Another high-ranking official in the Kroenke sports empire, Kevin Demoff, had hinted months earlier that Denver\u2019s inclination might be to avoid the luxury tax entirely next season as to avoid paying the NBA\u2019s punitive \u201crepeater tax\u201d rates<\/a>. That was long before the Nuggets revealed to their power brokers that they were nowhere close to championship-worthy.<\/p>\n So, uh, what\u2019s going on in Denver?<\/p>\n More than a week since the league\u2019s free agency period began, most teams have completed their offseason business. The Nuggets have been puzzlingly idle. A few highlights so far: Tim Hardaway Jr. leaving for Miami<\/a> as expected, Jonas Valanciunas getting waived<\/a> for salary cap relief as expected, Marvin Bagley III<\/a> and Tyus Jones<\/a> signing one-year deals.<\/p>\n Something doesn\u2019t add up. As in, it adds up to a sum that continues to leave most NBA observers skeptical. Denver is leaving everyone guessing right now, even other teams.<\/p>\n Should fans be frustrated by the lack of action? Encouraged by it? Or is everything simply on hold?<\/p>\n There are two sides to this to unpack: the financial and basketball perspectives. They\u2019re obviously intertwined, but when trying to make sense of this situation, it\u2019s best to start with the financial side, because that was an obstacle that seemed to be motivating Denver\u2019s roster decisions even before the on-court problems that emerged against Minnesota<\/a>.<\/p>\n Before last season, the Nuggets were choosing between two extension-eligible 2022 draftees who had one year remaining on their rookie contracts: Christian Braun and Peyton Watson. They chose Braun, the more proven player at that point, an efficient 15-point-per-game starter the previous season, and a strong (if flawed) defender. They signed him to a five-year deal that would go into effect in 2026. They felt comfortable taking Watson to restricted free agency and maybe even losing him. Three years into his career, he seemed to be developing into a solid 3-and-D bench player, and maybe not much more than that.<\/p>\n The Nuggets were looking ahead to their 2026-27 payroll and didn\u2019t want to commit large chunks of money to both players. Watson told The Denver Post in October<\/a>:\u00a0\u201cFrom what I understand, it was just a financial business decision. Obviously, with the new CBA and the second apron, things of that nature, they wanted to stay out of that.\u201d<\/p>\n Braun went on to have an injury-riddled season, the worst of his career. Watson had the best season of his career, particularly by showcasing his off-the-dribble ability when Jokic was hurt in January.<\/p>\n And so the Nuggets knew they would be entering the 2026 offseason with six starter-level players whose combined salary would result in a roster payroll above all three tax thresholds: the luxury tax ($200.4 million), first apron ($209 million) and second apron ($221.7 million). They wanted to keep Watson, recognizing the importance of his two-way talent and athleticism. They signaled as much to other teams.<\/p>\n If their previous actions had already indicated they were prepared to sacrifice him to stay under the second apron, then changing course and keeping him would surely mean sacrificing someone else.<\/p>\n This was the foundational logic that led people around the NBA to believe they were almost guaranteed to trade a starter. An oversimplification of the salary cap math looked like this: Lose one of your six starter-level players to get under the second apron, or lose two to duck the tax entirely. Perhaps other creative ways to shed salary would emerge, but this was the basic state of the union. Jon Wallace and Ben Tenzer would be tasked with threading the needle between cutting payroll and improving the roster.<\/p>\n From this perspective, the fact that Denver has not traded any of the six starter-level players yet can ironically be interpreted as an aggressive stance, not a conservative one. The moves that were expected to have happened by now would\u2019ve been motivated primarily by money, not purely by basketball. Could it be that the Kroenkes are going all-in to chase a second championship? Suddenly, in the last few days, there\u2019s been reporting from national media outlets such as The Athletic<\/a> that \u201cDenver\u2019s ownership has not given its front office a mandate to cut costs.\u201d The Post has been told similarly.<\/p>\n But that didn\u2019t seem to be the case three weeks ago when the Nuggets were actively exploring the trade market for Braun and Cam Johnson, as The Post and other outlets reported.<\/p>\n What can it mean? Maybe there\u2019s been a change of heart, and an executive decision has been made to spend lavishly. Maybe it\u2019s connected to the team\u2019s pursuit of LeBron James in free agency<\/a> (how do you even begin to pitch him on coming to Denver if you\u2019re not willing to pay up?), or maybe it\u2019s a reaction to Jokic\u2019s decision to wait one more year<\/a> to sign a new extension. As direct as he was in publicly stating his plan to sign next summer, maybe the pressure of him entering the last guaranteed season of his current contract scared the Nuggets straight.<\/p>\n Maybe this is an earnest, full-throttle statement of championship intent.<\/p>\n Or maybe the abrupt timing of this leakage is a little too convenient.<\/p>\n The Nuggets have multiple reasons to want the rest of the NBA to believe they\u2019re working with a blank check right now. One of those reasons: Watson.