BREAKING: Austin Reaves Turns Down $90 Million Max Extension From Lakers, Betting on Bigger Free Agency Payday in 2025

The future of Los Angeles Lakers guard Austin Reaves took a dramatic turn this week as the sharpshooting guard officially declined a four-year, $90 million max contract extension offer from the franchise, league sources confirmed Thursday morning. With this move, Reaves signals his intent to explore unrestricted free agency in the summer of 2025, where he believes his market value will exceed what the Lakers were willing to commit now.

Reaves, who has rapidly evolved from an undrafted rookie to a key contributor in Los Angeles, has been one of the few bright spots in a Lakers team mired in postseason inconsistencies and roster uncertainty over the past two seasons. His decision to reject the lucrative offer showcases both his rising confidence as a player and his belief that the open market will provide more substantial offers once his current contract expires.

The reported extension offer, worth approximately $90 million over four seasons, represented the highest financial commitment the Lakers could make under the current Collective Bargaining Agreement regarding Reaves. However, Reaves and his representatives believe that continued development, combined with the rapidly inflating player market and a projected increase in the NBA salary cap, could position him to earn significantly more when free agency opens next year.

League insiders suggest that Reaves’ camp is betting on multiple factors aligning in his favor. First, the NBA’s salary cap is expected to rise notably in 2025, driven by the new media rights deal and increased league revenues. Second, the scarcity of high-efficiency guards with Reaves’ versatility and shooting ability on the free agent market could fuel a bidding war among contenders and rebuilding teams alike.

The 26-year-old guard averaged 16.7 points, 4.5 assists, and 3.9 rebounds per game last season while shooting an impressive 39.8 percent from beyond the arc. His ability to play both guard positions, initiate offense, and stretch the floor has made him indispensable to the Lakers, especially alongside stars like LeBron James and Anthony Davis. His development into a reliable playmaker and tough shot-maker in clutch situations has elevated his status from role player to one of the team’s foundational pieces.

Despite that, Reaves’ decision to decline the extension puts the Lakers in a precarious position. The franchise now faces the possibility of losing a key young player for nothing in return next summer. The Lakers have historically struggled to retain homegrown talent, and Reaves’ potential departure could mirror past situations where valuable contributors left via free agency, forcing Los Angeles into reactive roster moves.

General Manager Rob Pelinka and the Lakers’ front office are now under increased pressure to map out a strategy to either convince Reaves to re-sign next summer or explore trade possibilities before the deadline if it becomes clear he has no intention of returning. Given Reaves’ value around the league, it is unlikely the Lakers would allow him to leave without exhausting all options to retain or gain assets in return.

For now, the organization appears intent on keeping Reaves in purple and gold for the upcoming season, hoping to make another deep playoff run. However, the rejection of the extension clouds what had been seen as an increasingly stable core centered around LeBron James, Anthony Davis, and Reaves.

Sources close to Reaves indicate that his desire to test the market is not rooted in dissatisfaction with the Lakers organization but rather a calculated business decision based on market projections. The guard is reportedly seeking a deal that could eclipse $25 million annually, a figure that could be attainable for a player with his upward trajectory, especially if he has another productive season.

Reaves’ journey to this moment has been anything but conventional. After going undrafted in 2021, the Arkansas native signed a two-way contract with the Lakers, quickly impressing with his gritty play, basketball IQ, and scoring touch. Within a year, he earned a standard NBA contract and steadily increased his production, eventually cementing himself as a starter and key piece in the Lakers’ rotation.

His breakout performance in the 2023 Western Conference Playoffs, where he averaged over 16 points per game and displayed poise beyond his years, elevated his profile league-wide. Since then, Reaves has become a fan favorite in Los Angeles, with his jersey sales and popularity surging, further adding to his market appeal.

While the Lakers can still offer Reaves a new contract next offseason, they will face stiff competition. Several teams with significant cap space are expected to pursue Reaves aggressively, seeing him as both a cultural fit and a player entering his prime. Franchises in need of a high-IQ, two-way guard capable of contributing immediately will likely line up for his services.

Analysts have pointed to teams like the Orlando Magic, San Antonio Spurs, and Detroit Pistons—each armed with cap space and in various stages of building competitive rosters—as potential suitors for Reaves. His ability to complement star players, as demonstrated alongside LeBron James and Anthony Davis, makes him an ideal target for teams with emerging cores or playoff aspirations.

For the Lakers, retaining Reaves remains a high priority, but doing so will come at an elevated price next summer. The decision also adds urgency to Los Angeles’ broader team-building plans. With LeBron James nearing the twilight of his career and Anthony Davis battling ongoing health concerns, keeping young, ascending talent like Reaves is critical for sustaining competitiveness in the Western Conference.

There is also speculation about how this development could impact LeBron James’ future with the Lakers. James, who has publicly praised Reaves on multiple occasions for his work ethic and basketball IQ, has been vocal about the importance of surrounding himself with capable, reliable players. If Reaves’ potential exit becomes more likely, it could influence James’ own decisions regarding his contract and long-term future in Los Angeles.

At the same time, Reaves’ camp is fully aware of the risks associated with declining such a significant financial guarantee. A down year, injury, or regression in production could diminish his market value, potentially making the Lakers’ current offer the most lucrative he will see. Nevertheless, the decision to bet on himself underscores Reaves’ confidence in his abilities and his belief that he has not yet reached his peak value.

The Lakers, for their part, have refrained from making public statements about the contract negotiations, adhering to organizational norms regarding player discussions. Behind the scenes, however, sources indicate the franchise is prepared to engage in continued dialogue with Reaves throughout the season, keeping lines of communication open in hopes of ultimately securing his services long-term.

Reaves’ gamble is emblematic of the modern NBA, where player empowerment, financial strategy, and long-term planning intersect. His decision to reject the max extension reflects both personal ambition and calculated risk-taking that could yield substantial rewards—or unforeseen challenges—depending on how the upcoming season unfolds.

In the coming months, all eyes will be on Reaves as he enters what may be his most scrutinized season yet. Every performance, injury report, and Lakers win-loss streak will be analyzed not only through the lens of championship aspirations but also through the broader narrative of Reaves’ impending free agency.

Should he replicate or exceed his production from last season, Reaves will enter the 2025 free agency market as one of the most sought-after guards available, armed with leverage, options, and the potential for a contract that surpasses the Lakers’ most recent $90 million offer.

For now, Austin Reaves remains a Laker—but the clock is ticking, and the future is as uncertain as ever for one of Los Angeles’ most intriguing young stars.