The Los Angeles Lakers are inching closer to a decision that will determine their trajectory: Extend Austin Reaves now or potentially face a significantly higher price point in 2026. It's a decision that certainly isn't theirs to make on their own, as Reaves can decline any offer he receives.
The way the Lakers handle upcoming extension negotiations, however, will go a long way toward shaping the Luka Doncic era.
2025-26 could be the final season that Reaves plays in Los Angeles on his current contract. He has a player option worth $14,898,786 for the 2026-27 season, but it's safe to believe he'll be looking to sign a new long-term deal worth considerably more money after operating on a bargain contract since 2023.
Dave McMenamin of ESPN outlined how the Lakers could sign Reaves to an extension that would effectively equate to another bargain contract at $89.2 million across four seasons.
"He is eligible to sign a four-year, $89.2 million extension this summer, which would replace his $14.9 million option year in 2026-27 with Year 1 of the extension."
The appeal for Reaves would be a guaranteed pay raise starting in 2026-27, but there are two other options that may interest him more—both of which center around waiting until 2026. Per McMenamin:
"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."
The question is: Can the Lakers convince Reaves to let them gamble on his continued development before he decides to bet on himself?
Lakers can save long-term money with an Austin Reaves extension
It must be reiterated that Reaves is by no means obligated to accept a contract extension at four years and $89.2 million or even $98 million. As such, this decision is one that comes down to the Lakers' calculated risk-taking and Reaves' own willingness to accept job security over a potentially larger payday.
There's reason to believe it's the right decision for both sides, however, which makes it worth exploring rather than simply writing off.
For Reaves, signing an extension would protect him from the pitfalls of a deflated market in the event of an injury or even a regression in form. He'd be locked in at an average of $22.3 million per season, which would be far more than he's made in a single campaign up to this point.
For perspective: Reaves made a combined $24,991,512 during the 2023-24 and 2024-25 seasons—combined.
As for the Lakers, signing Reaves at $89.2 million over four years could save them from having to shell out closer to or even upwards of $30 million per season in 2026. There's no guaranteeing that such would transpire, but if Reaves continues to improve, the price of retaining his services will grow exponentially.
Countless teams have been burned by their reluctance to extend players for less than they ended up paying, and many have even lost their rising stars outright. Look no further than Jimmy Butler and Jalen Brunson for examples of both outcomes.
An Austin Reaves extension would carry significant long-term risk
For as intriguing as that all is, there's simply no way around the fact that extending Reaves would come with its share of risks. For one, Los Angeles would be linking Doncic's future to Reaves' development.
Perhaps that's a wise investment, as Doncic has proven capable of thriving alongside star-caliber guards such as Jalen Brunson and Kyrie Irving, but the jury is still out on this pairing.
Furthermore, extending Reaves would entail making a costly investment in his continued ascension toward star status. For as talented as he is, his remaining flaws have generally been masked by the fact that he's played on one of the best bargain contracts in the NBA.
At more than $20 million per season, however, the expectation would be for Reaves to provide borderline All-Star contributions on a nightly basis.
There's also the inherent risk of losing Reaves to injuries or a general form of regression during the span of his contract—or perhaps even before the extension kicks in. That applies to players of all calibers, but for an individual who hasn't yet successfully crossed the All-Star line, the reason for concern is amplified.
Such is life with a player on the rise, however, which leaves Rob Pelinka staring down a decision that will determine the futures of Reaves, Doncic, and the Lakers alike.
