The Denver Nuggets have paid a considerable price to prevent one of their most promising role players from joining a Western Conference rival.
Denver has matched the offer sheet Spencer Jones signed with the Oklahoma City Thunder, keeping the restricted free agent on a two-year contract commonly reported as worth $12 million.
The decision was made shortly before Sunday night’s deadline and ensures that the 25-year-old will remain with the franchise that gave him his first opportunity in the NBA.
According to NBA.com’s report on Denver’s decision, ESPN insider Shams Charania was the first to reveal that the Nuggets had exercised their right to match Oklahoma City’s fully guaranteed offer.
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The financial consequences extend far beyond Jones’ salary.
Denver pays a huge price to keep Jones
Matching the offer is expected to increase Denver’s current luxury-tax bill from approximately $36 million to $68 million.
That means the Nuggets could effectively spend an additional $32 million in tax payments to retain a player whose contract will pay him just under $12 million over two seasons.
Denver will also move above the NBA’s second tax apron, the league’s most restrictive financial threshold. Teams above that level face limitations involving trades, salary aggregation and future roster-building options.
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The contract is technically worth $11.75 million, with Jones scheduled to receive $6 million during the 2026-27 season and $5.75 million the following year. Both seasons are fully guaranteed.
Jones will also have the right to veto a trade during the first season of the agreement because Denver matched an outside offer sheet.
The Nuggets could attempt to reduce their tax exposure through trades during the season, but their immediate decision makes clear that they were unwilling to lose Jones without compensation.
Thunder move forces Denver’s hand
Oklahoma City signed Jones to the offer sheet on Saturday, giving Denver only a limited period in which to decide whether to keep him.
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As a restricted free agent, Jones was free to negotiate with other teams, but the Nuggets retained the right of first refusal after submitting a qualifying offer earlier in the summer.
The Thunder structured the contract using their taxpayer mid-level exception and made both years fully guaranteed, increasing the pressure on Denver to match.
As described by NBC Sports’ coverage of Oklahoma City’s offer, the Thunder viewed Jones as a versatile 6-foot-7 defender who could also provide reliable outside shooting.
Oklahoma City had created space in its rotation after trading several established wings, including Luguentz Dort, Aaron Wiggins and Isaiah Joe.
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Jones would have given the Thunder another physical and defensively flexible option in a conference where both teams expect to compete near the top.
By matching the offer, Denver not only retained its own player but also stopped a direct rival from adding him.
An undrafted gamble pays off
Jones’ new contract represents a remarkable rise for a player who was not selected in the 2024 NBA Draft.
After spending five seasons at Stanford, he joined Denver on a two-way contract and played only 125 minutes during his rookie campaign.
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He returned on another two-way deal before the 2025-26 season and gradually forced his way into the rotation as injuries created opportunities.
Jones appeared in 64 regular-season games and started 37 of them, averaging 5.5 points, 3.3 rebounds and 0.8 steals in 22.1 minutes per game.
He converted 50.4 per cent of his field-goal attempts and 39.6 per cent of his three-pointers, giving Denver an efficient low-usage option alongside Nikola Jokić and the team’s more established scorers.
His two-way contract was converted into a standard NBA agreement in February, allowing him to remain with the Nuggets for the rest of the season and participate fully in the playoffs.
Playoff performance changed his value
Jones strengthened his position during Denver’s first-round series against the Minnesota Timberwolves.
He averaged 6.5 points in 24.2 minutes across six games and made nine of his 13 three-point attempts, giving him a remarkable 69.2 per cent success rate from beyond the arc.
That was the highest three-point percentage among eligible players during the playoffs.
His most memorable performance came in Game 5, when he scored 20 points on highly efficient shooting and helped Denver keep its season alive.
The sample size was small, but the series showed that Jones could remain composed in meaningful postseason minutes rather than merely producing during the regular season.
Sportsnet’s report on the matched offer noted that Denver had already lost depth during the offseason, making the retention of a young and familiar rotation player increasingly important.
Denver still faces another difficult decision
Keeping Jones does not solve all of the Nuggets’ problems.
The franchise must now determine how to handle restricted free agent Peyton Watson, who has reportedly attracted interest from the Atlanta Hawks, Milwaukee Bucks and Los Angeles Clippers.
Watson is expected to command a larger contract than Jones, which could send Denver’s luxury-tax bill significantly higher.
Should Watson accept his qualifying offer and remain with the Nuggets, the projected tax penalty could already rise above $100 million. A more lucrative multiyear agreement would increase that figure further.
Denver’s willingness to match Jones’ deal suggests that the organisation remains committed to preserving depth around Jokić, despite the financial consequences.
However, the second-apron restrictions could force the front office to move another player later in the year to regain flexibility.
A victory for Jones and a warning for Denver
For Jones, the outcome is ideal.
He receives the financial security of a fully guaranteed multiyear contract without having to leave the organisation where he established himself.
For Denver, the decision is considerably more complicated.
The Nuggets have retained an efficient shooter, capable defender and affordable rotation player. They have also committed themselves to a tax penalty several times larger than the value of his contract.
Oklahoma City failed to land Jones, but its offer forced a conference rival into a difficult financial position.
The Thunder’s raid may have been blocked, but it still left Denver with an enormous bill.
