As of last Tuesday, Utah Jazz forward Lauri Markkanen has become eligible for a significant contract renegotiation and extension. This places the Finnish star among an elite group of just 13 NBA players since 2010 to potentially restructure their current salaries for more favorable terms.
Currently, Markkanen is in the final year of a four-year, $67.5 million contract originally signed in 2021. His stock has risen dramatically since then, making him one of the league's most valuable players. His journey has been marked by multiple notable trades, first to the Cleveland Cavaliers in a three-team deal involving Derrick Jones Jr. and multiple draft picks. He then found himself in Utah in 2022, becoming a key part of the Jazz's lineup after the Donovan Mitchell trade.
This season, Markkanen's $18 million salary is considered the best value in the league for any All-Star player not on a first-round rookie scale contract. His performance has been consistent, averaging 24.5 points over his first two seasons in Utah, which earned him All-Star honors and the Most Improved Player award in 2023. Remarkably, Markkanen 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 his contributions, Utah has been open to trade offers for Markkanen since the activity leading up to the 2024 trade deadline in February. However, the team's asking price has been high, reflecting his value 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 extension of an additional four years. This renegotiation could bring 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.
Utah has been strategic this offseason, operating within the financial constraints of the collective bargaining agreement's second apron, despite having $37 million in cap space. They 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. Notably, Eubanks, Juzang, and Filipowski remain unsigned, preserving Utah’s cap flexibility to renegotiate Markkanen’s contract and meet salary cap requirements.
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 requirement 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).
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 also showed interest, but ultimately chose 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 decide to pursue Markkanen seriously.
With a clear path to renegotiate and extend Markkanen's contract, the Utah Jazz are in a position to make strategic financial decisions that could significantly shape the team’s future. "We'd love to be here. I've said it multiple times. My family likes to be here," Markkanen said, expressing his willingness to remain with the Jazz.
As the Jazz navigate their financial strategies and roster decisions, Markkanen stands as a focal point for the franchise, poised to influence the team's competitive landscape for seasons to come.