What Are Tim Hardaway Jr.'s Chances of Staying With the Nuggets?

While the Denver Nuggets' biggest free agent entering this offseason is largely considered to be restricted free agent Peyton Watson, another key name is set to hit the open market in Tim Hardaway Jr. after one season in the Mile High.

Hardaway Jr., in a short time with the Nuggets, made his impact felt in a big way as a key component of Denver's second unit–– going as far as landing top-three within the league's Sixth Man of the Year voting at the end of the season.

But now, he's slated to hit the free agent market, where there tends to be some real questions surrounding whether or not the Nuggets will be able to retain him for another year.

So should the Nuggets be worried? To put it bluntly, it'll be a challenge to afford him on next year's roster. And it simply comes down to the financials.

Why Nuggets Are Unlikely to Re-Sign Tim Hardaway Jr.

Hardaway Jr. would be a quality addition to next year's roster, no doubt about it.

His offensive impact off the bench for Denver as one of the best spark plug scorers and shooters in the second unit plugged in perfectly to this top-ranked offense, and turned out to be one of the best acquisitions the team made throughout all of last offseason.

In the 26 minutes a game he played this season, Hardaway was averaging 13.5 points on 44.7% from the field, 40.7% from three, combined with 2.6 rebounds and 1.4 assists a night.

But other teams around the league are well aware of the impact he brought to the table for Denver this past season. And for those that have some extended cap flexibility compared to what the Nuggets have, he becomes an intriguing target to keep an eye on as someone to sign on a bit higher than the veteran minimum, or even as high as the mid-level exception.

Mar 22, 2026; Denver, Colorado, USA; Denver Nuggets guard Tim Hardaway Jr. (10) reacts in the second half against the Portland Trail Blazers at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | Ron Chenoy-Imagn Images

As for the Nuggets, that's simply flexibility they won't have. According to Capsheets.com, Denver is currently more than $16 million over the luxury tax, and is more than $70 million over the cap when including cap holds for Watson and Spencer Jones.

So rather than having the maneuverability to add more veteran talent onto their roster in anticipation for next season, the Nuggets are more likely to shed salary where they can around their current group to get under the tax line, and still have the flexibility to re-sign Watson and Jones. That doesn't bode well for a Hardaway return.

Of course, there's always the chance that Hardaway could take a pay cut from his projected deal to find his way back onto Denver for unfinished business.

Though at the same time, he's now entering te back nine of his career at 34 years old with what might be his last best chance at a big pay day. Passing up on that opportunity would be pretty surprising to see from both Hardaway and his representation.

Nothing's impossible during any NBA offseason. But as of now, it's hard to envision a second season being the most favorable outcome in the mix.

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