The Denver Nuggets just completed the sign-and-trade of Peyton Watson and received their only tradeable first-round pick from the Cleveland Cavaliers, a 2031 unprotected pick. Unfortunately, they're probably going to have to part with that pick, and perhaps some of the other second-round picks that the Nuggets have accumulated this offseason almost as soon as they acquired them.
That's because they're still over the second-apron luxury tax penalty threshold, and there's no way another team will absorb their most likely salary dump, Zeke Nnaji, without taking back that new first-round pick. Precedent shows that.
The Nuggets were bereft of tradable draft capital before the offseason started. They had no tradable first-round picks and only two second-round picks available to trade. But between the Watson trade and the draft-night trade with the San Antonio Spurs, the Nuggets added the 2031 Cavs first-round pick and three second-round picks.
Unfortunately, draft picks will be needed to dump Nnaji
Trading Watson to dump Nnaji isn't exactly what the Nuggets may have planned, but it's likely what they'll have done to get out from under Nnaji's bad contract. He's due $7.46 million this season and next via a player option, so it's not like the non-rotation player has a small contract to offload.
And Nuggets' prior precedent shows that a first-round pick could be required to dump the salary. Or perhaps three of the second-round picks. Either way, some draft capital is going to get attached.
Last year, the Nuggets were forced to attach their 2032 first-round pick to Michael Porter Jr. in their trade with the Brooklyn Nets to acquire Cameron Johnson because of the large salary difference for the 2025-26 season. It was the first major salary dump move in what could be a carousel of salary dump moves over the next couple of summers. The difference in salary between the two was about $17 million, so it's within range over the two seasons of what absorbing Nnaji would cost.
My guess is that it would take the first-round pick the Nuggets just acquired from the Cavs to complete the deal, since the dollar amounts are so close.
To move off Reggie Jackson's $5.25 million contract in the summer of 2024, the Nuggets had to attach three unprotected second-round picks. So, just via their own team precedent, what the Nuggets gained this summer in draft capital is as good as spoken for, in some form.
The hope is to dump Nnaji, because the alternative is worse
The Nuggets better hope that they can dump Nnaji for this newfound draft capital. Otherwise, they're going to have to really hurt the roster and unload Christian Braun, Cameron Johnson, or Aaron Gordon to clear the second-apron threshold. The Nuggets are currently $3.15 million over the threshold, per ESPN's Bobby Marks.
So trading Nnaji and draft capital to bring in another veteran on a minimum deal is the best move to not hurt the roster any further this season and get back under the second apron. It's not like Nnaji will crack the rotation anyway.
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