Utah Jazz's Lauri Markkanen Awaits Potentially Lucrative Contract Renegotiation
As of Tuesday, Utah Jazz forward Lauri Markkanen finds himself at a pivotal juncture in his NBA career, becoming eligible for a significant contract renegotiation and extension. This milestone places Markkanen among a rarefied group of just 13 NBA players since 2010 who have had the opportunity to restructure their current salary for more favorable terms.
Currently, Markkanen is in the final year of a four-year, $67.5 million contract that he initially signed in 2021. Since then, his value has skyrocketed. His journey has included a trade to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks, followed by another move to Utah in 2022. Quickly establishing himself as a cornerstone in the Jazz’s lineup following the Donovan Mitchell trade, Markkanen has proven to be indispensable.
"We'd love to be here. I've said it multiple times. My family likes to be here," Markkanen has stated candidly, demonstrating his commitment to Utah both professionally and personally.
Markkanen's $18 million salary this season is widely regarded as the best deal in the league for any All-Star player not on a first-round rookie scale contract. His consistent performance has earned him All-Star honors and the Most Improved Player award in 2023, averaging 24.5 points over his first two seasons in Utah. He has also joined an exclusive club as one of only three 7-footers in NBA history to make 1,000 three-pointers, alongside legendary figures Dirk Nowitzki and Channing Frye.
Despite Markkanen’s contributions, Utah has remained open to trade offers since the transaction activity leading up to the 2024 trade deadline in February. The team's high asking price, however, reflects his immense value both on and off the court.
Now, with the opportunity to renegotiate Markkanen's $18 million salary up to $42.2 million for this season, followed by an additional four-year extension, the total value of his potential new contract could reach approximately $232 million over the next five years. Alternatively, the Jazz could opt to raise his current salary to $33.1 million and extend for four years, making the total value $207.8 million.
As the Jazz navigate this complex financial landscape, they must also consider the collective bargaining agreement's second apron limits, despite having $37 million in cap space. They have been particularly strategic this offseason, signing just their 2024 first-round picks, Cody Williams and Isaiah Collier, since July. Kyle Filipowski, drafted in the second round, remains unsigned, as do free agents Drew Eubanks and Johnny Juzang, thus preserving Utah’s cap flexibility to renegotiate Markkanen’s contract.
With $103 million in committed salary, the Jazz needs to spend at least $23.7 million more to comply with the 2023 CBA rule requiring 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 result in forfeiting the luxury tax distribution from the league at the season’s end.
The upcoming season will also see significant contributions from seven draft picks from the past three years, including guard Keyonte George, forward Cody Williams, and center Walker Kessler. Veteran guard Jordan Clarkson, a mainstay from the Donovan Mitchell and Rudy Gobert era (2021-22), remains on the roster, anchoring the team’s experience.
The Golden State Warriors have been the most aggressive suitors for Markkanen thus far. There were also preliminary discussions with the San Antonio Spurs to pair Markkanen with rising star Victor Wembanyama, though these talks did not gain much traction. The Sacramento Kings showed interest as well but ultimately chose to acquire DeMar DeRozan via a sign-and-trade deal.
Looking ahead, the Oklahoma City Thunder and the Houston Rockets, both possessing substantial draft capital, could potentially outbid other teams if they decide to pursue Markkanen aggressively. However, with a clear path to renegotiate and extend his contract, the Utah Jazz are poised to make strategic financial decisions that could shape the team’s future and competitive landscape for seasons to come.