Lauri Markkanen's Contract Extension Potential Could Shape the Utah Jazz's Future
As of Tuesday, Utah Jazz forward Lauri Markkanen is eligible for a significant contract renegotiation and extension, positioning him among a select group of just 13 NBA players since 2010 to potentially restructure their current salary for more favorable terms.
Currently in the final year of a four-year, $67.5 million contract signed in 2021, Markkanen's stock has risen dramatically. His journey has included a significant trade to the Cleveland Cavaliers as part of a three-team deal involving Derrick Jones Jr. and multiple draft picks, followed by another trade that sent him to Utah in 2022.
Since arriving in Utah, Markkanen has been a linchpin in the Jazz’s lineup following the Donovan Mitchell trade. His $18 million salary this season is widely considered the best value in the league for any All-Star player not on a first-round rookie scale contract. Averaging 24.5 points over his first two seasons in Utah, Markkanen earned All-Star honors and the Most Improved Player award in 2023. Notably, he is one of only three 7-footers in NBA history to make 1,000 career 3-pointers, joining the ranks of Dirk Nowitzki and Channing Frye.
Despite Markkanen’s outstanding contributions, Utah has remained open to trade offers since the transaction activity leading up to the 2024 trade deadline in February. The team’s asking price has been high, reflecting Markkanen’s value both on and off the court. Utah is now presented with an opportunity to renegotiate Markkanen's $18 million salary up to $42.2 million for this season, followed by an extension of an additional four years. This move could bring the total value of the contract to approximately $232 million over the next five years. Another option on the table allows the Jazz to raise his current salary to $33.1 million and extend it for four years, with a total value of $207.8 million.
Utah has been particularly strategic 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 contracts with free agents Drew Eubanks and Johnny Juzang. Eubanks, Juzang, and Filipowski remain unsigned, preserving Utah’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 new 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 criterion would result in forfeiting the luxury tax distribution the team would receive at the end of the season.
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. The Jazz have remained active during trade deadlines, retaining veterans like guard Jordan Clarkson, who has been with the team since the Donovan Mitchell and Rudy Gobert era (2021-22).
The Golden State Warriors have been the most aggressive suitors for Markkanen thus far. There were preliminary discussions with the San Antonio Spurs to pair Markkanen with Victor Wembanyama, but those talks did not gain much traction. The Sacramento Kings showed interest as well but eventually opted to acquire DeMar DeRozan via a sign-and-trade deal. The Oklahoma City Thunder and the Houston Rockets, both possessing substantial draft capital, could outbid other teams if they choose to pursue Markkanen aggressively.
With a clear path to renegotiate and extend Markkanen's 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. Markkanen himself appears enthusiastic about the possibility of staying in Utah, stating, "We'd love to be here. I've said it multiple times. My family likes to be here."