Hoops Rumors examines the 2026 offseason for all 30 NBA teams, recapping the summer’s free agent signings, trades, draft picks, departures and more. We’ll take a look at each team’s offseason action and take a look at what else could happen before the regular season begins. Today we focus on Denver Nuggets.
Signing free agents
- Spencer Jones: Two years, $11,750,000. Full warranty. Match the Thunder’s offer letter using Early Bird rights.
- Marvin Bagley III: Year, minimum wage. Full warranty. Signed using the minimum wage exemption.
- DeMar DeRozan: Year, minimum wage. Full warranty. Signed using the minimum wage exemption.
- Alpha Dial: Year, minimum wage. Full warranty. Signed using the minimum wage exemption.
- Tyus Jones: Year, minimum wage. Full warranty. Rewritten using the minimum wage exemption. They gave up the right of veto on trade.
- Lonnie Walker IV: Year, minimum wage. Unguaranteed (Exhibit 9). Signed using the minimum wage exemption.
Trades
- Acquired the #35 pick in the 2026 draft, the Timberwolves’ 2028 second-round pick and the Kings’ 2031 second-round pick from the Spurs in exchange for draft rights Tarris Reed Jr (Choice #26).
- Acquired the Cavaliers’ 2031 first-round pick and the Kings’ 2032 second-round pick from the Cavaliers and Julian Rees (two-way) from the Wizards in a five-team trade in exchange for Peyton Watson (sign and trade; cavalier) and draft rights to Ishmael Kamagate (to the gentlemen).
Drafts
- 2-35: Trevon Brazile
- Signed to a four-year, $9,264,648 contract with the use of the second-round exception. Third year without warranty. Fourth-year team option.
- 2-49: Bryce Hopkins
- A bilateral contract was signed.
Two-sided signatures
- Bryce Hopkins
- One year, $91,000 partially guaranteed (will increase to $339,441 at the start of the regular season).
Note: Nuggets have been moved KJ Simpson under a bilateral contract from 2025/26.
Abandoned/Unsigned Free Agents
Other moves are listed
Salary cap situation
Note: Numbers are rounded to one decimal place.
- Working on the second tax apron ($221.7 million).
- There is no hard cap.
- Team salary: $219.2 million (tax); $224.8 million (apron).
- Above the luxury tax line by $18.8 million; over the second apron for $3.2 million.
- The exemption for middle-class taxpayers ($6.1 million) is not used, but is not available as long as the salary is above the second apron.
- Two traded player exceptions are frozen/unavailable (the largest is worth $10.2M).
Offseason yet
The Nuggets entered the offseason in an unenviable position with a dearth of draft assets, several players coming off injury-marred seasons and a payroll projected to far exceed the second tax apron.
Further complicating matters is the fact that they had a disappointing playoff run, getting eliminated in the first round by division rival Minnesota despite entering the postseason as the No. 3 seed in the Western Conference. Injuries were a factor for both teams in the series, with Anthony Edwards (knee), Donte Di Vincenzo (torn Achilles in game 4), Peyton Watson (hamstring) and Aaron Gordon (hamstring) among the key players who missed time.
Denver’s concerns about the second apron have been heightened because the team is in compliance “Repeat” tax rate. for being a taxpayer for three consecutive years from 2022 to 2025. To be clear, the Nuggets didn’t exactly spend lavishly over those three seasons, with their tax bills ranging from $17.3 million to $20.4 million each year. Eric Pincus of Sports Business Classroom. The team fell below the luxury tax threshold last season and will need to do so again in 2026/27 to reset the relay clock.
In addition to all of these unattractive factors, the Nuggets also entered the offseason with two restricted free agent forwards who had varying degrees of breakout seasons in 2025/26: Spencer Jones and Watson.
The front office made it clear during the draft that it was focused on the team’s payroll as the Nuggets fell out of the first round, sending the No. 26 overall pick (Tarris Reed Jr) to San Antonio for the 35th pick (Trevon Brazile) and two future participants of the second round. It’s important to note that Reed will make $3.1 million this season, while Brazil signed a rookie-minimum deal that carries a cap hit of $1.36 million through the 2026-27 season.
The Nuggets’ second addition in the 2026 draft, the 49th pick Bryce Hopkinseventually signed a two-way contract with Denver. He’s worth keeping an eye on as a player who could be bumped up to the standard minimum salary down the road, as he would also have a $1.36 million cap hit in that case.
Several roster moves were made while the Nuggets battled over the contracts of Jones and Watson. Sixth Man of the Year finalist. Tim Hardaway Jr quickly signed with Miami; the team waived the veteran center Jonas Valanciunas and later used the stretch clause to spread a $2 million partial guarantee over the next three seasons; Denver declined to make a qualifying offer Jalen Pickettwho later signed a two-way contract with the Clippers; and the Nuggets decided not to re-sign the contract Bruce Brownwhich remains in the open market.
