After a summer filled with trade speculation, Jazz All-Star forward Lauri Markkanen becomes eligible to sign a long and lucrative extension with Utah on Tuesday. There are a lot of details worth examining regarding Markkanen’s earning potential on a new contract. But the most important aspect of negotiations between Markkanen’s representation and the Jazz front office — perhaps the most critical element of Utah’s overall team makeup — is simply the date on which Markkanen actually puts pen to paper.
Utah has every incentive to extend Markkanen a long-term offer sheet this week, or the Jazz would risk allowing the 27-year-old to play out the final year of his current contract and test the open market next summer as a free agent. Securing Markkanen for multiple seasons could also increase his future trade value in one respect, as any team that acquired Markkanen before he became extension eligible this week would likely seek assurances of his interest in returning to sing with that new organization.
But if Markkanen waits to sign his new contract until Wednesday or later, Markkanen will not be eligible to be traded during the upcoming 2024-25 season. He would not be eligible to trade for six months following his new deal, according to the collective bargaining agreement, which would fall one day after the Feb. 6 trade deadline. It was equally crucial for Cavaliers center Jarrett Allen to sign his extension on Aug. 2, making him available for trade four days before the deadline.
All indications, however, are that Markkanen intends to delay his signing for exactly that purpose, league sources tell Yahoo Sports. Markkanen was traded twice in the span of 12 months, first as Chicago dominated its restricted free agency in 2021. The Bulls eventually moved on from Markkanen via a sign-and-trade that moved the Finnish phenom to the Cavaliers on the currently expiring three-year deal at the end of the season. However, after a strong season with Cleveland, the Cavaliers redirected Markkanen to Utah as part of their massive exit package for Donovan Mitchell in September 2022.
Few players want to face the general uncertainty of moving mid-season, especially those who have enjoyed new stability for the first time in their careers. That was the same word about Portland forward Jerami Grant, sources said, despite rival teams’ interest in the veteran Trail Blazer. Markkanen has already expressed his family’s interest in staying in Utah during his exit interview this spring.
“We love being here,” Markkanen said. “I’ve said this many times and my family enjoys being here.”
Markkanen, then, can essentially retire from the trade scene until next summer. This would resonate across the league market, as several teams like Golden State and Sacramento have made legitimate efforts to acquire Markkanen since the start of free agency, sources said. San Antonio had harbored interest in Markkaken since he was a restricted free agent, according to league sources, and the Spurs were already hoping to bring him back to San Antonio in the sign-and-trade that sent DeMar DeRozan to Chicago the same summer as Markkanen. . 2021 restricted free agency. Oklahoma City also expressed preliminary interest at that time, sources said, but the Thunder have since drafted Chet Holmgren and executed an engine-revving move in the frontcourt by signing center Isaiah Hartenstein this free agency period.
The Kings made significant progress in negotiations with the Jazz this summer, sources said, which ultimately fell apart in early July. Utah has made it clear it prioritizes second-year guard Brandin Podziemski over Golden State’s Jonathan Kuminga, sources said, although the Warriors have projected both players to be starters next year.
And yet, for a Jazz team that already holds a surplus of nine first-round selections and trades through 2029 thanks to the mammoth accomplishments of Mitchell and Rudy Gobert in Utah, it had to ask itself whether a package of multiple debuts and a rookie coming off a promising first season outweighs the value of drafting a bona fide All-Star who wants to be in Salt Lake City and hasn’t yet reached his prime. Outside of Sacramento, much of the trade talk in Utah surrounding Markkanen this summer has seemed preliminary at best.
Markkanen might be the closest franchise idea the Jazz could acquire in the near future. He took on the challenge of leading the Finnish national team and embraced the same identity at Utah under coach Will Hardy. The NBA trade market is also quite unpredictable. A year ago, Mikal Bridges was considered prohibited from trading in Brooklyn. When the time is right, Utah can participate in any trade conversation if the price is right and try to surround Markkanen with veteran talent when they become available. The Jazz did scour the market for ways to add Markkanen this summer, sources said, including trying to sign Bridges and other players before hoping to present an offer to Paul George. Utah still has veterans like John Collins, Jordan Clarkson and Collin Sexton earning significant salaries that could serve as cash outflows in any trade package.
If there’s any further indication of Utah’s plan to build around Markkanen at the moment, consider the Jazz sending a group of coaches, including assistant Sean Sheldon and player development staffer Chris Jones, to their native Finland, along with guard Jazz sophomore Keyonte George. Utah official social media account posted something almost an entire album of their shared workout. NBA teams have had support staff visiting international players for years, but it’s a noteworthy step a week before Markkanen can put pen to paper.
This document, it appears, will be a renegotiation and extension of Markkanen’s current deal, which would allow Utah to increase his 2024-25 salary up to $42,176,400, which represents 30% of the salary cap. A simple extension would limit Markkanen to earning just 140% of his $18.04 million worth this season. It’s a similar mechanism to what Sacramento did for All-Star center Domantas Sabonis a year ago, and Utah saved more than $35 million in cap space and thus helped stall the free agent market overall. To further position themselves to reward Markkanen, the Jazz also did not officially sign third-year guard Johnny Juzang or backup center Drew Eubanks. And they will still need to waive Talen Horton-Tucker and Kira Lewis, who carry cap hits of $20.9 million and $17.2 million, respectively.
The Jazz could get tricky and then reduce Markkanen’s 2025-26 second-year salary by as much as 40%, as Orlando did this summer with Jonathan Isaac, but Markkanen is likely in line for a much larger payday that shows annual increases commensurate with the best in the game.
Markkanen’s four-year max under those parameters would put him at about $188.95 million, according to cap projections provided to Yahoo Sports, which would be close to the massive Pascal Siakam deal he signed with Indiana this summer . A five-year maximum for Markkanen would approach $250 million.
From there, cap strategists suggest Utah could still be active in free agency. Depending on Markkanen’s final number, the Jazz project will have about $10 million in cap space, as well as access to the $7.983 million mid-level exception. From there, Markkanen and Utah’s futures, together or separately, have a season of upheaval ahead of them, as the Jazz owe a protected top-10 pick in 2025, first to OKC in what is considered a loaded draft, and a Western Conference even more loaded. presents an uphill battle for Utah to compete in.
