Nuggets rumors: Insider warns fans about luxury tax
Denver Nuggets ownership has been criticized heavily, particularly over the past few seasons, for a perceived lack of interest in spending money. But one team insider is saying that it might be in the team's best interest, not just the owners', to avoid dipping into the luxury tax this season.
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Although the Nuggets controversially let Kentavious Caldwell-Pope walk in free agency a year ago, the Nuggets paid a little more than $200 million total for their roster this past season, according to Spotrac. The players' deals themselves cost about $182 million, but Denver paid around $20 million in luxury tax, which ranked seventh in the NBA.
Following the trade for Cam Johnson, though, ALLCITY's Adam Mares said it could behoove the Nuggets to avoid paying the tax this year.
'Nuggets fans won't love this but it may be wise for the Nuggets to stay below the tax this season and avoid the repeater,' Mares posted on X, formerly Twitter.
'Doesn't mean they are done making moves. But they were almost certainly going to try to get below the tax this year or next.'
In subsequent posts, Mares suggested that they could use other 'maneuvers' to keep adding talent while not adding to their payroll, which ESPN's Bobby Marks projected to be less than $2 million below the luxury tax line of $187.8 million. Potential options to stay under the tax this season are waiving and stretching Dario Saric's $5.4 million salary over three seasons, trading the likes of Peyton Watson for a slightly cheaper option, like the Houston Rockets' Cam Whitmore, or, in a perfect world, trading Zeke Nnaji, who will make $8.2 million this year.
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Marks, in response to Mares' initial post, said, 'You have the $5.7M tax ML if needed. But I would be surprised if Denver pays the tax.'
While the Kroenke family is always able to pay it if it wants, avoiding the tax this year at least would help in driving down costs in subsequent years as well. Being a 'repeater' in the luxury tax brings with it not only the upfront cost of paying more than most teams, but it also carries even steeper financial penalties for every dollar spent over the tax threshold.
This offseason, the Nuggets have already added Johnson (via a trade for Michael Porter Jr.) and the returning Bruce Brown.
Related: Why Nuggets' Michael Porter Jr.-Cam Johnson trade makes them 2026 NBA title favorite
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Related: Brian Windhorst ponders Nuggets' Nikola Jokic contract extension risk
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