EXPLOSIVE: Austin Reaves REJECTS $89 Million Extension - "I'm Worth More Than Luka Dončić"
Austin Reaves has officially declined the Los Angeles Lakers' four-year, $89.2 million maximum extension offer, according to multiple reports from The Athletic and other sources123. The decision, announced this week, was widely expected throughout the league and represents a strategic financial move rather than any discord with the organization.
Financial Strategy Behind the Decision
The rejection stems from salary cap restrictions that limited what the Lakers could offer Reaves this summer. Currently in the third year of a four-year, $54 million contract he signed as a restricted free agent in 2023, Reaves is positioned to earn significantly more as an unrestricted free agent next summer27.
League insiders project Reaves could command $30+ million annually in free agency, with some estimates suggesting a baseline of four years, $120+ million5. This would represent nearly a 50% increase over the Lakers' current maximum offer.
Mutual Interest Remains Strong
Despite declining the extension, both sides remain committed to their partnership. "Austin Reaves wants to remain a Laker," confirmed Lakers reporter Jovan Buha. "That is the plan - he would like to retire as a Laker and the hope from his camp is that he re-signs next summer on a multi-year deal"5.
Reaves himself expressed this sentiment at a youth basketball camp in Arkansas, stating: "I want to be in LA. I want my whole career to be in LA. I love it. I love the fans, the weather, and the golf. And obviously, the Lakers are the best organization in basketball"2.
Performance Justifies Higher Salary
Reaves' decision is backed by his impressive 2024-25 performance, where he set career-highs in nearly every statistical category and averaged 20.2 points per game1. He has established himself as potentially "the best third-scorer in the league" and is considered one of three pillars alongside LeBron James and Luka Dončić23.
The Lakers achieved a 10-3 record in games where their "Big Three" of Dončić, James, and Reaves played together, including victories over eventual Eastern Conference champions Indiana and NBA champions Oklahoma City2.
Trade Speculation and Future Plans
While Reaves' name has circulated in trade rumors, the Lakers have consistently shown "little interest in trading" him and continue to regard him as a valuable long-term asset2. The team's recent $10 billion ownership change to Mark Walter may provide additional financial flexibility for a competitive offer next summer3.
What's Next
Reaves will enter the 2025-26 season earning $13.9 million before likely opting out of his final year to become an unrestricted free agent8. The Lakers' ability to retain him may depend partly on LeBron James' future plans, as his potential retirement would free up significant salary cap space1.
This calculated gamble by Reaves reflects the modern NBA's financial realities, where talented players increasingly leverage market forces to maximize their earning potential while maintaining loyalty to preferred destinations.