Austin Reaves entered the NBA as an undrafted guard simply fighting for a roster spot. Five years later, his hard work has been rewarded with a maximum contract that places him as one of the cornerstones of no less than the Los Angeles Lakers.

Reaves has agreed to re-sign with the Lakers on a four-year, $185 million contract that includes a player option in the final season. The deal represents the full maximum salary available to a player with six or fewer years of experience and is also the largest contract ever signed by an undrafted free agent in NBA history.

The Lakers could have offered the 28-year-old guard a fifth year, but the two sides instead settled on a slightly shorter deal. Even so, the contract is an unmistakable sign of their belief in him. Reaves averaged a career-best 23.3 points per game last season, along with 4.7 rebounds, 5.5 assists, and 1.1 steals. He is no longer merely a useful supporting player or a developmental success story–the Lakers now view him as a central building block in their pursuit of another championship.

Los Angeles also had good reason to act quickly. Reaves was widely considered the best player available in free agency, and the Detroit Pistons reportedly had interest in offering him a maximum-level deal. Rather than risk losing him, the Lakers made the prudent decision to lock him in.

What makes this contract even more valuable is that it does not prevent Los Angeles from making additional moves this offseason. The Lakers are projected to have roughly $48 million in cap space, which would give them more spending power than any other team in the league.

Reaves’ unusually low salary on his previous contract helped make that possible. A free agent remains on his team’s books through a predetermined cap hold, allowing that team to exceed the salary cap later to re-sign him. Because Reaves had been significantly underpaid, his cap hold was less than $21 million, and that amount had already been included in the Lakers’ projected cap space.

The new contract will matter to Los Angeles’ finances in the years ahead, but it does not reduce what the team can spend right now. Had the Lakers renounced Reaves’ rights or allowed him to leave, they could have created nearly $70 million in cap space, but they also would have lost one of their best players. Keeping him while preserving considerable financial flexibility represents an ideal outcome.

Reaves will now continue playing alongside Luka Doncic, who is under contract through at least 2028. Together, they give the Lakers two long-term centerpieces around whom the rest of the roster can be built.

It remains to be seen how Los Angeles will use its cap space, but the team enters the offseason from a position many franchises would envy. The Lakers have arguably the league’s most talented backcourt with Doncic, one of the NBA’s premier stars, and Reaves who has developed into a max-level player.

The five-year veteran has already exceeded every reasonable expectation placed upon him when he first fought for a spot in the league. His new contract brings greater pressure, but it also confirms his status as a legitimate NBA star. He will now be one of the leading figures in the Lakers’ pursuit of their next championship, and if they can pull it off, he will earn a permanent place in Los Angeles’ hallowed lore.