<\/p>\n Negotiations have clearly not gone smoothly. The line of demarcation is $25 million. That\u2019s Braun\u2019s average annual value on his new contract \u2014 the deal Denver prioritized over Watson \u2014 and now it\u2019s the number Watson\u2019s camp can fixate on. His side can point to last season and claim that going forward, he is worth the same amount or more. The Nuggets can point to the previous three years and say Braun\u2019s overall body of work is better so far. As this is happening, another team is reportedly lingering, with a desire to poach Watson. The Clippers reside in his hometown, and they\u2019ve already made moves this summer to get younger and clear their books.<\/p>\n Watson is a restricted free agent, meaning the Clippers must extend him an offer sheet, the terms of which Denver can match to retain him. Offer-sheeting a player can be risky because it ties down your cap until the situation is resolved, with no guarantee that you will successfully land the player you\u2019re targeting. The Nuggets are saying behind the scenes that they\u2019re prepared to match any offer sheet. Basically, they\u2019re trying to scare off LA (and any other suitor) by indicating the offer sheet would be a waste of time, and the only real way to get Watson from them is to execute a sign-and-trade, sending Denver other assets in exchange for the right to sign the RFA. Utah just did this with Walker Kessler, who ended up with the Lakers via sign-and-trade. How can you bolster your leverage in a situation like this? By signaling publicly that you\u2019re willing to pay an exorbitant payroll and tax bill to keep Watson and everyone else.<\/p>\n This also sends a message that you aren\u2019t desperate to trade a starter (or two) to keep Watson \u2014 that you\u2019re more than happy to hold on to Johnson, Braun, Aaron Gordon, or Jamal Murray if the offer isn\u2019t strong enough.<\/p>\n If there is a spending mandate, then other teams might look to take advantage with low-ball trade offers.<\/p>\n So maybe the lack of a spending mandate could turn out to be a bluff for leverage. Or maybe it\u2019s a real edict, a genuine commitment to competitiveness at all costs. There\u2019s almost no way to know for sure until the Nuggets take an action to back up their words. For now, inaction has the appearance of aggression, as Denver attempts to feel out the market.<\/p>\n Certainly, it seems like the key domino will be how the Watson dilemma works itself out \u2014 either in the form of a contract extension, or an unmatched offer sheet, or a sign-and-trade, or a begrudgingly accepted qualifying offer ($6.5 million).<\/p>\n ESPN front office expert Bobby Marks (a former NBA executive) projected this week that if the Nuggets retain Watson at a $25 million cap hit and don\u2019t trade any starters, their luxury tax bill next season would exceed $170 million \u2014 an almost unprecedented amount<\/a> that includes second apron and repeater tax penalties. That\u2019s in addition to what the raw roster payroll would be.<\/p>\n Between player salaries and taxes, it would be a $400 million team.<\/p>\n Which finally brings us to the basketball perspective on Denver\u2019s offseason holding pattern. It would be one thing to pay that much if the Nuggets had just lost the NBA Finals in a tight six-game series with their current roster \u2014 if they knew for a fact that a championship was barely out of reach last season.<\/p>\n But the Nuggets didn\u2019t make the Finals. They didn\u2019t win a single playoff series. They lost in the first round to an injured opponent. They weren\u2019t close.<\/p>\n Fans of an NBA team obviously have no obligation to care about the dent in a billionaire owner\u2019s wallet. But it\u2019s also reasonable enough for Nuggets fans to want change this offseason, independent of the financial complications. There\u2019s a fair case to be made that Denver should be pursuing trades purely based on basketball, even if the Kroenkes have decided they\u2019re willing to spend like few owners have ever spent. Perimeter defense, shot creation depth, downhill quickness and frontcourt physicality are all visibly lacking.<\/p>\n It\u2019s just that the reason fans want change might not be exactly aligned with the reason this ownership group would want change.<\/p>\n It\u2019s difficult to imagine the Nuggets feeling satisfied with the results of the last three seasons enough to truly run it back with the same top six players and less depth.<\/p>\n Then consider that those six players are aging. Then consider that the cost of those six players is multiplying.<\/p>\n That\u2019s more than enough evidence to leave you wondering if Denver\u2019s silence is misleading.<\/p>\n![\"Team](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/TDP-L-NUGGETS-TWOLVESA03_3335x.jpg\")
Team President Josh Kroenke walks in a hallway after listening to head coach David Adelman of the Denver Nuggets speaking to members of the media after the Minnesota Timberwolves\u2019 110-98 Game 6 NBA Playoffs series win at the Target Center in Minneapolis, Minnesota on Thursday, April 30, 2026. Minnesota eliminated the Nuggets 4-2. (Photo by AAron Ontiveroz\/The Denver Post)
\nGoing all-in or playing it conservatively?<\/p>\n![\"Peyton](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/07\/TDP-L-NUGGETS-JAZZAO1_9033x.jpg\")
Peyton Watson (8) of the Denver Nuggets roars after dunking against the Utah Jazz during the first quarter at Ball Arena in Denver, Colorado on Monday, December 22, 2025. (Photo by AAron Ontiveroz\/The Denver Post)
\nGauging the Watson market<\/p>\n