As Lauri Markkanen Becomes Eligible for Extension, Utah Jazz Weigh Future Moves
As of Tuesday, Lauri Markkanen, the standout forward for the Utah Jazz, has become eligible for a significant contract renegotiation and extension. This eligibility places him among an elite group of just 13 NBA players since 2010 who have had the opportunity to 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 value has soared amid his consistent, high-level performance.
Markkanen’s NBA journey has been marked by notable trades and rising stock. Initially part of a significant trade to the Cleveland Cavaliers involving Derrick Jones Jr. and multiple draft picks, he later found himself traded to Utah in 2022. This change proved pivotal, as Markkanen became a central figure in the Jazz’s lineup following the Donovan Mitchell trade.
From the outset, Markkanen delivered performances that redefined expectations. His $18 million salary this season is widely regarded as 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 with Utah, Markkanen earned All-Star honors and was named the NBA's Most Improved Player in 2023.
Notably, Markkanen 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 his significant contributions, Utah has remained open to trade offers since the transaction activity leading up to the 2024 trade deadline in February, although the team’s asking price reflects Markkanen's immense value on and off the court.
The Jazz now face crucial decisions regarding Markkanen’s contract. As of August 6, the team has the option to renegotiate his $18 million salary up to $42.2 million for this season, followed by an extension of an additional four years. This potential renegotiation could bring the total value to approximately $232 million over the next five years. Alternatively, the Jazz could raise his current salary to $33.1 million and extend his contract for four years at a total value of $207.8 million.
Utah has navigated these financial strategies while adhering to the NBA’s collective bargaining agreement (CBA), specifically the constraints of the second apron, despite having $37 million in cap space. This offseason, the Jazz have been particularly strategic, signing only their 2024 first-round picks Cody Williams and Isaiah Collier since July. Additionally, they drafted Kyle Filipowski in the second round and have reportedly agreed to contracts with free agents Drew Eubanks and Johnny Juzang. Eubanks, Juzang, and Filipowski remain unsigned, allowing Utah to preserve cap flexibility while considering Markkanen’s contract.
Currently, the Jazz have $103 million in committed salary, necessitating an additional expenditure of at least $23.7 million to comply with the 2023 CBA rule requiring teams to spend 90% of the salary cap by October 22. Failure to meet this criterion would result in forfeiting the team’s luxury tax distribution at the end of the season.
The upcoming season will showcase 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).
According to sources, the Golden State Warriors have emerged as the most aggressive suitors for Markkanen. Preliminary discussions with the San Antonio Spurs to pair Markkanen with rising star Victor Wembanyama did not gain significant traction. The Sacramento Kings expressed interest as well but ultimately acquired DeMar DeRozan via a sign-and-trade deal. The Oklahoma City Thunder and the Houston Rockets, both with substantial draft capital, have the potential to outbid other teams if they choose to pursue Markkanen aggressively.
Markkanen has expressed a clear preference for remaining with Utah, noting, “We’d love to be here. I’ve said it multiple times. My family likes to be here.” With a clear path to renegotiate and extend his contract, the Utah Jazz are poised to make strategic financial decisions shaping the team’s future and competitive landscape for seasons to come.