Valanciunas had a partial guarantee on the $10 million owed for the 2026-27 season. Following a modest showing as Nikola Jokic’s backup center in the 2025-26 season, Denver elected to pay the $2 million partial guarantee rather to keep him at the full amount next year.
Subsequently, the team decided how to handle that $2 million cap hit. Reports indicate that the remaining $2 million will be stretched over three seasons, resulting in a cap hit of $667,000 for each of the next three years. This stretch reduces the current luxury-tax burden and shifts the financial obligation into the near future.
The maneuver provides some relief for the Nuggets’ luxury-tax calculations. By spreading the $2 million across three seasons, Denver lowers the immediate tax impact while keeping Valanciunas under contract on the books through those years.
With Valanciunas no longer part of the roster, the Nuggets proceeded to bolster their frontcourt depth by signing veteran Marvin Bagley III to a one-year deal to serve as Jokic’s backup center. Bagley had a strong season split between the Washington Wizards and the Dallas Mavericks, showing the potential to contribute meaningful minutes for Denver at a reasonable price tag of approximately $3.5 million for the upcoming season.
Bagley’s acquisition is seen as a cost-effective move, offering a reliable option to step in when Jokic rests or if an injury occurs, while providing a potentially higher-energy alternative at a lower cost than Valanciunas’ prior commitment.
In summary, the Nuggets have stretched Valanciunas’ remaining 2026-27 salary to distribute the cap hit over the next three seasons, reducing current luxury-tax exposure. At the same time, Denver added Bagley as a cost-efficient backup center to support Jokic in the upcoming campaign. The changes reflect a strategic approach to payroll management and roster depth as the Nuggets prepare for the new season.
