Philadelphia 76ers restricted free agent forward Paul Reed Jr. has signed a three-year, $23 million offer sheet with the Utah Jazz, his agent, Ron Shade of Octagon Basketball, told ESPN on Saturday.

Reed signed the offer sheet Saturday morning. The Sixers will have until 11:59 p.m. ET Sunday to match and retain Reed or let him go to the Jazz.

One term of the offer sheet contains a unique twist: The first season of the contract is fully guaranteed, while the following two seasons become guaranteed if Reed's team advances to the conference semifinals in 2023-24, sources said. Given where the two franchises stand, it is more likely the Sixers would have to guarantee the $15.7 million total for the 2024-25 and 2025-26 seasons than the Jazz.

If the 76ers match the offer sheet, they would exceed the $165 million luxury tax threshold and incur an additional $14 million in luxury tax penalties. Reed would have veto power on trades for a year if he remains in Philadelphia.

Reed was something of a revelation for the Sixers last season while playing in 69 games -- more than the 64 he played in his first two seasons combined. Reed, the 58th pick in the 2020 NBA draft, ranked in the top 10 in offensive rebounding percentage last season, according to ESPN Stats & Information.

In four starts in 2022-23, including the regular and postseason, Reed averaged 11.8 points and 11.5 rebounds. In his first playoff start, he had 10 points and 15 rebounds in Game 4 against the Brooklyn Nets. Reed was the first Sixers player to score 15 points in his postseason debut since Samuel Dalembert in 2005.

ESPN's Bobby Marks contributed to this report.