As of Tuesday, Utah Jazz forward Lauri Markkanen becomes eligible for a significant contract renegotiation and extension, placing him 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's rising stock makes this a pivotal moment for both him and the Jazz.
Markkanen’s journey through the NBA has been marked by significant trades and remarkable performances. Initially traded to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks, Markkanen found his way to Utah in 2022. His arrival in Utah coincided with the Donovan Mitchell trade, positioning Markkanen as a key figure in the Jazz's lineup.
With an $18 million salary this season, Markkanen is widely considered to be 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 per game over his first two seasons with the Jazz, 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 substantial contributions, the Jazz have been open to trade offers leading up to the 2024 trade deadline in February. The team’s high asking price reflects Markkanen’s considerable value both on and off the court. As of August 6, the Jazz have the option to renegotiate Markkanen's $18 million salary up to $42.2 million for this season, followed by a four-year extension. This renegotiation could bring the total value of the contract to approximately $232 million over the next five years. Another option would allow 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 implemented these strategies strategically. The team has been particularly cautious this offseason, signing only 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. Eubanks, Juzang, and Filipowski remain unsigned, thus 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 2023 CBA rule, 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 criterion would result in forfeiting the luxury tax distribution the team would receive at the end of the season. The upcoming season will also see 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 such as 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 about pairing Markkanen with Victor Wembanyama did not gain much traction. The Sacramento Kings showed interest but eventually opted to acquire DeMar DeRozan via a sign-and-trade deal. Additionally, the Oklahoma City Thunder and the Houston Rockets, both possessing substantial draft capital, could potentially outbid other teams if they choose to pursue Markkanen aggressively.
As the eligibility for renegotiation and extension looms, Utah Jazz forward Lauri Markkanen expressed a clear desire to remain with the team, stating, "We'd love to be here. I've said it multiple times. My family likes to be here." With the path to renegotiate and extend Markkanen's contract clearly outlined, the Utah Jazz are poised to make strategic financial decisions that could shape the team's future and competitive landscape in the seasons to come.