As of Tuesday, Utah Jazz forward Lauri Markkanen becomes eligible for a significant contract renegotiation and extension, positioning him among a select group of just 13 NBA players since 2010 to potentially restructure their current salary for better terms.
Currently, Markkanen is in the final year of a four-year, $67.5 million contract he originally signed in 2021. His journey in the NBA has seen remarkable ups and downs, including a notable trade to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks. A subsequent trade then sent him to Utah in 2022, where he quickly became a crucial figure in the Jazz’s lineup following the Donovan Mitchell trade.
This season, Markkanen's $18 million salary is widely considered the best value in the league for any All-Star player not on a first-round rookie scale contract. Averaging 24.5 points over his first two seasons in Utah, his consistent performance earned him All-Star honors and the Most Improved Player award in 2023. His impact is not limited to scoring, as 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.
Contract Renegotiation Options
This exceptional performance has led to the Jazz considering significant options for Markkanen's contract renegotiation. As of August 6, the team has 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 Jazz could raise his current salary to $33.1 million and extend for four years at a total value of $207.8 million. These options reflect Markkanen’s soaring 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," Markkanen has expressed, indicating his preference to stay in Utah.
Strategic Moves by the Jazz
Utah has been particularly strategic this offseason, only signing their 2024 first-round picks Cody Williams and Isaiah Collier since July, while also drafting Kyle Filipowski in the second round. Reportedly, they have agreed to contracts with free agents Drew Eubanks and Johnny Juzang, but these players 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 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. If they fail to meet this criterion, they would forfeit the luxury tax distribution the team would receive at the end of the season.
In light of these constraints, the Jazz have the potential to make significant strategic financial decisions that could shape the team’s future. The upcoming season will feature significant contributions from seven picks from the past three drafts, including guard Keyonte George, forward Cody Williams, and center Walker Kessler. Veterans like guard Jordan Clarkson, who has been with the team since the Donovan Mitchell and Rudy Gobert era, continue to provide stability and leadership.
Interest from Other Teams
Utah's openness to trade offers for Markkanen has generated considerable interest from other teams. The Golden State Warriors have been the most aggressive suitors for Markkanen thus far. Preliminary discussions with the San Antonio Spurs to pair Markkanen with Victor Wembanyama did not gain much traction, and while the Sacramento Kings showed interest, they 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 Jazz are poised to make strategic financial decisions that could shape the team’s future and competitive landscape for seasons to come. Markkanen’s potential new contract highlights the value he brings to the team, both as a player and as a cornerstone for future successes.