As of this week, Utah Jazz forward Lauri Markkanen is poised for a transformative period in his NBA career. The Finnish player has become eligible for a significant contract renegotiation and extension, placing him among an elite group of just 13 NBA players since 2010 to potentially restructure their current salary for more favorable terms.
Under his existing four-year, $67.5 million deal signed in 2021, Markkanen's value has increased substantially. His journey, marked by impactful trades from the Chicago Bulls to the Cleveland Cavaliers—a part of a three-team deal involving Derrick Jones Jr. and multiple draft picks—culminated in him joining the Jazz in 2022. The move saw Markkanen become a cornerstone of the Jazz roster following the Donovan Mitchell trade.
Markkanen’s $18 million salary for this season is widely regarded as the best value in the league for any All-Star not on a first-round rookie scale contract. His consistent performance, averaging 24.5 points over his first two seasons in Utah, has earned him All-Star honors and the Most Improved Player award in 2023. Additionally, he is one of only three 7-footers in NBA history to have made 1,000 career three-pointers, joining the likes of Dirk Nowitzki and Channing Frye.
Despite his invaluable contributions, the Utah Jazz have kept the door open to trade offers since the transactions leading up to the 2024 trade deadline. The team's high asking price reflects Markkanen’s immense value both on and off the court.
Renegotiation Opportunities
Starting August 6, the Jazz can renegotiate Markkanen’s $18 million salary to as high as $42.2 million for the current season, followed by a potential four-year extension. This scenario would bring the total contract value to approximately $232 million over the next five years. Alternatively, the team can 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 been strategic this offseason. Despite possessing $37 million in cap space, the team has only signed its 2024 first-round picks—Cody Williams and Isaiah Collier—since July. They also drafted Kyle Filipowski in the second round and reportedly reached agreements with free agents Drew Eubanks and Johnny Juzang. However, Eubanks, Juzang, and Filipowski remain unsigned, preserving the Jazz’s cap flexibility to renegotiate Markkanen’s contract.
Utah’s current commitments amount to $103 million in salary, requiring at least $23.7 million more in spending to comply with the 2023 CBA rule, which mandates teams to spend 90% of the salary cap by the regular season start date on October 22. Non-compliance would result in forfeiting the luxury tax distribution the team would receive at the season’s end.
Rising Talent and Trade Rumors
Looking towards the upcoming season, the Jazz anticipate significant contributions from seven picks over the past three drafts, including guard Keyonte George, forward Cody Williams, and center Walker Kessler. The organization retained veterans like guard Jordan Clarkson, a holdover from the Donovan Mitchell and Rudy Gobert era, during a flurry of trade deadline activity.
Among the most aggressive suitors for Markkanen thus far have been the Golden State Warriors. Preliminary discussions to pair Markkanen with Victor Wembanyama in San Antonio did not progress significantly. Additionally, the Sacramento Kings showed interest but eventually opted to acquire DeMar DeRozan via a sign-and-trade deal. Teams like the Oklahoma City Thunder and the Houston Rockets, both armed with substantial draft capital, could potentially outbid other franchises if they decide to pursue Markkanen intensely.
Markkanen has expressed a desire to remain with the Jazz, stating, "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 his contract, the Utah Jazz are positioned to make strategic financial decisions that could significantly impact the team’s future and competitive landscape for seasons to come.