In addition to these key departures from the bench, the Nuggets are back Tyus Jones on the veteran minimum contract; – added the big man Marvin Bagley III replace Valanciunas; and signed a contract with Euroleague standout Alfa Diallo. All three-year, minimum-salary deals are fully guaranteed.
Jones became the first domino in restricted free agency, signing a two-year, $11.75 million offer with Oklahoma City. That contract carries a starting salary of $6 million through the 2026-27 season and officially pushed the Nuggets to the second apron after they exercised their right match this.
The Nuggets were long expected to seek a trade Cameron Johnson is it possible Christian Brown this summer in an attempt to keep Watson in restricted freedom. While the team according to reports listened to offers for Johnson, he ended up staying, signaling that Watson’s time in Denver may be coming to an end.
It was clear from the start of free agency that there was a significant valuation gap between the Nuggets and Watson, with the team reportedly offering a four-year contract worth about $70 million (including a team option for the fourth year) and Watson reportedly seeking $25 million or more annually.
The problem with Watson is that only a handful of teams have worked with the room this summer, and none seem to have seriously pursued him, limiting his impact in contract negotiations. Several teams have indeed expressed interest in the former No. 30 overall pick, but sign-and-trade scenarios are notoriously complicated.
However, Watson and the Nuggets eventually found a deal to their liking. Watson signed a four-year, $88 million contract with the Cavaliers (including a fourth-year player option) as part of a five-team deal in which Denver received Cleveland’s unprotected 2031 first-round pick and Sacramento’s 2032 second-round pick from the Cavs.
With Watson’s RFA resolved, Denver turned its attention to the free agent forward DeMar DeRozan and convinced the six-time All-Star to join the Nuggets on a one-year, minimum-salary deal.
Next
The Nuggets currently have 14 players under guaranteed standard contracts Lonnie Walker IV on a non-guaranteed Annex 9 deal for training camp. Given Denver’s financial situation, the veteran guard, who has spent most of the last two seasons overseas, looks very unlikely to make the regular season roster.
With 17 players currently on the roster, the Nuggets are still four spots short of the offseason cap and will be traveling through training camp invitees in the coming weeks. They also have an open two-way slot.
Denver doesn’t currently face a hard cap, which is important because the team is still working on a second apron worth about $3.15 million. The Nuggets’ projected luxury tax is currently $75.29 million per person Yossi Gozlan of CapSheets.com.
While they remain on the other side, the Nuggets will face some roster restrictions, including not having access to the $6.1 million mid-level taxpayer exception and the $10.2 million tradeable player exception they created in the Watson deal.
The Nuggets were reportedly unhappy with Watson’s camp for being cautious with the young forward before free agency. He missed several weeks of the season with a Grade 2 hamstring strain and aggravated the injury in his fifth game in early April, causing him to miss the playoffs. Denver reportedly believed Watson could play in the first-round loss to Minnesota. Watson’s camp pushed back against the claim.
In any case, the result was largely disappointing. The Nuggets are said to be “thrilled” to land an unprotected first-rounder from Cleveland after a complicated RFA process, but the pick doesn’t make the team any better in the short term.
Denver essentially replaced Watson, Hardaway, Valanciunas and Brown with DeRozan, Diallo, Bagley and (maybe, but probably not) Walker. Not good for a team in need of an overhaul.
While Johnson reportedly remains in the team’s plans for now, it will be interesting to see if that changes before the February trade deadline. Terminating the contract, which has unlikely incentives, could put Denver well below the tax line, depending on the structure of a theoretical cost-cutting deal.
Johnson is also eligible for an extension, but I have a hard time envisioning a deal being done before the season starts. He will be eligible for an extension until June 30, 2027, so there is no reason to rush it from the team’s perspective.
Of course, the biggest question hanging over the Nuggets is the future of the three-time MVP Nikola Jokic. The Serbian center declined to sign contract extensions in both 2025 and 2026 and will be an unrestricted free agent next summer when he opts out of his $62.84 million player option for 2027/28.
Jokic has consistently stated that he wants to be a “nugget” forever, but until the 31-year-old officially puts pen to paper, he will be the subject of rampant speculation in the coming months. Several contending teams plan to have significant roster spots next summer and would undoubtedly love to have one of the best players of their generation on their roster.
Will the Nuggets use this first rounder from Cleveland to upgrade their roster? Time will tell. But now they look further away from championship contention than at any time since they won their first NBA title in 2023.
LuKe Adams contributed to this article.
