Austin Reaves finds himself at a crossroads with the Los Angeles Lakers, and the situation is getting messy. After turning down a four-year, $89.2 million extension and with trade rumors swirling, the undrafted guard who worked his way into the Lakers’ starting lineup faces the biggest decision of his career. The clock is ticking, and both sides are playing a high-stakes game of chicken that could reshape the Lakers’ future.
Why Did Austin Reaves Turn Down $89 Million Offer From the Lakers?
The contract standoff reveals everything you need to know about Reaves’ confidence in his value. After helping the Lakers secure a top-three record in the West during the 2024-25 season, Reaves believes he’s worth more than the roughly $22 million per year Los Angeles offered.
His playoff performance against the Minnesota Timberwolves wasn’t spectacular. He averaged 16.2 points, 5.4 rebounds, and 3.6 assists in the first-round loss to Anthony Edwards and company. However, Reaves has been one of the Lakers’ most consistent performers over the past few seasons, establishing himself as a reliable scorer in their backcourt alongside established stars.
The timing of LeBron James opting into the final year of his contract adds another wrinkle to Reaves’ decision. If James leaves after next season, the Lakers would have significantly more salary cap space to offer Reaves a more lucrative deal. That potential scenario makes waiting out his current contract an attractive gamble.
Meanwhile, Reaves still has two years remaining on his four-year contract worth $53,827,872, giving him leverage in negotiations. He won’t become an unrestricted free agent until the summer of 2026, but the expectation is he’ll decline his $14,898,786 player option next summer to test the market earlier.
What Are the Lakers’ Options if Negotiations Fail?
According to senior NBA analyst Jake Weinbach, the Lakers are seriously considering trading Reaves if contract talks remain stalled. The reasoning is simple: losing him for nothing as a free agent would be a devastating blow to the franchise.
Austin Reaves’ situation with the Lakers is one to monitor across the league.
Reaves reportedly declined a four-year, $89.2M extension from the Lakers last month and is widely expected to decline his $14.8M player option next summer to become an unrestricted free agent.
If the…
— Jake Weinbach (@JWeinbachNBA) July 20, 2025
Weinbach noted, “If the two sides are far apart on extension talks, the Lakers may shop the value of the 27-year-old guard to avoid the possibility of losing him for nothing once 2026 free agency comes around.”
This creates a fascinating dilemma for Lakers management. Do they stick to their current offer of approximately $90 million over four years, or do they cut their losses and trade a player who has become integral to their success? The organization clearly values Reaves, giving him opportunities despite his undrafted status, but they may not be willing to pay him around $30 million annually.
The relationship between Reaves and the Lakers should theoretically be strong. The franchise took a chance on an undrafted player, and he repaid that faith by becoming one of their top scorers. He’s held down the backcourt effectively and shown the consistency that championship teams need.
However, contract negotiations can strain even the best relationships. If both sides remain firm in their positions, a trade might become the most logical solution for everyone involved. The Lakers would receive assets in return rather than watching Reaves walk away for free, while he would get a fresh start with a team potentially more willing to meet his salary demands.
Reaves’ performance during the 2025-26 season will likely determine his ultimate fate with the historic franchise.
