The Los Angeles Lakers officially signed Austin Reaves to a new, four-year contract as their biggest financial move of the summer. The deal, when first reported, was set to be $185 million over four years, an average annual value of $46.25 million. It was the 25% maximum contract, the most any team besides the Lakers could have paid him.
News of the official signing came on Sunday, July 12. But shortly after, it became public that Reaves actually took less than the reported $185 million in the final terms of the deal, according to Jovan Buha of Buha’s Block, doing so to help the Lakers with future financial flexibility.
Update on Austin Reaves’ contract with the Lakers: Final terms are four years, $180 million, with a player option in 2029–30, league sources tell me. Reaves agreed to a lower amount than the previously reported $185 million to help give Los Angeles more future flexibility.
— Jovan Buha (@jovanbuha) July 13, 2026
What Reaves essentially did was take half of the raise he could have gotten (4% instead of 8%) between year 1 and year 2 of his contract. Lines up with Mamu’s dip year. 👀
Shoutout @KeithSmithNBA for the numbers pic.twitter.com/R3MftJsy5l
— Trevor Lane (@TrevorLane) July 13, 2026
Reaves doing this is hugely helpful to the Lakers’ goals of keeping a full non-taxpayer mid-level exception open next summer. It’s the same reason why Sandro Mamukelashvili’s contract dips in the second year before rising in Years 3 and 4.
If the Lakers play their cards right, they should have around $16 million in spending power next offseason to land an impact player. It’s far too early to tell who that impact player might be, but a good guess would be to add a point-of-attack defensive wing that the current team is missing.
Rob Pelinka: Lakers thrilled to sign Austin Reaves
Lakers general manager Rob Pelinka raved about Reaves in the press release for his official signing with the team on a four-year, $180 million contract.
“Austin’s relentless pursuit of improvement, fierce competitiveness and commitment to winning have made him an integral part of our organization,” said Los Angeles Lakers President of Basketball Operations and General Manager Rob Pelinka in a statement.
“From the moment he joined the Lakers, Austin has embodied the work ethic and selfless approach that define our culture. We’re thrilled to continue building with him as a cornerstone of our team as we pursue our championship goals.”
With LeBron James now gone, Reaves is now the longest-tenured member of the Lakers and will be one of their leaders moving forward.
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