The Denver Nuggets and Aaron Gordon agreed to a four-year contract extension on Monday worth roughly $133 million. The contract involves Gordon opting into his $22.8 million player option in 2025-26, then tacking on three more years at $110 million after that.
The deal includes a player option in 2028-29 and a 15% trade kicker, according to multiple reports, but it’s also seen as a very team friendly deal for the Nuggets. Gordon’s max contract extension number was four years, $150 million. This saves Denver some flexibility in 2025-26 and allows the team an opportunity to keep their core together for longer.
On the latest episode of Locked On Nuggets, Matt Moore and I discussed the Gordon contract extension at length and some important factors to consider. Among those factors were:
1. Aaron Gordon took a small pay cut to stay with the Nuggets
2. The negotiated deal gives Denver flexibility below the Second Tax Apron in 2025-26
3. There’s added pressure on Michael Porter Jr.
First, the pay cut. As mentioned above, Gordon could have signed a max contract with the Nuggets for $150 million over four years. That would have involved Gordon declining his player option and signing the deal at a higher number in the first season.
Gordon and his agency, Klutch Sports with Rich Paul and Calvin Andrews, decided not to do that. Instead, the Nuggets starting power forward gave back $17 million in potential salary for a player option in 2028-29 and a 15% trade kicker. Both elements make it less likely Gordon will be traded and more likely he stays a Nugget with Nikola Jokic and Jamal Murray for a long time.
Second, the added flexibility of Gordon giving back some money in 2025-26 allows the Nuggets to possibly stay under the Second Tax Apron in 2025-26 while still keeping their core group together. According to Bobby Marks of ESPN, the Nuggets remain at $7.1 million below the Second Apron in 2025-26. The Nuggets will also get significant tax payment savings on such a deal.
Finally, Michael Porter Jr. is now “up next” among the core of Denver’s roster for a contract extension. He has three more years left on his current deal and is being paid a high salary number.
If the Nuggets end up performing below expectations this season and hope to make a change, all eyes will naturally fall on Porter and his contract. Jokic isn’t going anywhere. Murray and Gordon just signed extensions through 2028-29 this off-season. It’s an unfortunate reality that may befall the Nuggets in time.
For now though, Gordon’s contract extension is a reason to celebrate. The Nuggets championship core remains intact for now, and expectations remain high while the best player in the world plays for the Nuggets.
