Keeping a promising young player usually seems like a simple choice. However, it came with one of the league’s heaviest financial consequences for the Denver Nuggets, who have had a disappointing offseason. Their due diligence towards Spencer Jones has set off a dangerous domino effect.

By matching Oklahoma City’s two-year, $12 million offer sheet for Jones, the Mile-High City kept one of its homegrown forwards in restricted free agency but also pushed itself into the “deep” end of tax bills. NBA insider Shams Charania reported that the Nuggets “face a $32 million increase in current luxury taxes ($36M to $68M) and enter the second apron.”

Even though Denver has retained a decent performer, someone they originally signed as an undrafted free agent in 2024, they’ve triggered tough restrictions. It affects far more than the payroll. For starters, according to the 2023 Collective Bargaining Agreement, they risk losing access to several roster-building tools, including the ability to combine salaries in trades, the right to move draft picks, certain trade exceptions, and the ability to send cash in deals.

Denver entered the offseason balancing two big priorities. On one hand, it wanted to preserve the championship core built around Nikola Jokic. On the other hand, it also faced growing financial pressure after committing significant money to several key contributors over recent years.

Following Jamal Murray, Aaron Gordon, and Cameron Johnson (trade), the team extended Christian Braun’s deal with a 5-year, $125 million offer. Now, Jones is also part of that equation. After arriving in 2024, the forward earned the coaching staff’s trust and established himself as valuable depth. He played in 64 games last season, averaging 5.5 points and 3.3 rebounds across 22.1 minutes per game, while shooting 50.4% from the floor and 39.6% from deep.

So, rather than allowing the OKC Thunder to add a young rotational player, the Nuggets chose continuity despite the financial consequences. However, that decision is certainly not the end of their financial misery. Charania also reported that Denver’s next priority is restricted free agent Peyton Watson. Retaining him will strengthen the team’s rotation, but it isn’t easy either, as he continues to draw interest from the Hawks, Bucks, and Clippers.

According to league insider Marc Stein, Watson is considering the prospect of playing next season on a qualifying offer worth $6.5 million. Now, while that appears baffling because the player is leaving millions on the table, there’s a backstory to it. Denver’s initial pitches to him were in the $70 million range over four years. However, Watson was “hoping” to exceed his teammate Braun’s $25 million per year earnings.

Going the qualifying offer route will also allow Watson to potentially explore unrestricted free agency next summer. The Nuggets, who witnessed flashes of brilliance with a career-high 35-point outing against the Washington Wizards and a 30-point game against the Celtics last season, wouldn’t want to reach that uncontrollable stage with Watson.

For now, though, matching Jones’ offer sends a clear message. Despite the Nuggets’ president issuing an unexpected statement earlier this year, the team seems to still value roster continuity.

“I think everything’s on the table, outside of trading Nikola,” Josh Kroenke said after the postseason exit.

However, the reality is that even Jokic hasn’t committed to signing an extension yet. Insider Bobby Marks reported that by waiting until the 2027 season, the Serb will be eligible to sign a five-year, $359.5 million contract as a free agent. He is currently eligible to ink a four-year extension worth $280 million, but Jokic hasn’t gotten down to signing a new deal since his 2022 super-max extension.

Jokic, though, has verbally committed his future to the Nuggets, acknowledging the delay in inking a deal.

“My idea and desire is to stay in Denver. ⁠I’ll probably sign next year,” Jokic said earlier this month. “The decision is strictly business-oriented. My wish is to stay and play for Denver the rest of my career. It’s on them if they want me.”

Meanwhile, they’ve waived Jonas Valanciunas and lost Tim Hardaway Jr and David Roddy. The Nuggets added Marvin Bagley and Alpha Diallo, re-signed Tyus Jones, and drafted two second-rounders, Trevon Brazile and Bryce Hopkins, before the Jones development.

It is a confusing one with the Nuggets. They’ve been making minor moves in the offseason, but their playoff and title hopes will only change if their top five earners remain fit and consistently deliver the value they’re being paid for in game-winning performances.

They haven’t gone past the conference semifinals since winning the championship in 2023. Should this pattern continue, it wouldn’t be surprising if Jokic starts looking elsewhere as well.