As of Tuesday, Utah Jazz forward Lauri Markkanen has reached a pivotal moment in his NBA career, becoming eligible for a significant contract renegotiation and extension. Such an opportunity places Markkanen among an elite group of just 13 NBA players since 2010 to potentially restructure their current salaries for more favorable terms.
Markkanen is currently in the final year of a four-year, $67.5 million contract initially signed in 2021. His stock has risen dramatically since then, fueled by a standout performance and strategic trades that have seen him evolve into a key player for the Utah Jazz. Originally part of a three-team deal that sent him from the Chicago Bulls to the Cleveland Cavaliers—along with Derrick Jones Jr. and multiple draft picks—Markkanen found himself traded to Utah in 2022. Following the Donovan Mitchell trade, Markkanen quickly became an indispensable asset in the Jazz’s lineup.
This season, Markkanen's $18 million salary is widely considered the best value in the league for any All-Star player not on a first-round rookie scale contract. His consistent performance, which includes averaging 24.5 points over his first two seasons in Utah, earned him All-Star honors and the NBA’s Most Improved Player award in 2023. Moreover, Markkanen has joined an exclusive group of just three 7-footers in NBA history who have made 1,000 career 3-pointers, joining none other than Dirk Nowitzki and Channing Frye.
Despite Markkanen’s considerable contributions, the Utah Jazz have maintained their openness to trade offers since the trade activity ramped up before the 2024 trade deadline in February. Reflecting Markkanen’s incredible value both on and off the court, the Jazz’s asking price has been notably high. As of August 6, the team holds the option to renegotiate Markkanen's $18 million salary up to $42.2 million for this season, followed by a four-year extension. This renegotiation could result in a total contract value of 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, amassing a total value of $207.8 million.
Operating under the collective bargaining agreement's financial constraints, specifically the second apron, the Jazz have been strategic this offseason. Despite having $37 million in cap space, they have only signed their 2024 first-round picks, Cody Williams and Isaiah Collier, since July. They also drafted Kyle Filipowski in the second round and have reportedly reached agreements with free agents Drew Eubanks and Johnny Juzang, although these contracts remain unsigned to preserve cap flexibility for Markkanen’s potential renegotiation.
With $103 million in committed salary, the Jazz still need to spend at least $23.7 million more to meet the 2023 CBA rule, requiring teams to allocate 90% of the salary cap by the start of the regular season on October 22. Failing to meet this requirement would result in forfeiting the luxury tax distribution the team could receive at season's end.
The upcoming season will undoubtedly be significant for the Jazz, with notable contributions expected from seven picks from their 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 became part of the team during the Donovan Mitchell and Rudy Gobert era in 2021-22.
Interest in Markkanen stretches beyond the Jazz’s own strategies. The Golden State Warriors have emerged as the most aggressive suitors thus far. Preliminary discussions have also taken place with the San Antonio Spurs to pair Markkanen with Victor Wembanyama, though these talks have yet to gather significant momentum. The Sacramento Kings showed interest as well but eventually opted to acquire DeMar DeRozan via a sign-and-trade deal. Other teams like the Oklahoma City Thunder and the Houston Rockets, both possessing significant draft capital, could outbid other suitors should they opt to pursue Markkanen more 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 franchise’s competitive landscape for years to come. The forward himself has expressed a strong affinity for Utah, stating, "We'd love to be here. I've said it multiple times. My family likes to be here." This mutual interest sets the stage for a potentially transformative period for both Markkanen and the Jazz.