The Jazz have Royce’s rights, it’s up to the Jazz if Royce leaves. If we were going to get a discount in an extension, it would’ve already happened. Furthermore, extending him zaps even the possibility of cap, where not extending him could mean retaining him AND getting a player in free agency.Being just under the salary cap is pretty sub optimal. Unless you can REALLY get under the cap. Losing Royce and Clarkson for whatever we dredge from the river would be pretty silly, especially as the free agent class next year is pretty sorry. We can keep Clarkson (or whatever we flip him for,) keep Royce, sign Favors, and probably something else as Favors probably doesn't command the full MLE. We will have to go over the luxury tax at some point, but I'm not terribly worried about it right now.
We can’t extend Clarkson. If it goes well, the Jazz are likely in the driver’s seat in retaining him, at which point the Jazz don’t have that cap space. But worst-case scenario, they do. If they retain his Bird rights, then they still have the full MLE.
The Jazz could have ~$11 million in cap space plus the room MLE which couldn’t be said previously. It’s just a fact and a good thing. In contrast to the situation we were in with Exum’s bonkers contract, it actually is optimal.