Both players apparently have opt outs after this year:( http://www.dailynews.com/Stories/0,1413,200%257E20955%257E1514738,00.html
Also, the LA Times reports a similar thing.
Because Payton is still hoping for one more big payday, it is believed he wanted a short deal, with the option of becoming a free agent again next summer. The Lakers were willing to give him a long-term contract, worth $22.6 million over four years
Also the Lakers need to get payton for an extention. I know he will opt out next year when the Lakers win the ring!!! Im wondering if the Lakers can offer him more money next year when he opts out? That goes for malone too!!!