Lakers offseason primer: Austin Reaves free agency, Anthony Davis extension, Kyrie Irving option, more

The Los Angeles Lakers had one of the most impressive mid-season turnarounds in NBA history from spending most of the year in 13th place to making the Western Conference Finals. They couldn’t reach their ultimate goal of winning a championship, but this team will be greatly remembered by fans as a favorite in recent history.

Now the Lakers head into the offseason with a ton of optionality on the make-up on the roster. The prevailing thought after completing a busy trade deadline was that the Lakers would likely stay over the cap and run back the entire roster. But as they got deeper into the postseason, their rotation tightened and several new additions were squeezed out. The Lakers will likely look to prioritize bringing back key players while using their remaining flexibility and trade assets to improve the rest of the roster.

Here is a preview of the 2023 offseason for the Los Angeles Lakers.

State of the roster and offseason options

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One of the bigger questions surrounding the Lakers heading toward the summer of 2023 is whether or not they would be a cap space team. They are still positioned to generate as much as $33 million, which could put them in the mix for one of the top free agents like Kyrie Irving. But the Lakers seem more likely to operate over the cap this offseason since the cap space route would decimate their depth. The over-the-cap option would allow them to keep role players under contract and re-sign their top free agents.

The Lakers were $17.2 million over the tax this year, which resulted in a $35.9 million penalty. They are now set to enter the repeater tax in 2023-24, which will force them to pay significantly higher luxury tax rates than they had the previous three seasons. That same amount over the tax line would result in a $54.1 million penalty with the repeater tax designation.

The increased costs to run back this roster could guide them to reshape it in a more cost-effective way. The biggest factor that could lead to that decision is how several of their highest-paid players not factoring in the playoffs. They have outs on some of the players they acquired at the trade deadline like Malik Beasley and Mo Bamba. The Lakers have the option to clear their salaries off their books or potentially trade them for players that fit their needs.

The Lakers could still swing for a major contributor without needing to use cap space. For example, if Irving is indeed interested in joining the Lakers, it would make more sense for them to acquire him in a sign-and-trade. Such a framework could include trading draft picks and the salaries of Beasley and Bamba, or a double sign-and-trade featuring Russell. A starting salary in the $33-34 million range for Irving would allow the Lakers to fill out their roster under the first apron while being able to re-sign Austin Reaves, Rui Hachimura, and potentially Lonnie Walker IV or a replacement with a portion of the mid-level exception.

How the new CBA affects them

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Even if the Lakers commit to spending big on the roster, there is a strong case for them to limit their tax penalty or even avoid one completely. That is due to the many new team-building restrictions for big spenders that are set to be implemented in the new CBA.

Being deep into the luxury tax will likely put the Lakers over the second tax apron. Starting in 2023-24, teams above the second tax apron lose access to the mid-level exception and can’t sign players waived mid-season with salaries higher than the non-taxpayer mid-level exception. Also, they are limited to taking back up to 110 percent of outgoing salaries in a trade instead of 125 percent.

Starting in 2024-25, such teams won’t be able to take back more salaries in a trade than they’re giving out. They also can’t aggregate players in trades, convey cash to other teams in trades, use existing exceptions from the previous season, acquire a player under contract or generate a trade exception when sign-and-trading their own free agent to another team. The Lakers essentially won’t be able to increase their payroll going forward other than by re-signing their own players, signing draft picks, and minimum players.

Also, starting in 2025-26 is the implementation of modified luxury tax rates. It will lower them for teams below the third level, roughly $11 million over the tax, and increase them for teams above it. Remember how the Lakers’ $35.9 million luxury tax payment this season would equate to $53.1 million in the repeater tax? The new system would increase that amount to nearly $70 million.

It’s important to keep these changes in mind since they could influence how much the Lakers choose to spend over the next few years. As long as LeBron James and Anthony Davis are on the team earning the high salaries they are, the Lakers will always have challenges fitting the rest of the pieces around them. These new CBA additions might not change the Lakers’ short-term plans but if the team were to fall below expectations, it could shorten the window this core has.

Extension candidate: Anthony Davis

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Anthony Davis will become extension-eligible this offseason. When he signed his five-year, $189.9 million maximum contract in 2020, some thought he was potentially leaving money on the table by signing such a long deal. He could’ve signed a two-year contract, then hit free agency again and signed another maximum contract for a higher amount. But it’s understandable now after several seasons filled with missed time due to injuries.

He still missed a significant amount of games this past season but he also had one of the most impactful years in his career. He probably would’ve been a lock for an All-NBA Team had he not missed so much time, and his absence of it will be felt after leading the Lakers to the playoffs with the league’s top defense after the All-Star break. With this great season preceding his extension eligibility, it would make sense for him to capitalize on it. He can extend during the offseason for a maximum of three years, projected at $167.5 million.

Extension candidate: Jarred Vanderbilt

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Jarred Vanderbilt will also be extension-eligible throughout next season. The 24-year-old is one of the league’s best bargains and has been a perfect fit into the Lakers lineup. His role slowly got reduced as the Lakers got into later rounds but he was still a major contributor for them in the regular season and their series against Memphis. An extension that gives him an average annual salary along with what Brandon Clarke, Larry Nance Jr., and Daniel Gafford make could make sense for Vanderbilt.

Free agent: Austin Reaves

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Austin Reaves is the top free agent the Lakers will likely prioritize this summer. The second-year guard is one of the biggest undrafted success stories with a massive leap at the offensive end this season. He is set to become a restricted Early Bird free agent this offseason and the Lakers could have some challenges toward re-signing him.

