As of Tuesday, Utah Jazz forward Lauri Markkanen becomes eligible for a significant contract renegotiation and extension. This eligibility places Markkanen among a select group of just 13 NBA players since 2010 to potentially restructure their current salary for better terms. Currently in the final year of a four-year, $67.5 million contract originally signed in 2021, Markkanen has seen his stock rise dramatically.
The Finnish standout has enjoyed a meteoric ascent in the NBA, marked by trades that sent him from the Chicago Bulls to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks. He subsequently landed with the Utah Jazz in 2022. Markkanen has since become a linchpin in the Jazz’s lineup, particularly notable following the Donovan Mitchell trade. His remarkable consistency, averaging 24.5 points over his first two seasons in Utah, earned him All-Star honors and the Most Improved Player award in 2023.
Such prolific performances have positioned Markkanen as an integral part of the roster, with his $18 million salary this season widely considered the best value in the league for any All-Star player not on a first-round rookie scale contract. He is one of only three 7-footers in NBA history to make 1,000 career 3-pointers, joining the elite ranks of Dirk Nowitzki and Channing Frye.
Strategic Moves Ahead
Despite Markkanen’s enormous contribution, Utah has been open to trade offers since the transaction activity leading up to the 2024 trade deadline in February. The team’s asking price has been high, reflecting Markkanen’s value both on and off the court. "We'd love to be here. I've said it multiple times. My family likes to be here," said Markkanen, emphasizing his desire to remain with the Jazz.
Starting August 6, the Jazz have the opportunity to renegotiate Markkanen's $18 million salary up to $42.2 million for this season, followed by an extension of an additional four years. This renegotiation could bring the total value to approximately $232 million over the next five years. Alternatively, the team could 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, Utah has been particularly strategic this offseason. Despite having $37 million in cap space, the Jazz have only signed their 2024 first-round picks Cody Williams and Isaiah Collier since July. Additionally, they drafted Kyle Filipowski in the second round and reportedly agreed to contracts with free agents Drew Eubanks and Johnny Juzang. The strategic delay in signing Eubanks, Juzang, and Filipowski preserves Utah’s cap flexibility to renegotiate Markkanen’s contract.
Future Prospects
With $103 million in committed salary, the Jazz need to spend at least $23.7 million more to meet the added rule of the 2023 CBA, which requires teams to spend 90% of the salary cap by the first day of the regular season on October 22. Failing to meet this criteria 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).
Ongoing Trade Talks
The Golden State Warriors have been the most aggressive suitors for Markkanen thus far. There were preliminary discussions with the San Antonio Spurs 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. Having established himself as a cornerstone of the franchise, Markkanen’s continued presence could ensure a bright and competitive future for the Utah Jazz.