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LOS ANGELES, CALIFORNIA - MAY 11: LeBron James #23 of the Los Angeles Lakers looks on against the Oklahoma City Thunder in Game Four of the Second Round of the NBA Western Conference Playoffs at Crypto.com Arena on May 11, 2026 in Los Angeles, California. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Luke Hales/Getty Images)

The Los Angeles Lakers have made the decision to sign Austin Reaves for as much money as possible. Los Angeles was expected to bring him back at some number, but it was unknown what that number was. Now, it has been revealed as a max contract.

According to ESPN’s Shams Charania, the Lakers have signed him to a four-year deal worth $185 million. It’s also the richest contract for a player who went undrafted. Reaves now will return to a backcourt that has Luka Doncic at the point guard spot.

However, will LeBron James be joining him? James is also a free agent this summer. This contract makes it less likely that LA will be bringing him back.

The Lakers Will Have a Hard Time Bringing Back LeBron James

This contract makes it less likely that James returns to Los Angeles. Reaves has engulfed a lot of the cap space that the team was projected to have. Had Reaves taken less than the max, perhaps they would have had more money left over for James. Now, James would have to take a massive pay cut to return.

James has only taken a pay cut once in his career, and that was when he was in Miami. It seems that he is unwilling to take a huge pay cut, which would help the Lakers improve the roster around James. Perhaps this contract is a sign that they want to move on.

If they do move on, the Lakers have to completely re-haul the entire frontcourt. They clearly want to improve the center spot. They could decide to bring back Rui Hachimura in free agency, but that still doesn’t help them when it comes to addressing the spot James is vacating.

However, James seems to love living in Los Angeles. He would never play for the Clippers, so the Lakers continue to be the best option for him, although he could stay in California and play for one of the other teams along the coast.

Los Angeles Could Watch LeBron James Play for a Rival

James heading to the Golden State Warriors has now become an increased possibility. If he wants to stay close to LA, the Warriors would be the best spot for him. They would also give him a puncher’s chance at making a run for a championship, although the Lakers would arguably give him a better shot.

The Lakers have to figure out a way to become a better team with less cap space now. With Reaves locked up, the Lakers might have to go into the luxury tax to be a seriously competitive team in the Western Conference, which has plenty of contenders already.

If James does go to the Warriors and somehow wins a title, Rob Pelinka will have a lot of questions to answer. Perhaps James will be willing to take a pay cut after all.