It’s been quite a summer for Los Angeles Lakers star guard Austin Reaves, who signed a record-breaking contract–originally reported to be four years and $185 million, the most for an undrafted player–before the start of free agency amid rumors that he was weighing offers from other teams. As it turns out, Reaves was willing to take a haircut on that original number as he accepted a dip in pay for next season, with the total value of his deal dropping to $180 million.
Per Keith Smith of Spotrac, the contract for Reaves will start at $41.2 million for the 2026-27 season, but rather than balloon up by 8% in Year 2, it goes up only to $42.9 million. That’s about $1.6 million less than a full second-year raise, and as a percentage of the salary cap, Reaves drops from 25.3% next season to 24.7% in 2027-28.
The Lakers pulled a similar maneuver with the free-agent contract of Sandro Mamukelashvili this summer–his pay drops from $13 million in 2026-27 to $12.4 million the following year. The Lakers have a clear reason for doing so: They want to save enough space so that they can use the full mid-level exception in the summer of 2027.
Lakers May Need to Make Future Move
It could prove to be a big deal for the Lakers as they struggle to close out this offseason after a promising start which saw them add Walker Kessler in a massive sign-and-trade with Utah, as well as signing Mamukelashvili, Quentin Grimes and Collin Sexton. L.A. brought in backup big man Kevon Looney over the weekend and on Monday added wing Ziaire Williams from the Nets.
The roster now stands at 15 players, but the Lakers continue to be active in finding players. L.A. may ultimately cut loose Bronny James after his father, LeBron James, decides on a new destination for next season.
The Lakers are still hopeful on Jonathan Kuminga, but if they can’t land him, they might have to wait until next summer to make another significant roster move–and using the full mid-level exception, worth more than $15 million, would be a significant tool.
Austin Reaves Has Not ‘Processed’ LeBron James Decision
As for Reaves, he is adjusting to the new-look Lakers, though he admits it is a slow process. He will not only be a star making nine figures next season, but he will also be suiting up for the Lakers without the guidance of LeBron James for the first time in his career. Reaves was an undrafted player out of Arkansas back in 2021 when James was impressed by his ability and took him under his wing.
James helped push to get Reaves onto the Lakers roster.
“I don’t know if I’ve honestly processed it yet,” Reaves said of James. “I was kind of thinking about it last night when I got here. Starting the season without him being on the team is going to be different for me. He’s kind of all I’ve ever known, him being around, joking around, acting like he’s 15. But that’s his decision and like I’ve said anytime I have talked about it, I’ve got nothing but love and respect for him.”
Lakers’ Austin Reaves Takes Salary Cut to Help With Free-Agent Move