Austin Reaves is a heartwarming story of an undrafted player who worked his way up the Los Angeles Lakers organization to the status of rising star in the NBA. That ascent will prove costly for Rob Pelinka and the Lakers.
Reaves is entering the last guaranteed year of his team-friendly contract in the 2025-26 season. The Lakers guard is set to make $13.9 million next year before a player option in the 2026-27 campaign for $14.9 million. The optimal financial decision for Reaves would be to decline that option.
With the stock of the soon-to-be 27-year-old soaring, it is important for the Lakers to figure out what the next step is with him. Does Los Angeles get ready to pay the talented offensive guard? Or, would it be wiser to sell high on Reaves while his value is close to its peak?
The Austin Reaves dilemma
Dave McMenamin of ESPN noted the best extension Reaves could receive this offseason would be a four-year, $89.2 million deal, replacing the player option in 2026-27. However, there is also a much more lucrative path for the fourth-year pro.
McMenamin wrote, "He could also wait until the summer of 2026 when he'd be eligible for a four-year, $98 million extension, or opt out of the final year of his contract, become an unrestricted free agent and be eligible for 25% of whatever the salary cap is set at for 2026-27."
Reaves has undoubtedly proven himself worthy of a healthy pay day. Even after a disappointing playoff series against the Minnesota Timberwolves, the talent and further upside is clearly there and undeniable. The Lakers guard proved himself as one of the top tier third options in the NBA this season.
However, things are not as simple as just asking Reaves 'how much' and letting him sign on the dotted line. There are reasons to question whether his future is in Los Angeles.
Jovan Buha of The Athletic wrote: "The Lakers are optimistic ... and instead would like to continue to build and grow around their core trio of [Luka] Doncic, [LeBron] James and Reaves. ... [Reaves'] ascension this season appears to have cemented his status as part of their core."
The main questions come with regard to the ceiling of that trio. In particular, the focus goes to the defensive end. The Timberwolves were able to exploit switches onto Doncic and Reaves in their first-round matchup. Does adding a rim-protecting center this offseason alleviate those concerns of subpar perimeter defense enough for the Lakers?
The additional backend support could allow the Lakers to shift away from a switch-heavy defensive unit and grant them the ability to attempt to hide Doncic and Reaves more often on that end.
However, when both of those players are so important to your offensive success, there will still be a large chunk of minutes, in particular overlapping ones, when both men will be on the court for extended stretches together. The expression for that would be 'flirting with disaster.'
In all fairness to Reaves, the effort is certainly there for him on the defensive end. Despite that intensity, the lackluster results remain all the same.
In the scenario where the Lakers end up paying 25% of the cap to Reaves as a free agent, that would be a sizeable financial commitment. It would effectively tie up the cap around him and Doncic as the leading duo, with the prognosis that James could be eyeing retirement around that point. The conversation and questions then become what the ceiling of that duo is.
The elephant in the room in room is the question of whether it is best to trade Reaves when his value is still near the high of where it would be. Naturally, this would only come in a situation where the deal serves the Lakers extremely well. However, if there is an opportunity to turn Reaves into a high-end player or two, who fit better with the future timeline around Doncic, it bears consideration.
There is no easy answer to what the right move is here. Regardless, this will undoubtedly be a decision that ultimately defines the Lakers' near future.