The Denver Nuggets went into the 2026 offseason knowing they had some salary cap issues, and they could be paying a big penalty if they decide to not make any moves to free up some money.

Multiple players on the Nuggets roster are on big contracts, and with Nikola Jokic having the fourth-largest contract in the league, it makes it harder for Denver to put premier players around him. 

There are two players on the Nuggets who have been rumored to be on the trade market: Christian Braun and Cameron Johnson, and with them being on big contracts, it would make sense to move off one of them to free up cap space and avoid the luxury tax penalty.  

ESPN NBA insider Bobby Marks said that if Denver decides to waive center Jonas Valanciunas and sign free agent guard Peyton Watson to a contract that pays him $25 million per year, Denver would have to pay $177 million because they went over the luxury threshold. 

President and Governor of the Denver Nuggets, Josh Kroenke, came out earlier this offseason and told the media that "everything is going to be on the table" except trading former MVP Nikola Jokic. 

The statement only added more fuel to the fire in terms of trade rumors, but up to this point in the offseason, Denver has stayed put with their current roster. 

Moving off certain players could be difficult this offseason. Christian Braun could be on the trade market, and he has a contract that pays him $25 million annually. While Braun has had some productive moments with the Nuggets, he is coming off a down year offensively, as he only shot 30 percent from long range in 2025-2026. 

Cameron Johnson is also a player who is coming off a down season compared to his last season with the Brooklyn Nets in 2024-2025. The Nuggets are also coming off a season in which they lost in the first round of the playoffs, leaving players on the roster to prove themselves when it matters most. 

Another issue Denver is facing in the midst of the luxury tax penalties is age. Last season, their average roster age was 28.6, making them one of the more experienced teams in the NBA. The Nuggets will likely make a big push to bring back 23-year-old guard Peyton Watson, as youth may be a point of emphasis for them moving forward.

The Nuggets are in an interesting spot where they may continue to make an attempt to compete for a championship along with Nikola Jokic, but the way they build their roster may have to change moving forward.