As of Tuesday, Utah Jazz forward Lauri Markkanen becomes eligible for a significant contract renegotiation and extension, marking a pivotal moment for the franchise and the player. This milestone places Markkanen among a rare group of just 13 NBA players since 2010 to potentially restructure their current salary for more favorable terms.
Markkanen is currently in the final year of a four-year, $67.5 million contract initially signed in 2021. His journey through the league has been nothing short of remarkable. Notably, Markkanen was traded to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks. A subsequent trade sent him to Utah in 2022, where he became an integral part of the Jazz lineup following the Donovan Mitchell trade.
The Finnish forward has proven his worth in Utah, with his $18 million salary this season being touted as the best value in the league for any All-Star player not on a first-round rookie scale contract. His exceptional 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. Additionally, Markkanen's proficiency beyond the arc has placed him in elite company; he's one of only three seven-footers in NBA history to make 1,000 career three-pointers, alongside legends Dirk Nowitzki and Channing Frye.
Despite his impressive contributions, the Jazz have been receptive to trade offers since the trade activity leading up to the 2024 deadline in February. The team's high asking price reflects Markkanen's significant value both on and off the court. As of 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 additional four-year extension. This renegotiation could bring the total value to approximately $232 million over the next five years. Alternatively, the Jazz 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, the Jazz have managed to preserve cap flexibility despite having $37 million in cap space. This offseason, they have only signed their 2024 first-round picks Cody Williams and Isaiah Collier, while drafting Kyle Filipowski in the second round and reportedly agreeing to contracts with free agents Drew Eubanks and Johnny Juzang. Eubanks, Juzang, and Filipowski remain unsigned, allowing Utah to keep their options open for renegotiating Markkanen's contract.
With $103 million in committed salary, the Jazz must spend at least $23.7 million more to meet the 2023 CBA's rule, which requires teams to spend 90% of the salary cap by the first day of the regular season on October 22. Failure to meet this criterion would result in forfeiting the luxury tax distribution at the end of the season.
The upcoming season will also feature significant contributions from recent draft picks, including guard Keyonte George, forward Cody Williams, and center Walker Kessler. The Jazz have been active during trade deadlines, retaining veterans like guard Jordan Clarkson, who has been with the team since the Mitchell and Rudy Gobert era (2021-22).
Interest in Markkanen has been high across the league. The Golden State Warriors have been the most aggressive suitors for the forward, while preliminary discussions with the San Antonio Spurs to pair Markkanen with Victor Wembanyama did not progress significantly. The Sacramento Kings also showed interest but eventually acquired DeMar DeRozan via a sign-and-trade deal. The Oklahoma City Thunder and the Houston Rockets, both possessing substantial draft capital, could potentially outbid other teams if they decide to pursue Markkanen intensely.
As a crucial piece of the Jazz's future, Markkanen has expressed his affinity for Utah, saying, "We'd love to be here. I've said it multiple times. My family likes to be here." 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 competitive landscape for seasons to come.