Nuggets’ Financial Squeeze Could Force Major Roster Shake Up This Summer.

The Denver Nuggets enter the offseason facing a harsh financial reality that could dramatically reshape the roster around superstar Nikola Jokic. When team president Josh Kroenke recently said “everything is on the table” except a Jokic trade, the comment sent a clear message throughout the organization: no one besides the three-time MVP is untouchable. That includes longtime core pieces Jamal Murray and Aaron Gordon, both of whom have surfaced in league trade speculation as Denver tries to navigate the NBA’s escalating luxury-tax penalties.

Denver’s Payroll Problem

The Nuggets are already projected to carry roughly $213.8 million in salary commitments for the 2026-27 season with only 10 roster spots filled. League projections place the luxury-tax threshold at $201 million, the first apron at $209 million and the second apron at $222 million.

Crossing those lines severely limits roster flexibility under the NBA’s new collective bargaining agreement, and ownership appears determined to avoid becoming a repeater-tax team.

Even modest offseason moves quickly push Denver deeper into financial trouble.

A projected scenario that includes:

• retaining Peyton Watson on a new deal starting around $20 million annually,

• keeping the No. 26 draft pick,

• exercising Jalen Pickett’s team option,

• and filling out the bench with minimum contracts,

would leave the Nuggets near $230 million in payroll — well over the tax line and approaching second-apron territory.

Jonas Valanciunas Likely Headed Out

Veteran center Jonas Valanciunas is widely viewed internally as the easiest salary to remove.

Only $2 million of his $10 million contract is guaranteed, and league sources expect Denver to either waive and stretch the contract or move him in a salary-clearing transaction. There is also growing belief Valanciunas could leave the NBA entirely to pursue opportunities in Europe closer to his native Lithuania.

Stretching the contract would reduce next season’s cap hit to roughly $666,000 annually over three years.

Why Cam Johnson Is the Most Tradable Piece

Among Denver’s sizable contracts, Cam Johnson may be the easiest player to move.

Johnson is owed $23.1 million on an expiring contract, making him attractive to teams seeking shooting help without a long-term commitment. His value as a 43% three-point shooter could allow Denver to recover future draft assets while also cutting salary.

But league executives believe moving Johnson alone won’t be enough.

Even if the Nuggets dump both Johnson and Zeke Nnaji without taking significant salary back, Denver would still sit near the tax line while needing to fill multiple roster spots.

Murray and Gordon Rumors Stem From Economics

That financial pressure explains why both Murray and Gordon have become realistic trade possibilities. Murray is owed more than $50 million next season with three years left on his contract. Gordon is set to make $32 million annually over the same timeframe.

Both players still carry strong league value, unlike some of Denver’s other contracts, meaning they represent the clearest paths toward major payroll relief.

Meanwhile, Christian Braun’s long-term extension may be difficult to move because rival teams remain uncertain about his offensive ceiling and ball-handling development.

Peyton Watson Creates a Difficult Decision

Denver’s front office also faces a complicated decision with restricted free agent Peyton Watson. The 23-year-old wing emerged as one of the roster’s few reliable athletic defenders and secondary playmakers during the season, and several rival teams are expected to pursue him aggressively in free agency. Keeping Watson may ultimately require sacrificing veteran contributors elsewhere on the roster. If Denver prioritizes youth, defense and athleticism around Jokic, league sources believe the Nuggets could move two established starters this summer to make the finances work.

Ownership Faces Pressure

Ownership can argue that resetting the repeater-tax clock now could create financial flexibility for future championship runs during the prime years of Jokic’s next contract extension. But critics around the league counter that every season with Jokic in his prime is too valuable to treat as transitional. After a disappointing first-round playoff exit, Denver now finds itself balancing championship aspirations against financial restrictions — and the result could be the biggest offseason overhaul since the franchise won the 2023 NBA title.