Let’s be honest — locking in Nikola Jokic with a $212 million extension feels like a no-brainer. The guy’s the heartbeat of the Denver Nuggets, the kind of player who makes you believe in championships just by showing up. But here’s the thing: that mega-contract, while securing Denver’s best asset, also throws a giant wrench into the rest of the team’s plans. Suddenly, what looked like a smooth ride to the top is starting to look a lot bumpier.

Picture this: Nikola Jokic’s deal kicks in starting the 2027-28 season, and Denver is all-in on Jokic. But now, the Nuggets are staring down the barrel of a salary cap that’s tighter than a drum, and a luxury tax penalty that’s gearing up to be the highest in franchise history. Ouch.

This isn’t just about money. It’s about tough choices that need to happen yesterday. Who stays? Who goes? How do you keep the roster competitive around a superstar who commands such a massive slice of the pie?

What Nikola Jokic’s Extension Means for Denver’s Salary Cap, Draft Picks, and Roster Moves

Right now front office’s top priority has to be locking in Nikola Jokic with that massive contract extension. Nikola Jokic, the heart and soul of the Nuggets, is eligible for a three-year extension worth $212 million—a deal that’s almost a formality given his elite status in the league. As Bobby Marks puts it, “I would expect that to be a no-brainer. You can start negotiating with him once the NBA Finals are over.”

The structure of the extension is significant, with the first year coming in at nearly $66 million. This would replace the player option currently on the table and kick in for the 2027–28 season, running through 2029–30. The deal not only secures Denver’s franchise cornerstone for the long haul but also heavily influences the team’s financial outlook and future roster-building decisions.

And then there’s the money. The salary cap has now ballooned past $201 million—well over the $140.6 million luxury tax threshold. Denver is staring down the barrel of the highest repeater tax penalty in franchise history. Their payroll has already exceeded the threshold by over $11 million, pushing their total tax-affected salary to around $182.6 million. “When you get into their finances—if you’re a repeater tax team—you’re on pace to pay the highest tax penalty in franchise history,” says Marks. That’s thanks to the NBA’s punitive repeater tax system, which imposes steeper penalties on teams that consistently overspend year after year.

Looking ahead, the salary cap is projected to rise by 10% for the 2025–26 season, reaching approximately $154.6 million. The luxury tax threshold is also expected to increase to around $187.9 million. Still, even with this increase, Denver’s payroll—driven by Nikola Jokic’s mega contract and other hefty deals—will likely keep them deep in repeater tax territory. And this isn’t just a numbers game anymore. These financial constraints bleed directly into something much bigger: the roster. Every dollar spent—or saved—now carries massive implications. Suddenly, the pressure isn’t just on the books. It’s on the bodies in the locker room.

Now here’s where things get tricky. Michael Porter Jr.—a scorer who can light it up on any given night—is suddenly the most talked-about trade chip in Denver. But don’t confuse this with a simple buy-low or sell-high move. Porter’s talent is undeniable, averaging 18 points per game over his career. However, he’s sitting on a massive contract—$38 million this season and $41 million next—and rumors are swirling about a possible shoulder surgery. That’s a ticking clock over both his availability and his trade value, making any potential deal a delicate high-wire act.

On the flip side, Christian Braun has quietly transformed from promising rookie to undeniable cornerstone. The guy has been a machine: 77 starts in 79 games, played all 82 this season, and boosted his scoring by more than eight points from last year—joining Dyson Daniels as one of the only players to pull off that feat recently. Braun’s durability and development have turned heads, and the buzz is real: he’s about to cash in, likely earning north of $30 million per year.

Bobby Marks confirms, “Extension candidate to watch? Christian Braun has certainly helped himself. You can check the boxes off—he should get paid. What does ‘getting paid’ mean? Jalen Suggs got five for $150M. I’d think it would be higher for Braun, based on where the cap is going. Career-high in minutes, started 77 of 79 games, third year in a row playing 75+ games—durability. Played all 82 this year. Joined Dyson Daniels as the only player in the past two years to increase their scoring average by more than eight points.”

The Nuggets may have struck gold with Braun, but the rest of the young core is still a mixed bag. “You hit on Christian Braun. The jury is still out on Peyton Watson and Julian Strawther. Jalen Pickett had some decent moments. Hunter Tyson is certainly another player there, so that is going to be a priority,” Marks adds. Peyton Watson has shown defensive promise in stretches but hasn’t quite found his offensive rhythm. Julian Strawther had flashes—like his standout Game 6 against OKC—but consistency remains an issue. And while Tyson impressed in the G League, he’s still unproven at the NBA level. For a team that’s short on draft assets, developing one or more of these guys into real contributors could be the difference between weathering the cap storm and slipping down the Western Conference ladder.

