to lose if he signs a $87 million extension.
Here's how the potential contract might play out (via Spotrac):
- 2026-27: $41,500,000
- 2027-28: $44,820,000
- 2028-29: $48,140,000
- 2029-30: $51,460,000
- 2030-31: $54,780,000 (player option)
Whether or not the Lakers are comfortable offering Reaves that much remains to be seen. Smith believes a five-year, $147.0 million contract is fairer for both sides.
During his interview with The Athletic, Reaves has already stated his desire to remain in LA and play "Virginia Country Club on off days."
"It’s not like we’re trying to just whack ’em over the head for more money than what I deserve. We just want to get what we feel like I’ve put the work in to get,” Reaves added.
The ball is in the Lakers' court, who might play in the hands of Reaves and give him a contract instead next summer that will take him to his age-32 season.
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