The Nuggets are choosing to spread Jonas Valanciunas’ remaining cap hit over three seasons, a move that trims the hit on Denver’s books now while pushing a smaller amount into the future.
According to Michael Scotto of HoopsHype, Denver will use the stretch provision on the $2MM cap charge left on Valanciunas’ contract. That money will be divided across three years, creating annual cap charges of $667K. The result is a reduction of $1.33MM on the Nuggets’ 2026/27 team salary.
Valanciunas has already signed with Zalgiris Kaunas in Lithuania after being waived by Denver last month. The Nuggets were left responsible for the $2MM partial guarantee on his $10MM expiring deal, and stretching that amount gives the team a cleaner short-term number.
It doesn’t move Denver out of the danger zone, though. Even after lowering Valanciunas’ cap hit, the Nuggets will still be more than $3MM above the second tax apron.
The real benefit comes on the tax side. Denver sits in the fourth tax bracket and is a repeat taxpayer, so every dollar saved carries a steep penalty reduction. By stretching Valanciunas, the Nuggets are projected to cut their tax bill from about $84.3MM to $75.3MM.
There is a cost attached, naturally. Denver will carry $667K in dead money in both 2027/28 and 2028/29. The team decided the immediate savings were worth taking, even if it means a little extra baggage down the road.
The stretch also means the Nuggets cannot re-sign Valanciunas before the end of the 2026/27 league year, though that was never really on the table once he committed to playing in Europe.
Teams have until the end of August to use the stretch provision on a player’s 2026/27 salary. After September 1, clubs can no longer change a player’s ’26/27 cap hit without a buyout agreement, though the stretch provision can still be applied to cap hits in ’27/28 and later.
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