The defending NBA champion Denver Nuggets’ early playoff exit has given them more time to address their critical CBA issues. Like many big-spending contenders, the Nuggets entered the postseason walking a financial tightrope.
Denver is challenged with maximizing the remaining three (or four, if he exercises his option) seasons of three-time MVP center Nikola Jokic’s contract while maintaining roster flexibility within a stricter financial framework.
The collective bargaining agreement implemented in July 2023 imposes severe tax and roster manipulation penalties on teams that exceed the “second apron” of the salary cap.
Currently, the Nuggets are one of eight teams projected to surpass the 2024-25 second apron of $189.5 million, according to NBA projections tracked by Spotrac.
It seems evident which direction the Nuggets will take, with guard Kentavious Caldwell-Pope being a key focus this offseason.
“You have a responsibility to him (Jokic),” Denver president Josh Kroenke stated at the Nuggets’ postseason media briefing.
Nikola Jokic and Jamal Murray have been a dynamic force in the Denver Nuggets’ recent success. … [+]
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Recently, the Nuggets have fully embraced that responsibility. They made significant moves to bolster support around Jokic, starting with his initial signing to a four-year, $147 million max contract in 2018, followed by a five-year, $276 million designated veteran extension in 2023.
Next season, point guard Jamal Murray is set to earn $36 million in the final year of his five-year contract. Small forward Michael Porter Jr. will earn $35.9 million on a deal that runs until 2027, and power forward Aaron Gordon is slated to make $23.8 million on a contract with an option for 2026.
However, those contracts were negotiated under a less restrictive CBA, marking a different era. While some teams utilized the 2023-24 season to manipulate their rosters and create cap space in anticipation of the new rules, the Nuggets consciously opted to maintain their core intact as they aimed to achieve a rare feat: becoming the first repeat champion since Golden State in the 2017-18 season to achieve such a feat.
Power forward Aaron Gordon has provided an interior complement in the Nuggets’ offense. (Photo by … [+]
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There were consequences to their decisions. Due to salary cap constraints, the Nuggets couldn’t match Indiana’s two-year, $45 million offer to wing Bruce Brown, a crucial reserve from their 2023 championship team.
Losing Brown, along with veteran role player Jeff Green, weakened their bench noticeably, which was evident in their playoff series loss to Minnesota this season. During the series, the Nuggets’ bench played only 10 minutes per game on average.
To compensate, the Nuggets relied on a youthful group that included rookie draftees Julian Strawther and Jalen Pickett, as well as second-year player Peyton Watson, partly to manage costs after investing heavily in their starters.
“Obviously, perhaps within our top seven, we could benefit from a bit more talent,” noted general manager Calvin Booth. “Maybe there’s room to upgrade one or two positions. But I don’t see anything overly concerning about our roster.”
Nuggets guard Kentavious Caldwell-Pope is among the best defenders in the league. (Photo by Jamie … [+]
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The primary old-money, new-CBA dilemma this offseason revolves around Caldwell-Pope, whose defensive prowess outweighs his 10.1 scoring average. In a league dominated by shooters, Caldwell-Pope held his opponents to a field goal percentage of 40.6% this season according to Second Spectrum, the lowest among players who contested at least 500 shots.
Caldwell-Pope holds a $15.4 million option for the 2024-25 season, which he is expected to decline given the likelihood of securing a multi-year contract at a salary similar to or higher than what Brown received. He must make his decision by June 29.
Should Caldwell-Pope opt out, the Nuggets could re-sign him using their Bird rights, allowing them to match or exceed other offers. However, this would likely push them over the second apron, a situation they did not face with Brown last summer.
“I understand the challenges of the second apron and the various restrictions, but avoiding it isn’t our top priority,” Booth commented. “KCP has been a valuable addition over the past few years. We would love to have him back, and we’ll carefully assess what that entails.”
Guard Christian Braun would be a candidate to start if the Denver Nuggets reshape their roster this … [+]
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If Caldwell-Pope were to depart, the Nuggets’ most probable course of action would likely involve promoting third-year guard Christian Braun to the starting lineup, which would increase the responsibilities of Strawther, Pickett, and Watson in the second unit.
Veteran guard Reggie Jackson holds a $5.25 million option for the 2024-25 season, with a decision deadline of June 25.
Exploring a trade, potentially involving spot-up shooter Porter, could generate additional cap space. However, parting ways with either or both Porter and Caldwell-Pope would disrupt a starting five that has dominated the league in point differential over the past two seasons.
Murray and Gordon are both eligible for extensions, considering Murray’s contract expires after this season and Gordon’s would do the same if he opts out of his $23.8 million option for 2025-26.
“We drafted, developed, and constructed this team under a different set of circumstances,” Kroenke remarked. “Those circumstances have evolved.
“Last summer, it wasn’t as urgent as it’s going to be this summer, given our championship run… We’ll collaborate and devise strategies to continue our upward trajectory.”