They are limited to offering him four years, projected at $54 million, the maximum amount a team can re-sign their Early Bird free agents to. Teams with cap space can offer him an offer sheet for more money that, if matched by the Lakers, would have significantly higher cap hits on the backend. The most another team with cap space can offer him is projected at four years, $100.4 million.

An offering team would only need $25.1 million in cap space to offer Reaves his maximum amount, which would also be his annual cap hit for his signing team. If the Lakers match such an offer, this is what the yearly breakdown would be assuming they operate over the cap this summer:

2023-24: $12,220,000

2024-25: $12,831,000

2025-26: $36,850,000

2026-27: $38,508,250

Teams interested in Reaves may need to offer him such a deal or close to his maximum amount if they’re going to get the Lakers to potentially not match.

Free agent: D’Angelo Russell

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D’Angelo Russell is another one of the Lakers’ top free agents this offseason who played a huge part in turning around their season. His play got inconsistent as the Lakers got deeper in the playoffs but he also had by far the best postseason performance of his career. A return to Los Angeles seems like a good bet considering a lack of logical suitors among teams that can offer him more than the mid-level exception.

He can still avoid free agency since he remains extension-eligible through June 30. He is limited to extend for up to two years, $67.5 million due to his trade restriction but can get more as a free agent. However, he’s more likely to face a market correction on his next contract in free agency that gives him an annual salary comparable to the recent deals of Terry Rozier, Malcolm Brogdon, and Spencer Dinwiddie.

Free agent: Rui Hachimura

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Rui Hachimura, who was acquired mid-season by the Lakers as a potential future building block, is also set to become a free agent. He emerged as a major contributor in the playoffs as he punished opponents who ignored him defensively with efficient scoring. The Lakers can make him a restricted free agent by tendering him a $7.7 million qualifying offer, and that amount could be where contract offers start for him.

2023-24 SALARY SITUATION

Players rostered: 8

Two-way players: 1 (Cole Swider)

Guaranteed salaries: $93.2 million

Non-guaranteed salaries: $33.6 million

Total salary: $126.8 million

Luxury tax space: $35.2 million

Apron space: $42.6 million

Second apron space: $52.6 million

Spending power:

Non-taxpayer Mid-level: $12.2 million

Bi-Annual: $4.5 million

Patrick Beverley trade exception: $2,700,000 (expires February 9, 2024)

Damian Jones trade exception: $2,298,385 (expires February 9, 2024)

Thomas Bryant trade exception: $1,836,090 (expires February 9, 2024)

Juan Toscano-Anderson trade exception: $1,836,090 (expires February 9, 2024)

LeBron James

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2023-24 salary: $46,900,000

Remaining salary guaranteed: $97,133,373 through 2024-25

Additional notes:

Anthony Davis

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2023-24 salary: $40,600,080

Remaining salary guaranteed: $83,819,520 through 2024-25

Additional notes:

2024-25 salary is an early termination option worth $43.2 million.

Extension-eligible during the offseason for up to three years, $167.5 million.

Malik Beasley

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2023-24 salary: $16,524,106 (team option)

Remaining salary guaranteed: $0

Additional notes:

Mo Bamba

(Photo by Kevork Djansezian/Getty Images)

2023-24 salary: $10,300,000

Remaining salary guaranteed: $0

Additional notes:

Jarred Vanderbilt

(Photo by Matthew Stockman/Getty Images)

2023-24 salary: $4,698,000

Remaining salary guaranteed: $300,000

Additional notes:

2023-24 salary is partially guaranteed for $300,000. Fully guaranteed if not waived by June 30.

Extension-eligible throughout 2023-24.

Shaquille Harrison

2023-24 salary: $2,413,304

Remaining salary guaranteed: $0

Additional notes:

Max Christie

2023-24 salary: $1,719,864

Remaining salary guaranteed: $1,719,864

D’Angelo Russell

(Photo by Kevork Djansezian/Getty Images)

Cap hold: $40,200,000

Type of free agent: Bird (unrestricted)

Additional notes

Can avoid free agency and extend with the Lakers by June 30. Eligible for a maximum of two years, $67.5 million.

Rui Hachimura

(Photo by Harry How/Getty Images)

Cap hold: $18,789,564

Type of free agent: Bird (restricted)

Additional notes:

Lonnie Walker

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Cap hold: $7,774,800

Type of free agent: Non Bird (unrestricted)

Austin Reaves

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Cap hold: $2,189,698

Type of free agent: Early Bird (restricted)

Additional notes:

Troy Brown Jr.

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Cap hold: $1,989,698

Type of free agent: Non Bird (unrestricted)

Wenyen Gabriel

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Cap hold: $1,989,698

Type of free agent: Early Bird (unrestricted)

Dennis Schroeder

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Cap hold: $1,989,698

Type of free agent: Non Bird (unrestricted)

Tristan Thompson

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Cap hold: $1,989,698

Type of free agent: Non Bird (unrestricted)

Scotty Pippen Jr.

Cap hold: $1,774,999

Type of free agent: Non Bird (restricted)

2023 Pick No. 17

2023-24 salary: $3,640,200

Remaining salary guaranteed: $17,617,598 through 2026-27

Additional notes: HoopsHype and ForTheWin’s draft expert Bryan Kalbrosky has Nick Smith Jr. being selected with the 17th overall selection in his most recent mock draft.

You can follow Yossi Gozlan (@YossiGozlan) on Twitter.

Story originally appeared on HoopsHype