Lauri Markkanen's Contract Future with the Utah Jazz: What Lies Ahead?
As of Tuesday, Utah Jazz forward Lauri Markkanen is eligible for a significant contract renegotiation and extension, a milestone that places him among an elite group of just 13 NBA players since 2010 with this rare financial opportunity.
Markkanen, who is currently in the final year of a four-year, $67.5 million contract initially inked in 2021, has experienced a dramatic rise in his career stock. His journey involved a notable trade to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks. This was followed by another trade in 2022 that sent him to the Utah Jazz, where he became a linchpin after the Donovan Mitchell trade.
This season, Markkanen's $18 million salary is viewed as one of the best values for any All-Star player not on a first-round rookie scale contract. His remarkable performance, averaging 24.5 points over his first two seasons in Utah, earned him All-Star honors and the title of Most Improved Player in 2023. Additionally, he is one of only three 7-footers in NBA history to make 1,000 career three-pointers, joining the ranks of Dirk Nowitzki and Channing Frye.
Despite Markkanen's invaluable contribution, the Jazz have been open to trade offers even since the activity leading up to the 2024 trade deadline in February. The high asking price reflects Markkanen’s significant value both on and off the court.
Starting August 6, the Jazz can renegotiate Markkanen's $18 million salary to as much as $42.2 million for the current season, followed by an extension that could add another four years. This renegotiation could see the total contract value soar to approximately $232 million over five years. Alternatively, the Jazz could increase his current salary to $33.1 million and extend for four years at a value of $207.8 million. Either option would signal the Jazz's commitment to retaining one of the league's most promising forwards.
The team has been strategic with its finances, operating within the financial confines of the collective bargaining agreement's second apron, despite having $37 million in cap space. Utah's shrewd offseason saw them sign their 2024 first-round picks Cody Williams and Isaiah Collier. They also drafted Kyle Filipowski in the second round and reportedly agreed to terms with free agents Drew Eubanks and Johnny Juzang, although Eubanks, Juzang, and Filipowski remain unsigned to keep the team's cap flexibility intact for Markkanen's renegotiation.
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 requires teams to spend 90% of the salary cap by the first day of the regular season on October 22. Failing to meet this requirement would lead to forfeiting the luxury tax distribution the team would receive at the season's end.
The upcoming season also promises 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 such as 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 thus far. Additionally, there were preliminary discussions with the San Antonio Spurs to pair Markkanen with Victor Wembanyama, though those talks did not gain much traction. The Sacramento Kings also showed interest but eventually chose to acquire DeMar DeRozan via a sign-and-trade deal. The Oklahoma City Thunder and the Houston Rockets, both with substantial draft capital, could outbid other teams if they decide to pursue Markkanen aggressively.
As Markkanen himself expressed, "We'd love to be here. I've said it multiple times. My family likes to be here." His desire to remain with the Jazz aligns with the team's 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.