As the NBA trade deadline approaches, the league’s rumor mill is heating up - and while the spotlight might be on the possibility of a seismic move involving Giannis Antetokounmpo and the Milwaukee Bucks, there’s a quieter but still important storyline unfolding in Denver.
The defending champion Nuggets aren’t expected to make a splashy move before the February 5 deadline. But make no mistake: they’re active. According to league insiders, Denver is likely to execute a smaller transaction aimed at ducking just under the luxury tax line - a move that’s both financially strategic and roster-conscious.
Right now, the Nuggets are hovering about $500,000 above the tax threshold. That may not seem like much in NBA dollars, but for a team trying to avoid the repeater tax and maintain future flexibility, it’s significant. The expectation around the league is that Denver will look to trim salary without touching anyone in their core rotation - a delicate balance that’s easier said than done.
Here’s the catch: only two teams - the Brooklyn Nets and Utah Jazz - currently have cap space available. That means if Denver wants to offload salary, they’re going to have to work with limited partners, and the price for doing business may be steeper than anticipated. Other teams can technically absorb salary if they’re under the first luxury tax apron (which applies to most of the league), but many of those teams are hard-capped or unwilling to take on money unless there’s something valuable attached.
And that’s where Denver’s situation gets tricky. The Nuggets don’t have a ton of expendable assets or bloated contracts just lying around.
Zeke Nnaji’s $8.1 million deal is the most obvious candidate if they’re looking to shed money, but any team taking on that deal - which still has two years left - is going to want compensation. Picks, young talent, or both.
If Nnaji doesn’t move, the Nuggets could look at smaller contracts like Julian Strawther ($2.67 million) or Hunter Tyson ($2.22 million), but those numbers don’t offer much in terms of tax relief. And if the goal is to not only get under the tax but also convert two-way player Spencer Jones to a full-time deal, Denver’s front office is going to have to thread the needle financially.
There’s also a longer-term wrinkle developing in the background: Peyton Watson.
The second-year wing has been a bright spot for Denver during a stretch of the season marred by injuries. He’s stepped into a bigger role and delivered - and now, rival teams are starting to take notice. According to league sources, there’s growing curiosity around the league about whether the Nuggets will be able to retain Watson this summer, when he hits restricted free agency.
Watson’s breakout month has turned heads, and teams with cap space - including the Lakers, who just so happen to be based in his hometown of Los Angeles - are already preparing to make a run at him. That puts Denver in a tough spot.
With Nikola Jokic and Jamal Murray already on max deals, and Aaron Gordon, Christian Braun, and Cam Johnson all factoring into the team’s financial picture, something has to give. If Watson continues his upward trajectory, he could command a sizable offer sheet - one that might be tough for Denver to match without triggering a massive luxury tax bill.
So while the Nuggets’ deadline moves may be minor in the short term, they’re part of a larger puzzle. This is a team trying to stay competitive at the top of the West while managing a cap sheet that’s getting tighter by the year. The decisions they make over the next week - and the ones they’re forced to make this summer - could shape the next phase of their championship window.
For now, expect Denver to make a move. It may not dominate the headlines, but it’ll be one worth watching.