Markkanen Poised for Major Payday: Jazz Forward Enters Exclusive Club
In a pivotal moment for both player and franchise, Utah Jazz forward Lauri Markkanen is now eligible for a significant contract renegotiation and extension. This eligibility places him among an elite group of just 13 NBA players since 2010 to have the potential to restructure their current salary for more favorable terms.
Markkanen's current stint with the Jazz marks the final year of a four-year, $67.5 million contract that he originally signed in 2021. Since then, his value has soared, affirming his position as a cornerstone in the Jazz's lineup. Having become a prominent figure following his trade from the Cleveland Cavaliers in 2022—a deal that was part of a three-team exchange that initially involved Derrick Jones Jr. and several draft picks—Markkanen has proven to be integral to the team’s dynamic.
With the departure of Donovan Mitchell, Markkanen's role has only expanded. His $18 million salary for the season is widely regarded as the best value in the league for any All-Star player who isn't on a first-round rookie scale contract. His stellar performance, averaging 24.5 points over his first two seasons in Utah, didn't go unnoticed as he earned All-Star honors and won the Most Improved Player award in 2023. Furthermore, Markkanen added another unique accolade to his resume, becoming one of only three 7-footers in NBA history to make 1,000 career 3-pointers, joining the ranks of legends Dirk Nowitzki and Channing Frye.
Despite his undeniable value, the Jazz have kept an open door to trade offers since the flurry of activity leading up to the February 2024 trade deadline. The high asking price they set reflects Markkanen’s worth 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 said, indicating his desire to remain with the team.
Effective August 6, the Jazz can renegotiate Markkanen's $18 million salary up to $42.2 million for the current season, followed by an extension of an additional four years. This renegotiation could elevate the total value to approximately $232 million over the next five years. Another option being considered by the Jazz would increase his salary to $33.1 million, with a subsequent four-year extension at a total value of $207.8 million.
These financial manoeuvres come as the Jazz operate within the restricted guidelines of the collective bargaining agreement’s second apron, despite having $37 million in cap space. Utah has been particularly judicious during this offseason, only signing 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 terms with free agents Drew Eubanks and Johnny Juzang. However, Eubanks, Juzang, and Filipowski remain unsigned, ensuring the Jazz preserve cap flexibility to facilitate Markkanen’s contract renegotiation.
With $103 million in committed salary, the Jazz need to allocate at least an additional $23.7 million to meet the 2023 CBA mandate. This rule requires teams to spend 90% of the salary cap by the first day of the regular season on October 22. Failing to meet this criterion would result in forfeiting the luxury tax distribution the team would otherwise receive at the season's end.
Looking towards the upcoming season, the Jazz will also benefit from significant contributions from their seven selections over the last three drafts, including guard Keyonte George, forward Cody Williams, and center Walker Kessler. Remaining active at trade deadlines, the team has retained key veterans like guard Jordan Clarkson, a vestige from the Donovan Mitchell and Rudy Gobert era (2021-22).
Thus far, the Golden State Warriors have been the most aggressive suitors in the race to acquire Markkanen. Preliminary discussions with the San Antonio Spurs to pair Markkanen with Victor Wembanyama, however, did not gain much traction. While the Sacramento Kings expressed interest, they eventually opted to acquire DeMar DeRozan through a sign-and-trade deal instead. Meanwhile, both the Oklahoma City Thunder and the Houston Rockets, armed with substantial draft capital, could potentially outbid other teams if they aggressively pursue Markkanen.
As the Jazz navigate this critical juncture—a path designed to renegotiate and extend Markkanen's contract—they are poised to make strategic financial decisions that will not only secure their roster but could also reshape the team's competitive landscape for years to come.