Nuggets face $3.1 million payroll deadline after rough start

The Denver Nuggets are facing a financial cliff as the 2026 2027 NBA season begins. The team’s starting lineup, led by Nikola Jokic, Jamal Murray, and Aaron Gordon, has survived the offseason intact, but the roster remains the most expensive in the league. Denver is currently exceeding the second apron by approximately $3.1 million. This financial pressure forces the front office to make difficult decisions before the trade deadline on Feb. 11, 2027.

The situation escalated after the team’s first week of play. The Nuggets suffered a 20-point home loss to the Golden State Warriors. That defeat added to the speculation that the core may need to be restructured. Ringer podcaster Zach Lowe recently identified Murray as an unlikely trade candidate. This comment came shortly after the Warriors loss and fueled rumors about the team's direction.

The pressure stems from the team’s inability to shed payroll during the summer. The front office attempted to reduce costs through several moves. They signed Peyton Watson in a sign-and-trade deal and waived and stretched the contract of Jonas Valanciunas. They also added Trevon Brazile and Alpha Diallo at rookie-minimum salaries. Despite these efforts, the team is still waiting to sign a 15th player. These actions were meant to create financial flexibility, but the current salary cap situation shows the stress remains high.

The trade deadline offers a window to fix the payroll. If Denver does not get below the second apron by Feb. 11, 2027, they will face CBA-ordained luxury tax and roster-building penalties. The team is reportedly trying to move Zeke Nnaji. His $7.5 million salary is a hurdle for other teams. He is the highest-paid player on the bench, but Brazile has quickly moved ahead of him in the pecking order. If Nnaji remains, the Nuggets may look at trading Julian Strawther for draft capital. In a worse scenario, a starter could be moved.

The on-court performance is influencing these decisions. In three games, the Nuggets had a minus-4.0 net rating in 63 minutes with their three best players on the floor. Jokic shot less efficiently and was outwitted on rebounds. Murray turned the ball over at a high rate. Gordon struggled to make a defensive impact. However, the team reversed this trend in a win in New Orleans. By the end of that game, the same trio had a season net rating of 6.1. This volatility makes it difficult to determine if the start is a slump or a sign of deeper issues.

President Josh Kroenke stated in May that everything was on the table except trading Jokic. He did not extend the same protection to Murray or Gordon. Murray has been with Denver for 11 years. He ranks sixth among active players in consecutive years with the franchise that drafted him. Only Steph Curry, Draymond Green, Joel Embiid, Devin Booker, and Jokic have more tenure. Murray acknowledged the business side of the sport during the preseason.

"It’s a business at the end of the day," Murray said. He noted his gratitude for being with the team that drafted him for 11 years. He pointed out the rarity of such loyalty in the modern NBA. Gordon agreed with the sentiment. He said Denver Nuggets basketball is in the business of winning. If the starting lineup continues to struggle, that business model is under threat.

The team has other options besides trading a starter. The middle ground involves moving Cam Johnson or Christian Braun. Braun’s value is at an all-time low, with trade partners asking for draft picks. Johnson is on an expiring contract. Trading him would lower this season's luxury tax bill but would not improve future roster flexibility. His absence due to a right ankle injury has exposed a lack of 3-point shooting. Trading him would essentially mean giving up on the current season and starting lineup.

Inside the locker room, panic is minimal. The Nuggets have historically relied on the chemistry of their core. This confidence has sometimes led to lapses in urgency during the regular season. On Monday, Murray admitted that the Golden State Warriors played harder than the Nuggets in their loss. The team is now trying to balance their long-term identity with the immediate financial and performance pressures of the season.