The Lakers have officially signed Austin Reaves to a four-year, $180 million contract after initially agreeing to a $185 million deal for the same duration. Reaves has reportedly taken this pay cut to help the Lakers with roster flexibility, expectedly for the next three seasons after the 2026-27 season ends.
Jovan Buha, the Lakers’ insider, first reported this change in the terms of Austin Reaves’ deal and then explained the decision on his podcast.
“I got this scoop last night and have been working on it this morning, and my understanding is that the Lakers are trying to get as much cap space as possible for next summer, when they can sign someone with that non-taxpayer MLE.”
“So there was a conversation with Austin and his side, and they were able to negotiate that down from $185 million to $180 million. I don’t know the exact breakdown, Spotrac has it as a $1.7 million discount in years two, three, and four. So I don’t have clarity on whether it’s just for year two or if it’s been spread over the three years.”
“But Austin did take a $5 million pay cut as compared to what was previously agreed upon, and I think it’s notable. I know he had caught some flak from people for taking the full four-year max and not giving the Lakers a haircut at all,” said Buha.
“And I think, whether it is spread over the three years or concentrated on year two, if it does help the Lakers sign someone wth that non-taxpayer MLE, noting that Mamu also took a discount in year two.”
“I think this is a notable development here. If nothing else, it shows that Austin wanted to be here, and if there was some outside interest, it led to him getting a contract bigger than the Lakers initially expected,” Buha added.
“What we’re seeing with the new CBA is that every dollar matters. And even if it is $1.7 million over three years or concentrated on one year, this is a nice gesture because this is something he didn’t have to do.”
“They had already given him the $185 million, and this is what retroactively happened when he was like, ‘If this is what helps the team make a move next summer, then this is a discount I will take,'” Buha concluded.
Therefore, this is a solid gesture from Reaves to once again earn the faith of the Lakers’ fans that this extension was not about money for him but rather about securing his long-term future with the franchise he hopes to retire with.
When asked about what prompted his decision to stay with the Lakers during his conversation with the media today, Reaves pointed to his relationships with the people on the team.
“I just think it’s the organization, the coaching staff, obviously my relationship with the guys on the team last year, and then Luka, he’s one of my best friends on this planet. I talk to him almost every single day. He sends me videos of his golf swing and asks me what he can do to get better, and I tell him I’m not a coach,” Reaves said.
“But yeah, just the people that are in this organization, how they run, and the coaching staff are a big reason. I feel like we kind of see eye-to-eye on a lot of things, and I think their competitive nature is one of the biggest reasons.”
Since the details of the contract breakdown have not yet been revealed, it will be fascinating to see if the Lakers are planning to concentrate the discount on year two of the contract or spread it across three years. But it seems likely that this move is with the intention to use the $15 million 2027 non-taxpayer MLE they have to either sign a major free agent or trade for a player next summer.
All eyes are now on the Lakers’ front office to convert this discount into a solid roster addition.
