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Austin Reaves Makes Final Decision on Contract Extension With Lakers

Originally posted on Athlon Sports | By Max Dible | Last updated Jun 26, 2025 12:30 PM ET

The Los Angeles Lakers haven't lost guard Austin Reaves, but the offensive dynamo just took a major step toward free agency.

Los Angeles offered Reaves the maximum extension allowable by league rules, which he turned down with an eye toward a significantly bigger payday one year from now. Dan Woike of The Athletic reported the news on Thursday, June 26.

"League sources told The Athletic that Reaves formally declined a max extension with the Lakers this week that would’ve paid him $89.2 million over the next four seasons," Woike wrote. "He’s about to start the third year of a four-year, $54 million contract he signed as a restricted free agent in 2023 — also the max number he could receive from the Lakers at the time."

The move on Reaves' part doesn't come as a particularly big surprise after he put up a career year in 2024-25. He holds a player option on the fourth and final year of his current deal next summer, which he will now certainly decline before entering into unrestricted free agency.

Reaves could potentially become a candidate for the trade block either later this summer or ahead of the February deadline if the Lakers don't believe they will be able to afford him in the future.

That won't be an issue because of the franchise's finances after the Buss family sold a majority stake in the franchise at a valuation of $10 billion to one of the richest ownership groups in sports, which also operates the Los Angeles Dodgers. However, salary cap issues could present a problem based on how much the Lakers spend reconstructing the roster around Luka Doncic over the next year.

LeBron James' future with the team is also an expensive question that will demand an answer ahead of any decision on Reaves.

"Reaves’ upcoming potential free agency meant his name was floating in and out of rumors on the first day of the NBA Draft," Woike continued. "The Lakers have never shown interest in trading Reaves and continue to hold him in high value."

This article first appeared on Athlon Sports and was syndicated with permission.

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