The Denver Nuggets just got a lesson in what's likely to come if they decide to duck the NBA's second -apron penalty threshold to avoid a mountain of luxury taxes. The Oklahoma City Thunder dealt away Lu Dort for three second-round draft picks, according to league sources, reports ESPN's Shams Charania.
BREAKING: The Oklahoma City Thunder trading All-Defensive wing Lu Dort to the Atlanta Hawks in a three-team deal that sends three second-round picks to OKC, former No. 1 pick Zaccharie Risacher to the Dallas Mavericks and Ryan Nembhard to Atlanta, sources tell ESPN. pic.twitter.com/4ewUxhRQA5
— Shams Charania (@ShamsCharania) July 19, 2026
The Thunder were in a world of luxury-tax pain heading into this offseason. They had made a series of moves that still left them over the NBA's second-apron penalty threshold, facing a tax penalty of $103 million. That number just shrank to an estimated $19 million, and they are on track to avoid the second-apron, too. But they had to let go of a starter, and a key member of their rotation, not to mention everyone's arch nemesis, Dort, to do it.
Dort isn't just any salary-cap casualty. Dort is a defensive specialist, and only three-second round picks for his specialty seem a bit low, but that's the price of being in such a tough financial situation, it seems. Is that a precursor for the Nuggets if they go the dodge-the-second-apron route?
The Nuggets will likely dodge the second-apron and make a trade
The Nuggets are known to be cheap. They don't have a proper practice facility, and they haven't ever spent a large sum on luxury taxes during the Nikola Jokic era, despite breaking into the luxury tax three times, paying a total of just under $58 million.
That's why it seems highly improbable that the Nuggets are going to bring back not only Peyton Watson, but also Cameron Johnson. That looming tax bill is multiples more than the Nuggets have ever spent. That means the Nuggets, too, are likely looking at losing one of them, or even Christian Braun. It's the unfortunate reality that one of them will likely be traded, unless a big financial change comes from the front office and ownership.
It's the big reason that the sign-and-trade rumors for Watson are getting lobbed around. The Nuggets are willing to get the right amount of first-round draft picks in lieu of going into next year with a crazy high tax bill. And they want a balance of gaining future talent in exchange for giving it up in Watson.
Now that we've seen what the return for Dort was, it's clear why the Nuggets may be listening to those offers. Johnson may only get two or the same three second-round picks at best. The front office is crunching numbers between tax and talent and trying to find the balance of what they're comfortable doing.
But, we all doubt they'll pay the sky-high tax bill. Nuggets fans all wish they would this year. But that seems to be as much of a pipe dream as LeBron James actually picking Denver.
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