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Details On Lauri Markkanen’s New Contract

August 7th 2024 at 4:00pm CST by Luke Adams

The official details on Lauri Markkanen‘s new renegotiated and extended contract with the Jazz are in.

As expected, Utah used its cap room to bump Markkanen’s 2024/25 salary from approximately $18MM all the way up to his maximum (over $42MM). He’ll also receive a maximum salary in the first year of his extension. However, the second, third, and fourth years of the extension will come in a little below the max.

Here’s the year-by-year breakdown:

  • 2024/25: $42,176,400
    • Note: This is up from $18,044,544, for $24,131,856 in new money in 2024/25.
  • 2025/26: $46,394,100
    • Note: This salary is based on a projected $154,647,000 salary cap in 2025/26, which would be the maximum allowable 10% raise. If the cap comes in lower than that, this salary would too (it will be worth 30% of the cap).
  • 2026/27: $46,113,154
  • 2027/28: $49,824,681
  • 2028/29: $53,536,209

In total, Markkanen is projected to earn $238,044,544 over the next five years, including $195,868,144 across his four-year extension that begins in 2025. The deal provides exactly $220MM in total new money.

Given that the Jazz were OK with Markkanen waiting until Wednesday to sign this contract – which makes him ineligible to be traded for the entire 2024/25 regular season – it’s a pretty favorable arrangement overall for the star forward.

Technically, Markkanen could have earned a maximum of $207,845,568 over four years with the Jazz as a free agent next summer, or $199,494,630 over four years if he left Utah for a new team, so his $195.9MM extension comes in a little below both figures. But after taking into account his $24MM+ raise for ’24/25 – which only the Jazz could have offered – he’ll come out well ahead financially over the next five seasons.

As Keith Smith of Spotrac observes (via Twitter), the 2026/27 dip in Markkanen’s deal could open the door for the Jazz to create significant cap room during the 2026 offseason. Outside of Markkanen’s new contract, the only salaries on Utah’s books for that season right now are rookie scale deals.

Here are a few more notes on Markkanen’s lucrative new long-term contract:

  • The Jazz renounced their free agent rights to Talen Horton-Tucker and Kira Lewis in order to create the cap room necessary to renegotiate Markkanen’s contract, per RealGM’s transaction log. The team no longer holds any form of Bird rights on either player.
  • With Markkanen’s deal on the books, the Jazz have surpassed the minimum salary floor and can create up to $11,295,112 in cap space. They’ll need to use a small portion of that room to re-sign Johnny Juzang to his reported four-year, $12MM deal. Utah has also reached a two-year, $10MM agreement with free agent center Drew Eubanks, though the club could complete that signing using the room exception if necessary.
  • Jazz CEO Danny Ainge and general manager Justin Zanik both issued statements on Markkanen in the team’s official press release announcing his extension. “Lauri’s ability to score in multiple ways and his versatility as a player makes our team better,” Ainge said. “He embodies our team’s core values on and off the court. We’re glad that he wants to be a part of our future and what we’re building here in Utah.”
  • Zanik’s statement is as follows: “Lauri’s combination of size, skill, and shooting is really unique, and he’s proved he’s an All-Star level player with his improvement over the past two seasons. We’re excited that he shares the same vision of what our team can be long-term and to have him not only as a building block for the Jazz, but also as a member of the Utah community for years to come, is huge.”
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