The Los Angeles Lakers have agreed to terms on a four-year, $185 million contract with star guard Austin Reaves. This significant deal, finalized Wednesday, comes just after the team selected Baylor wing Cameron Carr with the No. 24 pick in the NBA draft.
Despite the substantial value of Reaves' new contract, its immediate financial impact on the Lakers' offseason plans is minimal. This is because Reaves has not yet officially signed the contract. Instead, his cap hold of $20.9 million is currently on the Lakers' books. This cap hold allows the team to retain his Bird Rights and exceed the projected $165 million salary cap to re-sign him. The larger figure, his $41.3 million salary for the 2026-27 season, will only be accounted for once the contract is officially signed.
This strategic timing provides the Lakers with multiple avenues as they approach the start of free agency. One option involves relinquishing the cap holds for all players except Reaves. This move would free up approximately $48 million in cap space, which the team could then utilize for various purposes. These include re-signing their own free agents, acquiring new unrestricted free agents, making offer sheets for restricted free agents, or facilitating trades without needing to match outgoing salaries. Should the Lakers choose this route, they would also have access to the $9.4 million room exception. Re-signing Reaves would likely be the final step in this scenario.
Alternatively, the Lakers could elect to remain over the salary cap. This approach would allow them to retain the rights to re-sign most of their impending free agents. Additionally, they would have access to the $15 million non-taxpayer mid-level exception. This exception can be used to sign a single player or multiple free agents, a strategy employed last season with the acquisitions of Deandre Ayton and Jake LaRavia.
The Lakers now face a roster with five players—LeBron James, Rui Hachimura, Maxi Kleber, Luke Kennard, and Jaxson Hayes—set to become unrestricted free agents. Furthermore, Deandre Ayton and Marcus Smart have until Monday to decide whether to opt into their player options or become free agents. Reaves’ new contract, while substantial, is structured to avoid impeding the Lakers' financial flexibility during this critical offseason period.