Speaking of draft assets—Denver’s cupboard is painfully bare. That only adds another layer of complexity to the offseason puzzle. The Nuggets already owe their 2025 first-round pick to Orlando as part of the 2021 deal that brought Aaron Gordon to Denver. That means they won’t have a meaningful first-round pick to trade or leverage for nearly a decade. Looking ahead, Denver has just one second-round pick on the books—and that’s not until 2032. To put it bluntly, they’ve essentially mortgaged their future draft flexibility.

And the picture doesn’t get much better beyond that. The Nuggets do still hold a 2026 pick, but they owe Oklahoma City a top-five protected first-rounder in 2027. If that pick conveys, Denver will also owe OKC another first-rounder in 2029, also top-five protected. That chain of obligations means the first real draft asset the Nuggets can move isn’t until 2031 or 2032.

With their draft cupboard bare and salary cap flexibility nearly nonexistent, Denver can’t afford missteps. The margin for error has evaporated — and not just on the roster side. Big changes are already shaking up the foundation, starting at the top. When you’re strapped for picks, cash, and cap room, the only moves left are leadership decisions. And for the Nuggets, that storm hit just before the playoffs.

New Faces, Old Problems: Denver’s Front Office Has No Margin for Error

Picture this: It’s April 8, 2025. There’s just a handful of regular-season games left, and the Denver Nuggets have just fired their head coach Michael Malone — the steady hand guiding them since 2015. It was both shocking and chaotic.

Enter David Adelman: assistant coach since 2017, son of NBA coaching royalty Rick Adelman. He steps in quietly… but brings an undeniable spark. What happens next? The Nuggets win their final three games, snag the No. 4 seed in the West, and suddenly, a team that felt a bit lost finds new life.

But the real drama? That unfolds in the playoffs.

Adelman leads Denver through a grueling seven-game slugfest against the Clippers. Then they push the top-seeded Oklahoma City Thunder to a wire-to-wire Game 7. The resilience was undeniable. Aaron Gordon put it simply: “I love D.A.… I hope he’s here next year.” Jamal Murray praised Adelman’s creative defensive schemes that disrupted OKC’s rhythm. Even Nikola Jokic, typically all business, credited Adelman for shifting the team’s energy, saying he made them “believe something” in mere weeks.

Here’s the bottom line, straight from NBA insider Bobby Marks: “The first is that Denver should lift the interim tag off David Adelman and make him the head coach. I thought he’s done enough with this group—he’s kept his team together, got them out of the first round, and pushed a 68-win team to a Game 7. That’s the first step.”

But Adelman’s status is only part one of Denver’s puzzle. Marks continues, “The second step is figuring out who’s running basketball operations. That’s a huge part of this process.” Enter Ben Tenzer, interim GM and long-time Nuggets insider, who was promoted just weeks ago. “Do you keep it in-house? He’s been there a long, long time,” Marks explains. “Do you bring someone from the outside? It gets a little dicey when you do that, especially when you have Nikola Jokić on your roster.”

So let’s break it down:

• Step one: Make David Adelman the full-time head coach.

• Step two: Decide who’s steering the basketball operations ship — Tenzer or someone else.

While leadership sets the tone, Denver’s real challenge lies in navigating a tricky roster. With big contracts rising talent, and health concerns the Nuggets are deep into luxury tax territory. This offseason isn’t about tweaks; it’s about bold moves or smart bargains to stay competitive in Nikola Jokic’s prime. Striking the right balance now will shape the franchise’s future.

So the question is: can Denver’s front office—whether led by interim GM Ben Tenzer or a fresh face—work through this financial maze without gutting the roster? Will they rely on trades or internal development? With one first-round pick a decade away and Michael Porter Jr. as the lone tangible trade asset, the stakes couldn’t be higher.

The Nuggets stand at a crossroads. Nikola Jokic’s mega-extension ensures the superstar stays, but it also ties Denver’s hands financially. Tough calls on who stays, who goes, and how the front office manages cap chaos will define whether this Nuggets team remains a contender—or fades quietly from the West’s upper tier.

The 2025 offseason isn’t just another date on the calendar. It’s the moment when Denver’s future — and their championship window — hangs in the balance. The clock is ticking, and if the Nuggets don’t act fast and wisely, their shot at glory might slip quietly away.