As Utah Jazz forward Lauri Markkanen embarks on a significant opportunity for a contract renegotiation and extension, the landscape of the NBA could see a dramatic shift. As of Tuesday, Markkanen has joined a select group of just 13 NBA players since 2010 eligible to restructure their current salary for favorable terms. This development comes at a critical juncture in his career, having seen his stock rise remarkably.
Currently in the final year of a four-year, $67.5 million contract he inked in 2021, Markkanen's value in the league has soared. His journey has included key trades, starting with his transition to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks. Subsequent trades led him to Utah in 2022, where he became an essential component of the Jazz’s roster following the Donovan Mitchell trade.
Markkanen's $18 million salary this season is considered one of the best values in the league for any All-Star player not on a first-round rookie scale contract. His performance has been consistent and impressive, averaging 24.5 points over his first two seasons with the Jazz, earning him All-Star honors and the Most Improved Player award in 2023. He has also distinguished himself as one of only three 7-footers in NBA history to make 1,000 career 3-pointers, joining Dirk Nowitzki and Channing Frye in this elite club.
Despite his considerable contributions, Utah has entertained trade offers as the 2024 trade deadline approaches. The team’s asking price reflects his value on both ends of the court, and they have been strategic in managing their financial landscape. As of August 6, the Jazz have the option to renegotiate Markkanen's $18 million salary up to $42.2 million for this season, with a potential extension for an additional four years. This move could bring the total value of his contract to approximately $232 million over the next five years.
Another financial route the Jazz could take allows them to raise his current salary to $33.1 million and extend for four years at a total value of $207.8 million. These options are weighed carefully within the constraints of the collective bargaining agreement's second apron, despite Utah having $37 million in cap space. The Jazz have been particularly strategic this offseason, signing only their 2024 first-round picks Cody Williams and Isaiah Collier since July, while preserving their cap flexibility for Markkanen's potential renegotiation. Additionally, they have drafted Kyle Filipowski in the second round and reportedly agreed to contracts with free agents Drew Eubanks and Johnny Juzang, who remain unsigned to maintain flexibility.
Yet, the Jazz have $103 million in committed salary and need to spend at least $23.7 million more to meet the 2023 CBA's rule, which requires teams to spend 90% of the salary cap by the first day of the regular season on October 22. This financial strategy ensures they do not forfeit the luxury tax distribution at season's end.
Moving forward, the upcoming season will see significant contributions from seven picks from the past three drafts, including guard Keyonte George, forward Cody Williams, and center Walker Kessler. Utah has remained active in trade discussions, retaining veterans like guard Jordan Clarkson, a staple since the Donovan Mitchell and Rudy Gobert era (2021-22).
Among the most aggressive suitors for Markkanen have been the Golden State Warriors. The San Antonio Spurs also engaged in preliminary discussions to pair Markkanen with Victor Wembanyama, though these talks did not progress notably. The Sacramento Kings expressed interest but ultimately chose to acquire DeMar DeRozan via a sign-and-trade deal. The Oklahoma City Thunder and the Houston Rockets, with their substantial draft capital, remain poised as potential aggressive pursuers should they decide to bid for Markkanen.
Markkanen's willingness to stay in Utah is evident. "We'd love to be here. I've said it multiple times. My family likes to be here," Markkanen has publicly stated. With a clear path to renegotiate and extend his contract, the Utah Jazz are poised to make strategic financial decisions that could significantly shape the team’s future and competitive landscape for seasons to come.