Jazz Renegotiate, Extend Lauri Markkanen’s Contract

AUGUST 7: Markkanen has renegotiated and extended his contract, agent Michael Lelchitski confirms to ESPN’s Adrian Wojnarowski. The Jazz have officially announced the deal (Twitter link).

According to Wojnarowski, the agreement actually features $220MM in new money. That works out to a total of approximately $238MM over the next five seasons after accounting for his previous $18MM salary for 2024/25.

That means, in addition to having his salary bumped up to the ’24/25 maximum (just over $42MM), Markkanen has tacked on another $196MM across the next four seasons.

As noted below, based on the NBA’s latest cap projections for 2025/26, Markkanen’s maximum four-year extension would have been worth about $208MM, so his new deal is much closer to the max than Tuesday’s reporting suggested. The extension features no options, Wojnarowski adds.

“They’ve all showed their belief in me, from the ownership to the front office to (head coach) Will (Hardy),” Markkanen told ESPN. “It’s a comfortable environment and those guys’ resumes speak for themselves. I trust in the organization to help grow me as a person and a player, to build our team and I’m ready to take on the challenge.”

Markkanen is now officially ineligible to be traded until the 2025 offseason.


AUGUST 6: Star forward Lauri Markkanen and the Jazz are expected to finalize an agreement on a contract renegotiation and a long-term extension that will be signed on August 7 or later, according to Shams Charania, Tony Jones, and Anthony Slater of The Athletic.

The Jazz will be able to use their cap room to renegotiate Markkanen’s 2024/25 salary ($18,044,544) all the way up to his maximum of $42,176,400, then extend him based off of that number. Extending him based on his previous salary would have limited his maximum extension to about $113MM over four new years, for a total of approximately $131MM over five years.

League sources tell The Athletic that Markkanen’s new deal is expected to be worth upwards of $200MM over the next five seasons (including ’24/25).

Markkanen became eligible for a contract renegotiation on August 6. If he were to sign today, he’d become trade-eligible on February 6, the day of the 2025 deadline. However, multiple recent reports stated that signing on Aug. 7 or later is the more likely outcome, and The Athletic’s latest story confirms that’s the plan.

Because players are prohibited from being dealt for six months after completing a contract renegotiation, the former All-Star will become ineligible to be traded for the entire 2024/25 regular season once he signs.

According to The Athletic’s trio, Markkanen has repeatedly expressed a desire to stay in Utah and wants to be part of the team’s rebuild. The Jazz, in turn, view him as a potential franchise cornerstone who can be part of their long-term plans. The front office reportedly pursued Jrue Holiday in 2023 and Mikal Bridges earlier this offseason in an effort to get Markkanen more help.

Still, Utah had been willing to listen to trade inquiries on the Finnish forward and has had trade conversations with the Warriors, Kings, and Spurs, among other teams, since the offseason began. Sacramento reportedly made progress in negotiations before those discussions collapsed in early July.

Golden State made an offer centered around Moses Moody and several draft assets, including first-round picks, second-round picks, and swaps, per The Athletic. However, the Warriors kept Brandin Podziemski out of their proposal, which was a sticking point for the Jazz and prevented the two sides from gaining any real momentum. Talks between the two teams were most active in early July and have been more infrequent in recent weeks as Golden State became resigned to the fact that a long-term extension for Markkanen was the most likely outcome, league sources tell The Athletic.

Because a contract renegotiation requires cap room, the Jazz are the only team in position to give Markkanen a raise up to his 2024/25 maximum salary this offseason, which also complicated trade talks. Any team that acquired the 27-year-old would likely have had to be comfortable going to unrestricted free agency with him next summer.

The only scenario in which Markkanen could realistically have been both extended and traded before next offseason would be if he signed a new deal today and then was moved on Feb. 6. If Utah had considered it a top priority to ensure Markkanen became trade-eligible at the deadline, the team could have played hardball in extension negotiations, making a lucrative long-term offer that would come off the table as of Aug. 7.

But it benefits the Jazz to lock up Markkanen now to avoid the risk of losing him for nothing in free agency next summer — he’ll still be trade-eligible during the 2025 offseason and could have more value at that time on a four-year contract than he does now on an expiring deal, so this new extension doesn’t necessarily mean he’ll spend the next five seasons in Utah.

For what it’s worth, if The Athletic’s five-year, $200MM estimate includes a $42MM salary for ’24/25, that would mean the four-year extension would be worth about $158MM, which is well below Markkanen’s potential maximum (approximately $208MM). Those figures suggest the Jazz were able to use some leverage to get more favorable terms in later years, though we’ll have to wait for the specific contract details to know that for sure.

Renegotiating Markkanen’s contract to give him a significant raise this season will allow the Jazz to surpass the minimum salary floor ($126.5MM). It’s unclear if the Jazz will officially complete their reported agreements with free agents Drew Eubanks and Johnny Juzang once the Markkanen situation is resolved or if the team will continue to retain as much cap room as possible for now as it explores the trade market for other possible deals.

Markkanen, who was sent to Utah from Cleveland as part of the Donovan Mitchell trade in 2022, has averaged 24.5 points, 8.4 rebounds, and 1.9 assists in 33.8 minutes per game across 121 appearances with the Jazz, recording a shooting line of .490/.395/.885.

Markkanen’s strong play has helped the Jazz remain relatively competitive in each of the past two seasons, especially in the first half. Utah won 37 games in 2022/23 and 31 in ’23/24, which resulted in the team picking no higher than No. 9 in either of the past two drafts.

Securing a higher lottery pick in a loaded 2025 draft is expected to be a priority for the Jazz, so it will be interesting to see how the team manages its lineup and rotation next season. The expectation is that Utah will give its young players, including Keyonte George, Taylor Hendricks, and Cody Williams, significant playing time and lean less heavily on its veterans.

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