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After moving Peyton Watson to the Cleveland Cavaliers, the Denver Nuggets appear ready to continue reshaping their salary structure, with big man Zeke Nnaji’s contract emerging as the next target.
According to Brett Siegel on the Clutch Scoops podcast, Denver’s logical next step is using the draft assets acquired in the Watson sign-and-trade to move Nnaji’s deal and push the team under the second apron.
“They have a path now with some draft picks coming back to them to get out of this deadly Zeke Nnaji contract, and it will take them under the second apron. And ultimately, that will help them the most.” — Brett Siegel
Nnaji, 25, is still owed money on the four-year, $32 million extension he signed with Denver in 2023, carrying an average annual value of $8 million. The deal has become a liability because Nnaji never developed into a reliable rotation piece. Last season he averaged 3.7 points, 2.6 rebounds, and 0.6 assists across 12.0 minutes per game in 52 appearances, shooting 47.0% from the field and just 25.9% from three. Denver originally selected him with the No. 22 pick in the 2020 NBA Draft.
Why the Second Apron Matters for Denver
The financial pressure behind this move comes directly from the Watson situation. Siegel noted that keeping Watson on a deal worth around $20 million annually would have pushed Denver’s luxury tax bill from $68 million to over $210 million, with total team costs approaching $500 million — a number the organization was not willing to pay for this version of the roster.
Getting under the second apron restores Denver’s ability to combine salaries in trades and pursue upgrades ahead of the deadline. Siegel also flagged Julian Strother, DaRon Holmes, and Christian Braun as players whose roles or futures could factor into the broader roster reshuffle.
The core itself has a short runway. Siegel said the current group of Nikola Jokic, Jamal Murray, Christian Braun, Cam Johnson, and Aaron Gordon represents a one-year window, with no scenario in which all five remain together entering the 2027-28 season.
DeRozan Interest Is Real, But a Minimum Deal Complicates Things
Moving Nnaji is not purely a financial exercise. It also strengthens Denver’s ability to add a veteran wing after losing Watson’s minutes.
Siegel said the Nuggets are definitely motivated to sign six-time NBA All-Star DeMar DeRozan following the Watson trade, but Denver can currently only offer a minimum contract. That is a sticking point. Analyst Tomer Azarly pointed out that veterans often resist minimum deals because accepting one can permanently lower their market perception.
DeRozan has other options. The Miami Heat remain interested but are waiting to see how the Klay Thompson situation resolves. The Washington Wizards have also been linked to DeRozan, though Siegel noted Washington can now offer only around $6 million to $8 million after absorbing additional salary in the Watson-related deal.
Read also: Cavaliers Acquire Peyton Watson in Four-Team Trade
For Denver, the path forward is clear: clear Nnaji’s contract, recover apron flexibility, and create the conditions to make a competitive push while Jokic remains at peak level. Follow TipsGG for ongoing coverage of the Nuggets’ roster moves as the offseason develops.