The Denver Nuggets have spent much of the offseason trying to navigate the NBA’s new financial landscape, but their penny-pinching approach has sparked a bigger concern: what does the future hold for Nikola Jokić?
Denver recently dealt Peyton Watson to the Cleveland Cavaliers in an $88 million sign-and-trade that netted a 2031 first-round pick and a 2032 second-round selection, but no immediate replacement for Watson. The Nuggets then added DeMar DeRozan, a move that has left many wondering if the front office is truly committed to maximizing its championship window.
Jokić remains under contract for the upcoming season and has repeatedly stated his desire to stay in Denver. However, the team’s shrinking margin for error has become a growing worry, as the three-time MVP enters a pivotal phase of his career and will become a free agent next summer.
The second apron is squeezing Denver’s roster
The second apron has made it increasingly difficult for contenders to keep their cores intact. Denver is hardly alone in facing this dilemma, as several recent champions have also seen key contributors depart after winning titles.
The Nuggets have already lost Bruce Brown, Kentavious Caldwell-Pope, and Michael Porter Jr. since their 2023 championship, with Watson now added to that list. Losing pieces from a title-winning squad is nothing new under the current rules, but the real challenge lies in replacing that talent without creating even bigger problems.
That is where Denver has fallen short. The franchise never found a suitable replacement for Brown, opted not to retain Caldwell-Pope, and later tried to swap Porter for Cam Johnson. In hindsight, Porter turned out to be the better player.
Watson represented another potential source of growth. The athletic young wing had shown flashes of two-way ability, but Denver ultimately decided that paying him $88 million was too steep, especially after committing $125 million to Christian Braun.
Jokić raises the stakes for Denver’s decisions
The choice to let Watson walk becomes harder to justify because of who remains at the center of the Nuggets’ plans. Jokić is still performing at an elite level, and Denver is already carrying a payroll that approaches $300 million.
Keeping Watson would have pushed the team’s 2026-27 payroll beyond $400 million, potentially setting an NBA record. Given Denver’s financial situation and the restrictions tied to the second apron, avoiding another massive commitment was understandable.
The issue is that Jokić changes the calculus. If Denver did not have a player of his caliber, the financial restraint would be much easier to defend. Instead, the Nuggets have a franchise cornerstone who is still capable of leading a contender, even as the team’s margins become increasingly thin.
Denver has also lost Jonas Valanciunas and Tim Hardaway Jr. from last season’s roster. Replacing those departures with Tyus Jones and Marvin Bagley Jr. has done little to convince fans that the roster is trending toward another title.
Jokić’s loyalty depends on Denver’s ambition
Jokić has already given Nuggets supporters reason to believe he plans to stay. Two months ago, he told Serbian media that he wanted to spend his entire career in Denver and would likely re-sign with the team next year.
His decision not to sign a $278 million extension this summer is also not necessarily a red flag. Jokić could reportedly sign for $359 million next summer, making it sensible for him to wait before committing to a new deal.
Still, Denver cannot afford to treat his loyalty as a safety net. Jokić may be comfortable in Denver and unwilling to create public drama, but that should not be mistaken for a lack of competitive fire. He wants to win championships, and the current roster is making that goal increasingly difficult.
The rise of younger Western Conference teams like the San Antonio Spurs and Oklahoma City Thunder has only made Denver’s path harder. The Nuggets remain capable of changing course, but their margin for error has become extremely small.
Denver must find a way back into contention
The Nuggets could still attempt to reshape the roster during the season. A trade involving Jamal Murray or Aaron Gordon could become possible, while the 2031 first-round pick acquired from Cleveland could eventually be used alongside Braun and/or Johnson’s expiring contract to pursue a significant upgrade.
That kind of move could change the outlook considerably, but Denver’s recent decisions have already created frustration among fans. None of the individual moves made since the 2023 championship was necessarily indefensible, yet their combined effect has left the team looking increasingly vulnerable.
The Nuggets therefore face a delicate balancing act. Spending without limits could create an enormous financial burden for a team that may still fall short of contention, but continuing to cut costs risks wasting the remaining prime years of Jokić.
There is still no clear indication that Jokić intends to leave Denver. The more pressing concern is whether the Nuggets can give their franchise centerpiece enough reason to believe that another championship run is genuinely possible. If they cannot, the very loyalty they have relied upon could eventually become something they can no longer take for granted.
