The NBA offseason, when on-court action slows, is a breeding ground for contract discussions. And for the Los Angeles Lakers, the name on everyone’s mind isn’t a superstar, but a player who was once undrafted: Austin Reaves. His journey from an unknown senior at Oklahoma to a key player for the Lakers is a fairytale story. But now, that story is at a major crossroads. Will the Lakers be willing to pay a lucrative contract to keep Reaves, especially with new, tighter luxury tax regulations?

1. The “Miraculous” Journey of Austin Reaves

Few would have believed that a player who shot just 30.5% from three in his final college season and went undrafted would become a crucial player for a franchise like the Lakers. But Austin Reaves did just that. Last season, he had a breakout performance, averaging 20.2 points per game and establishing himself as a reliable “third scorer” alongside Luka Doncic and other stars. Reaves is not just a skilled player; he’s a symbol of hard work and resilience.

2. The Complicated Contract Dilemma

After his breakout season, Reaves has a player option for the upcoming year, and this is where things get complicated. Reaves, a player with no deep pedigree, has had such a rapid rise that it’s difficult to determine his market value.

According to NBC Sports, Reaves is reportedly seeking a contract in the range of Tyler Herro of the Miami Heat, who signed a four-year, $120 million deal (or $30 million per year). Herro was a No. 13 overall pick and has an All-Star appearance to his name. Reaves believes that based on his performance, he deserves a similar salary.

However, the problem is that Herro’s contract was signed before the new CBA’s stricter luxury tax aprons became a reality. The Heat were reportedly trying to trade Herro almost as soon as they gave him the contract, suggesting they may have overpaid. One anonymous GM put it bluntly: “You can’t just say, ‘Well, he averages 20 (points) so he needs to get $30 (million) per year.’ No. You’re going to have to be realistic about what a guy is worth, on both ends of the floor, before you put a number out there. And Austin Reaves should get $24, $25 (million) a year. Not $30.”

3. The Trade-off Between Value and Cap Space

With the Lakers now having Luka Doncic and other stars, they must be careful with their cap sheet. If Reaves continues to shine and performs well in the playoffs, the Lakers would likely be “gladly” willing to pay him $30 million per year to keep him. An efficient scorer like Reaves next to Doncic is a valuable asset.

Conversely, if Reaves struggles in the playoffs, the Lakers’ front office—who will have significant cap space—might question whether $30 million per year is the best way to spend their money. They could use that money to pursue another player who might be a better fit for the team’s needs.

Austin Reaves defied all odds to become an NBA success story. But now, that story is in a new chapter, where money and strategy are the decisive factors. Reaves’s contract is not just about paying a player; it’s a test of the Lakers’ front office’s vision. Will they take the risk of paying $30 million per year to keep this “core piece,” or will they seek an alternative solution? The answer will not only shape Reaves’s future but also the Lakers’ path to another championship.