Nuggets 2026 Salary Cap Tracker: How Much Room, Flexibility Do They Have This Offseason

The Denver Nuggets are entering a pivotal offseason, as they are coming off just their second first-round playoff exit of the Nikola Jokic era. Of course, there is a positive to making eight consecutive playoff appearances, but they have now fallen short in three straight years since winning the 2021 NBA Finals.

With some changes expected to be made this summer in Denver, we can take a look at their financial situation. How much financial flexibility do the Nuggets have this offseason? In simple terms: none.

Nuggets are hugging the second apron

Denver Nuggets center Nikola Jokic with guard Jamal Murray — Mar 24, 2026; Phoenix, Arizona, USA; Denver Nuggets center Nikola Jokic (15) with guard Jamal Murray (27) against the Phoenix Suns in the second half at Mortgage Matchup Center. | Mark J. Rebilas-Imagn Images

Next season, the Nuggets are set to pay $59 million to Nikola Jokic and $50.1 million to Jamal Murray. Of course, their All-Star duo is the heart of the franchise, but about $109 million to two players is absurd. Then, down the line, they will owe $32 million to Aaron Gordon, $23 million to Cam Johnson, and $21.5 million to Christian Braun.

Denver's starting lineup is combined to make about $185.6 million next season, which is already awfully close to the $201 million luxury tax line. Even without the rest of their roster filled out, the Nuggets are projected to have a salary of around $223 million, sitting right above the second apron of $222 million, per ESPN's Bobby Marks.

https://t.co/Im51BpKV8w pic.twitter.com/mYN0JMC9rf
— Bobby Marks (@BobbyMarks42) May 1, 2026

There are a few ways the Nuggets can save money, as Jonas Valanciunas' $10 million salary is partially guaranteed, Jalen Pickett has a team option, and the team has six pending free agents. However, they will be in a pinch trying to save money and build a championship-caliber roster.

The Peyton Watson dilemma

While the Nuggets have a projected salary of $223 million, that does not include whatever money they might spend on restricted free agents Peyton Watson and Spencer Jones. While they should be able to bring back Jones, who should not demand too much in free agency, Watson's situation is a bit tricky.

Mar 22, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) smiles before the game against the Portland Trail Blazers at Ball Arena. | Ron Chenoy-Imagn Images

As a restricted free agent, the Nuggets have the right to match any offer that Watson receives this offseason. With teams like the Los Angeles Lakers, Brooklyn Nets, and Chicago Bulls reportedly interested in him, there will be no shortage of money thrown around at him this summer. The question becomes, though, will the Nuggets actually match any offer?

The Nuggets could simply let Watson walk and save the $20+ million per year that they would spend on his new contract, but that would be a mistake. Finding other ways to budget, such as trading Cam Johnson or Christian Braun, would be much more worth it in order to bring back Watson, a 23-year-old with unlimited two-way potential.

The Nuggets' front office will be doing what they can to avoid the second apron this offseason, but with these massive contracts on their books and Braun's extension kicking in, it will certainly be a challenge, and bringing back Watson only makes things more difficult.

All in all, the Nuggets have their hands tied financially this summer, but there are some ways they can create some wiggle room for themselves as they try to bounce back from this first-round playoff exit.

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