Report: Nuggets re-signing Nikola Jokic to five-year max after declining team option

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The Nuggets are building around Nikola Jokic.

But a second-round pick turning into a franchise player so quickly creates complications. Denver is resolving one by declining Jokic’s team option, which will send him into restricted free agency (as opposed to unrestricted free agency next year) and paying him.

Shams Charania of Yahoo Sports:

This ought to please Jokic. He would have earned just $1,600,520 next season if Denver exercised his team option.

Jokic is one of the best-passing full-time centers ever. He also shoots and rebounds well, though he must improve his defense to become worthy of this contract. At just 23, he’s worth betting on.

That said, I’m surprised the Nuggets didn’t get him on a slight discount. Though they clearly didn’t want to risk him testing unrestricted free agency next year, they gave him a MASSIVE raise (about $24 million) next season when they didn’t have to.

Jokic’s exact max salary won’t be determined until the salary cap and luxury-tax line are set this month. But this clearly puts Denver in cost-cutting mode now.

As constructed, the Nuggets are in line for about $24 million in luxury-tax payments. That’s without considering Will Barton, who’ll be an unrestricted free agent. Expect Denver to look to unload Kenneth Faried, Darrell Arthur, Wilson Chandler and/or Mason Plumlee.

Jokic was always going to be in Denver next season. The Nuggets have now secured him far longer. It will cost them next year – an important season to them – but they also clearly value a future with Jokic.