As Utah Jazz forward Lauri Markkanen becomes eligible for a significant contract renegotiation and extension, he finds himself within an exclusive group of just 13 NBA players since 2010 to potentially restructure their current salary for better terms.
Currently in the final year of a four-year, $67.5 million contract signed in 2021, Markkanen's rise has been meteoric. Initially part of a notable trade to the Cleveland Cavaliers in a three-team deal involving Derrick Jones Jr. and multiple draft picks, Markkanen's journey continued with a subsequent trade to Utah in 2022.
In Utah, Markkanen quickly became a linchpin in the Jazz's lineup following the Donovan Mitchell trade. His consistent performance, which includes 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. Additionally, he is one of only three 7-footers in NBA history to make 1,000 career 3-pointers, alongside legends Dirk Nowitzki and Channing Frye.
Despite his contributions, Utah has remained open to trade offers for Markkanen since the transaction activity leading up to the 2024 trade deadline in February, reflecting his high value both on and off the court. The team's asking price has been steep, which is indicative of Markkanen’s significance to the franchise.
On August 6, the Jazz gained the ability to renegotiate Markkanen's $18 million salary up to $42.2 million for the current season, followed by a potential extension of an additional four years. This renegotiation could elevate the total value to approximately $232 million over the next five years. Alternatively, the Jazz could opt to increase his salary to $33.1 million and extend for four years with a total value of $207.8 million.
Utah’s strategy this offseason has been meticulous, working within the financial constraints of the collective bargaining agreement's second apron despite having $37 million in cap space. This cautious approach has seen them sign their 2024 first-round picks Cody Williams and Isaiah Collier, draft Kyle Filipowski in the second round, and reportedly agree to contracts with free agents Drew Eubanks, and Johnny Juzang. Eubanks, Juzang, and Filipowski remain unsigned, maintaining the Jazz’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 mandates teams to spend 90% of the salary cap by the first day of the regular season on October 22. Failure to comply would result in forfeiting the luxury tax distribution the team would receive at season’s end.
Aside from cap management, the Jazz are poised to leverage significant contributions from their recent draft picks. The upcoming season will see seven picks from the past three drafts, including guard Keyonte George, forward Cody Williams, and center Walker Kessler, stepping up.
Trade Dynamics and Potential Suitors
The Jazz have been active during trade deadlines, retaining key veterans such as guard Jordan Clarkson, who has been with the team since the Donovan Mitchell and Rudy Gobert era (2021-22). However, teams have shown persistent interest in Markkanen. The Golden State Warriors have been the front-runners in pursuing him, while preliminary discussions with the San Antonio Spurs to pair Markkanen with Victor Wembanyama did not gain much traction. The Sacramento Kings also showed interest but ultimately chose to acquire DeMar DeRozan in a sign-and-trade deal.
Both the Oklahoma City Thunder and the Houston Rockets, armed with abundant draft capital, could potentially outbid other teams if they decide to aggressively pursue Markkanen.
A Future in Utah?
"We'd love to be here. I've said it multiple times. My family likes to be here," Markkanen has stated. This sentiment aligns with Utah's potential to solidify his future with the team via a strategic contract extension. The Jazz are on a clear path to renegotiate and extend Markkanen's contract, positioning them to make financial decisions that could shape the team’s competitive landscape for seasons to come.