As of Tuesday, Utah Jazz forward Lauri Markkanen can rewrite his existing contract terms, setting the stage for a significant renegotiation and extension. Markkanen’s impressive on-court performances have not only solidified his reputation but also presented a unique financial opportunity for both him and the Jazz.
Markkanen joins a notable group of only 13 NBA players since 2010 eligible to restructure their current salaries for more favorable terms. Playing in the final year of a four-year, $67.5 million contract signed in 2021, Markkanen has seen his value skyrocket.
The Finnish forward’s journey in the NBA has been eventful, first making waves when traded to the Cleveland Cavaliers in a three-team deal involving Derrick Jones Jr. and multiple draft picks. The subsequent trade that brought him to Utah in 2022 positioned him as a key player in the Jazz’s lineup, particularly following the Donovan Mitchell trade.
With his $18 million salary this season considered the best value among All-Star players not on a first-round rookie scale contract, Markkanen's consistent performance has been pivotal for Utah. Averaging 24.5 points over his first two seasons with the Jazz earned him All-Star honors and the Most Improved Player award in 2023. Notably, Markkanen is one of only three 7-footers in NBA history to hit 1,000 career 3-pointers, joining Dirk Nowitzki and Channing Frye in this elite category.
Despite his contributions, Utah has been open to trade offers since the transaction activity ramped up before the 2024 trade deadline set for February. The Jazz’s high asking price reflects Markkanen’s immense value both on and off the court.
The Jazz can now choose to renegotiate Markkanen's $18 million salary, increasing it to as much as $42.2 million for the season, followed by an additional four-year extension that could bring the total value to approximately $232 million over the next five years. Alternatively, they could boost his current salary to $33.1 million and extend for four years at a total value of $207.8 million.
Decisions like these are strategically important to Utah as they navigate within the financial constraints of the NBA's collective bargaining agreement's second apron, despite having $37 million in cap space.
Throughout the offseason, Utah has been strategic with their moves, only signing their 2024 first-round picks Cody Williams and Isaiah Collier since July. Adding to their flexibility, the Jazz drafted Kyle Filipowski in the second round and have reportedly agreed to contracts with free agents Drew Eubanks and Johnny Juzang. However, Eubanks, Juzang, and Filipowski remain unsigned to preserve cap space for Markkanen’s potential renegotiation.
With $103 million in committed salary, the Jazz need to spend at least $23.7 million more to meet the 2023 CBA rule requiring teams to spend 90% of the salary cap by October 22, the first day of the regular season. Failing to meet this criterion would result in forfeiting end-of-season luxury tax distribution.
The upcoming season holds promise for 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 emerged as 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 also showed interest but eventually opted to acquire DeMar DeRozan via a sign-and-trade deal. Meanwhile, the Oklahoma City Thunder and the Houston Rockets, both rich in draft capital, could potentially outbid other teams if they aggressively pursue Markkanen.
As the Jazz consider renegotiating and extending Markkanen’s contract, the team's front office faces pivotal decisions that could influence the franchise's trajectory. Markkanen himself has expressed enthusiasm about remaining with the Jazz. "We'd love to be here. I've said it multiple times. My family likes to be here," the forward noted, underscoring his desire to continue as a cornerstone of the team in the years ahead.