The Denver Nuggets were a juggernaut heading into the 2026 playoffs before Minnesota knocked them out in six games during the first round.

It was a tough end to a year where Denver posted the league's best offensive rating, and Josh Kroenke set the tone when he said "everything is on the table, outside of trading Nikola."

For weeks, the assumption was that the Nuggets would shed salary and get below the second apron before matching any offers on restricted free agent Peyton Watson.

Watson put together a breakout year, averaging 14.6 points, 4.9 rebounds, and 2.1 assists across 54 games while shooting 41.1 percent from three before a hamstring injury cost him the final stretch and every playoff game.

Keeping him has been the front office's top priority, and most people figured that would mean dumping contracts to make room.

New reporting from Marc Stein and Jake Fischer of The Stein Line suggests the plan may have shifted.

Jonas Valančiūnas and Zeke Nnaji are the only veteran names floating around as definite trade candidates, and despite all the talk this spring about Denver cutting costs, the Nuggets have not been operating like a team trying to stay below the second apron.

Stein pointed to the Knicks under James Dolan as one that is, and Denver is simply not taking the same approach.

That is different from just a few weeks ago, when the front office was reportedly attaching Nnaji's contract to their first-round pick to entice someone to take on salary.

Valančiūnas averaged 8.7 points and 5.1 rebounds in 13.4 minutes per game this season, and with a July 8 deadline on his $10 million team option for next year, his status will be settled within days.

What This Means for Denver

The Nuggets seem willing to spend to keep this group together, and that was not a given a month ago.

Watson's free agency has been trending in Denver's favor as teams with cap space have already used their money, and with Watson reportedly seeking more than $25 million per year, matching that number would push Denver well above the second apron.

The front office has also turned down trade offers for Cameron Johnson, who remains in trade talks alongside Aaron Gordon and Jamal Murray.

If the Nuggets are no longer in a rush to dump salary, it gives them more leverage to be patient and find the right deal rather than settling for the cheapest one.

Kroenke hinted at this in May when he said he believed this group could have won 60 to 65 games if healthy, and that running it back remains a real option.

The championship window around Nikola Jokic is only open for so long, and Denver's willingness to go above the tax line suggests they are not ready to let any of it slip away.