Three-time MVP Nikola Jokić became eligible to sign an extension with the Denver Nuggets on Tuesday, but has informed the organization that he will not do so this summer, according to the Denver Post. Instead, Jokić will wait until 2026 to begin those discussions.
The Nuggets’ unique new front office — led by executive vice presidents Ben Tenzer and Jonathan Wallace — presented Jokić’s camp with multiple options and was not surprised by his decision, per the Post. Jokić stands to make significantly more money by waiting.
Here’s a closer look at why Jokić is pushing off extension talks and what it means for the Nuggets as they try to make a push for another title after consecutive second-round exits.
Why is Jokić waiting on an extension?
Jokić, 30, signed a five-year, $270 million supermax extension with the Nuggets in 2022, and remains under contract through the 2027-28 season. Even with his player option for the final year of that deal, the earliest Jokić could become a free agent is 2027. That’s a ways off, but it’s never too early to start thinking about the future with a player of his caliber.
As of Tuesday, Jokić was eligible to sign a three-year, $212 million extension. However, if he waits until next summer he could sign a four-year extension worth about $293 million. That’s not only an additional $81 million but an extra year of security.
The Nuggets would have loved to extend Jokić as soon as possible, but were well aware that he was likely going to prefer to wait.
“We’re definitely going to offer it,” team president Josh Kroenke said in June. “I’m not sure if he’s going to accept it or not, because we’re also going to explain every financial parameter around him signing now versus signing later. To be completely transparent, that’s the way we always are. And then he makes the best decision for himself and his family, and we’ll support him in it.”
What does this mean for the Nuggets?
In terms of this season, not much. Jokić is under contract and the Nuggets hope they can compete for a title after a busy summer highlighted by a Michael Porter Jr. for Cameron Johnson swap. All of that would have been true regardless of whether he signed an extension this year.
Looking further ahead, the answer depends on how committed Jokić is to the Nuggets.
If Jokić is definitely going to sign an extension, the timeline doesn’t matter all that much. If he had signed this year, he would have voided his player option for 2027-28 and tacked on an additional three years at $212 million. If he waits until next year to sign an extension, he would void his player option for 2027-28 and tack on an additional four years at $293 million.
The latter is obviously a much bigger financial commitment for the Nuggets overall, but not on a per-year basis. Regardless, keeping Jokić is worth it no matter the cost.
How the Nuggets reloaded and escaped salary-cap hell in the first 24 hours of NBA free agency
James Herbert
If Jokić’s delay is a sign that he has doubts about his future in Denver, that is a much bigger issue. To this point, though, there is no reason to suspect that his decision is about anything other than money. He has spoke often about his love for the city, and is “very pleased” with the moves the team made during the summer, according to Brian Windhorst.
In addition to acquiring Johnson, the Nuggets brought back Bruce Brown, who played a big role on their 2023 title team, signed Tim Hardaway Jr. and traded for Jonas Valanciunas. Though the latter may end up returning to Europe, the Nuggets have a much deeper team than last season, when they still managed to win 50 games and take the eventual champion Oklahoma City Thunder to seven games in the second round of the playoffs.
What have the Nuggets said about Jokić’s future?
During a press conference in June, Kroenke made the aforementioned comment about offering Jokic an extension as soon as possible. That was overshadowed, however, by a bizarre answer in which he, unprompted, outlined a scenario where the team would have to trade Jokić.
“I think that, for us as an organization, going into that second apron is not something that we’re scared of. I think that there are rules around it that we need to be very careful of with our injury history,” Kroenke said, when asked about the dreaded second apron and how it affects team-building decisions. “The wrong person gets injured and very quickly you’re into a scenario that I never want to have to contemplate and that’s trading No. 15. And so, we’re very conscious of that pushing forward and providing the resources that we can when the moment arrives. But that second apron, is it a hard cap? I’m not 100% sure, but it’s something that teams are obviously very aware of going forward.”
Nuggets president bizarrely brings up Nikola Jokić trade scenario and how it could ‘very quickly’ happen
Robby Kalland
Now a few weeks removed, it remains strange that Kroenke mentioned the possibility of trading Jokić. It is extremely unlikely the Nuggets would ever actually do so, but why even bring it up?
For now, though, the Nuggets’ goal is to keep Jokić around long term and win another championship.
“We have to be really conscious of the margins. We’ve got to be very deliberate. The time is now,” Wallace said ahead of the 2025 NBA Draft. “[Nikola Jokić] is, obviously, a generational talent, and how he elevates the level of play of so many people around him, we’ve got to make sure that we find some more shooting, address some of the defensive concerns, but I think we have both young individuals here that can step up and do that as we continue to develop them, as well as we’ll look outside and see what makes sense.”
The Nuggets’ front office has done its part this summer by adding Johnson, Brown, Hardaway and, if all goes to plan, Valančiūnas. There’s little doubt that Jokić will do his once the new season begins. Whether that will be enough to lift the Larry O’Brien trophy again, however, remains to be seen.
