The Denver Nuggets entered the 2025-26 season with high hopes, looking to build on their core of Nikola Jokic, Jamal Murray, Aaron Gordon, and Christian Braun. With some new additions, the team seemed poised for a deep playoff run.
However, injuries have thrown a wrench in their plans, sidelining key players like Jokic, Gordon, Braun, newcomer Cam Johnson, and breakout star Peyton Watson. The challenge now is to navigate the regular season while keeping the team intact.
Despite these setbacks, the Nuggets have seen unexpected contributions from some of their bench players. But time is of the essence as financial pressures loom. With Peyton Watson's contract set to increase significantly, the Nuggets face a potential dive into the luxury tax to maintain their roster.
To manage their finances, Denver executed a strategic move by trading Hunter Tyson and a future second-round pick to the Brooklyn Nets, aiming to stay under the luxury tax threshold. This maneuver left them $1.8 million below the tax line, allowing them to meet roster requirements by converting Spencer Jones' contract to a standard one, making him playoff-eligible.
Jones has been a revelation, stepping up amid the team's injury woes. The 24-year-old has started 34 games, proving to be a valuable asset with his efficient shooting and versatile defense.
His conversion to a standard contract was an easy decision for the Nuggets, though it only covers the remainder of the season. This leaves him eligible for restricted free agency in the summer, potentially complicating Denver's cap situation further.
Fortunately, with Johnson and Braun returning to health and Julian Strawther's recent performance, the Nuggets have more flexibility in their lineup. This depth allows them to use Jones off the bench, providing a strategic advantage.
As the season progresses, the Nuggets face tough decisions. Christian Braun's recent struggles and Watson's emergence as a dynamic two-way player add layers to their roster strategy. With Watson entering restricted free agency, Denver might need to offer over $20 million annually to retain him, further straining their budget.
One potential solution could involve trading Zeke Nnaji or even Johnson, though both moves come with significant downsides. Johnson's sharpshooting and affordable contract make him a valuable piece, complicating any decision to move him.
The Nuggets might consider letting Braun go to make room for Watson, but maintaining their championship aspirations during Jokic's prime could require embracing the luxury tax, at least temporarily. Winning, after all, can justify the financial sacrifices, especially if it leads to hoisting the Larry O'Brien trophy in June.