Report: Lakers, Austin Reaves have mutual interest in new contract

Austin Reaves is the latest in the impressive Lakers finds of role players. Undrafted out of Oklahoma, Reaves got a two-way contract from the Lakers, which was eventually turned into a regular minimum deal — he is making $1.6 million this season.

He had far outplayed that deal, averaging 12 points a game, becoming a key part of the Lakers’ rotation, and he dropped a career-high 35 on Sunday night. Reaves is up for a massive pay raise this summer, the Lakers want to give it to him and there is mutual interest, reports Jovan Buha at The Athletic.

He will be a restricted free agent this summer, and will undoubtedly have multiple suitors looking to pry him from the Lakers — especially after stat lines like Sunday’s. Both the Lakers and Reaves’ camp have interest in Reaves re-signing in Los Angeles, according to multiple league sources who were granted anonymity so that they coud speak freely. The max the Lakers can offer Reaves is a four-year, $50.8 million contract if they chose to use his Early Bird Rights, but they also have the power to match any contract he signs with another team.

While the Lakers can match any offer, it’s a little more complex than that because Reaves is an Arenas Rule free agent (named after The Hibachi himself). I’ll let our friend Keith Smith of Sportrac explain it.

When a player is an Arenas free agent, opposing teams can still offer whatever salary they are able to give, but the incumbent team is given an avenue to match the offer. What happens in these offers is that the first-year salary for an Arenas free agent is limited to either the Non-Taxpayer Mid-Level Exception (NTMLE) or what a team can match using their Early Bird exception.... That results in what is often referred to as a “poison pill” structure for a contract.

In the case of Reaves, let’s say a team looking for a well-rounded guard — the Orlando Magic — offer something like four years, $60 million. On the Orlando books, that would look like $15 million a season. However, under the Arenas provision, on the Lakers’ books the first year of that deal can only be for the $11.4 million the Lakers can offer right now, and Reaves would make less than $12 million in the second year (still far more than he makes this season). However, in the final two years of this hypothetical offer Reaves would make $17.9 million and $18.8 million on the Lakers’ books, a considerable jump. (If this were an $80 million offer from the Magic, the first two years would be the same but the last two would hit the Lakers’ books hard for more than $27 million a season, hence the poison pill name.)

The Lakers might well match that offer anyway, they still feel the sting of losing another of their young finds, Alex Caruso, and don’t want to let Reaves leave and then thrive somewhere else. Reaves isn’t looking to leave, he has said he loves Los Angeles and playing for the Lakers. However, this is a business and Reaves is not in a position to leave money on the table.

While everyone’s intentions are good, the Lakers have a lot of free-agent decisions to make this summer: D’Angelo Russell, Rui Hachimura, Lonnie Walker IV, Dennis Schroder, Troy Brown Jr. and more (plus Jarred Vanderbilt is extension eligible). There are going to be roster changes, and the Lakers can’t spend like the Warriors or Clippers who don’t appear to care about the tax — the Lakers are a family business and there is a budget.

Two things are for sure: It will be a wild offseason in Los Angeles, and Austin Reaves will get paid. By whom is the question.