As of Tuesday, Utah Jazz forward Lauri Markkanen has become eligible for a significant contract renegotiation and extension, joining an exclusive group of just 13 NBA players since 2010 to potentially restructure their current salary under more favorable terms.
Markkanen is currently in the final year of a four-year, $67.5 million contract originally signed in 2021. Over the years, his stock has risen dramatically, making him a linchpin in the Jazz's lineup following notable trades. Initially traded to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks, he later found his way to Utah in 2022. Following the Donovan Mitchell trade, Markkanen became indispensable to the team.
This season, Markkanen's $18 million salary is regarded as the best value in the league for any All-Star player not on a first-round rookie scale contract. His consistent performance, averaging 24.5 points over his first two seasons in Utah, earned him All-Star honors and the Most Improved Player award in 2023. Notably, he is one of only three 7-footers in NBA history to make 1,000 career 3-pointers, joining the ranks of Dirk Nowitzki and Channing Frye.
Despite Markkanen's significant contributions, Utah has been open to trade offers since the transaction activity leading up to the 2024 trade deadline in February. The high asking price for Markkanen reflects his substantial value both on and off the court. As of August 6, the Jazz can renegotiate Markkanen's $18 million salary up to $42.2 million for the season, followed by an extension of an additional four years, potentially bringing the total value to approximately $232 million over the next five years. Another option allows the Jazz to raise his current salary to $33.1 million and extend for four years at a total value of $207.8 million.
Operating within the financial constraints of the collective bargaining agreement's second apron, despite having $37 million in cap space, Utah has been strategic this offseason. The team has only signed their 2024 first-round picks Cody Williams and Isaiah Collier since July. They also drafted Kyle Filipowski in the second round and reportedly agreed to contracts with free agents Drew Eubanks and Johnny Juzang. However, Eubanks, Juzang, and Filipowski remain unsigned, preserving Utah’s cap flexibility to renegotiate Markkanen’s contract.
With $103 million in committed salary, the Jazz need to spend at least $23.7 million more to meet the additional rule of the 2023 CBA, requiring teams to spend 90% of the salary cap by the first day of the regular season on October 22. Failing to meet this criterion would result in forfeiting the luxury tax distribution the team would receive at the end of the season.
The upcoming season will also feature significant contributions from seven picks from the past three drafts, including guard Keyonte George, forward Cody Williams, and center Walker Kessler. The Jazz have remained active during trade deadlines, retaining veterans like guard Jordan Clarkson, who has been with the team since the Donovan Mitchell and Rudy Gobert era (2021-22).
So far, the Golden State Warriors have been the most aggressive suitors for Markkanen. Preliminary discussions with the San Antonio Spurs aimed to pair Markkanen with Victor Wembanyama, though those talks did not gain much traction. The Sacramento Kings showed interest as well but eventually opted to acquire DeMar DeRozan via a sign-and-trade deal. The Oklahoma City Thunder and the Houston Rockets, both possessing substantial draft capital, could outbid other teams if they choose to pursue Markkanen aggressively.
With a clear path to renegotiate and extend Markkanen's contract, the Utah Jazz are poised to make strategic financial decisions that could shape the team's future and competitive landscape for seasons to come. Markkanen, for his part, has voiced his desire to stay in Utah, saying, "We'd love to be here. I've said it multiple times. My family likes to be here."