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Jokić Declined a Contract Extension, but the Nuggets Shouldn’t Panic

The three-time MVP was eligible for a three-year extension worth around $200 million.

Isaiah J. Downing-Imagn Images

ESPN reports that Nikola Jokić will not sign a three-year, $200 million extension that could have kept him in Denver until the 2029–30 season. While it could bring some nerves in Denver at a time when NBA teams are taking huge risks to satisfy their superstars, Jokić’s decision may be beneficial for all parties involved.

The first year of the extension would have started in the 2027–28 season, replacing the player’s option on his current deal worth $62.8 million.

However, by waiting until next season, Jokić can secure an additional year worth around $80 million—and would bring his total contract extension to around $290 million. It would also mean Jokić would be locked in to maximum money until the 2030–31 season, when he’d be 36 years old.

The Nuggets would lock in their franchise’s all-time best player to an extra year.

“We’re definitely going to offer [the extension],” Nuggets owner Josh Kroenke said late last month. “I’m not sure if he’s going to accept it or not because we’re also going to explain every financial parameter around him signing now versus signing later.”

There is a level of risk on both sides. Jokić could sustain a significant injury, a concern around the league following the volume of Achilles tears during the 2025 playoffs. Jokić, however, is one of the NBA’s most durable stars. 

Jokić also has achieved a large-enough star status that a long-term injury would likely not sway a team from offering him a max deal. Two-time Finals MVP Kevin Durant received a four-year maximum extension from the Nets in 2019 even though he was expected to miss the 2019–20 season due to injury.

Denver faces the risk of Jokić asking for a trade, especially after failing to advance past the second round since they won the 2023 NBA championship. The Nuggets have retooled around Jokić this offseason, adding Cam Johnson, Tim Hardaway Jr., and Bruce Brown, who was a member of the title-winning team.

However, the Nuggets are in the middle of a standoff surrounding Jonas Valančiūnas, one of their offseason acquisitions who was supposed to serve as Jokić’s backup. The Nuggets agreed to a trade with the Kings to acquire Valančiūnas, but the Lithuanian center had reportedly verbally agreed to a deal to play with the Greek team Panathinaikos.

Denver reportedly expects Valančiūnas to honor his contract, which has two years and $20.4 million remaining. NBA reporter Marc Stein said the Nuggets have not guaranteed the second season (2026–27) left on Valančiūnas’s deal, but the trade is on track to become official later this week.

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