The Utah Jazz signed Paul Reed Jr. to a three-year, $23 million offer sheet, sources told Adrian Wojnarowski of ESPN.

With Reed signing the offer sheet on Saturday morning, the Sixers will have until 11:59 ET on Sunday night to match.

The first season of the offer sheet is fully guaranteed, with the remaining two seasons becoming guaranteed if Reed's team reaches the conference semifinals in 2023-24. 

Should the 76ers match the offer sheet, the team would incur $14 million in luxury tax penalties. Reed would also have veto power on trades for the first year in Philadelphia.