Big move by the Denver Nuggets right on the deadline. Ever since Aaron Gordon became extension-eligible, the franchise had been in quite a pickle. While he was a key player in last year’s championship run, there was reported hesitation around offering him a max contract, especially after they re-signed Jamal Murray on a $208 million deal last month. But as it turns out, Gordon finally got what he wanted.

As per the latest report via Underdog NBA, the high flyer has agreed to a four-year $133 million max extension, solidifying his future in Denver with a player option in 2028-29 and a trade kicker. While he had two years left on his current deal, the hooper had a player option for next season. So, it was important for the org to make a decision before today’s deadline. They did exactly that despite the financial constraints. He would’ve been able to hit free agency next summer if he had turned down his $22.8 million player option.

Well, in just four seasons, Aaron Gordon has found a new home in the city and loves suiting up alongside Nikola Jokic and Co., “I really love this organization. I love the players on this team. I love the coaching staff.”

More importantly, he had been hoping for a similar outcome since he began negotiations with the Nuggets, “I hope we get it done. It seems like it’s moving forward in the right direction, so I’m excited. I’m excited hopefully to be extended and to stay with this organization.”

Sure enough, the Gordon-Jokic connection has become a treat to watch for all hoop fans. Combining The Joker’s insane playmaking ability with AG’s athleticism and timely cuts, they have turned into a lethal offensive duo. And with him averaging nearly 15 points and over 6 rebounds during his tenure in the Denver Nuggets, the franchise could not let him leave so easily, hence offering him the max deal. But how does this move affect the organization financially?

Denver Nuggets’ updated salary cap after Aaron Gordon’s extension

Despite Murray and Gordon’s massive extensions, the Nuggets’ salary cap for this season remains the same. That’s because the two stars will still get paid as per their ongoing deal this year. Their new contracts will come into effect next year. And that means the Canadian hooper will make $36 million this upcoming season while AG will take home $22.8 million. Meanwhile, the team has total cap allocations of $194.6 million for this year, which puts them over the first apron of luxury tax but below the second apron.

However, things will change after this season ends. Following Jamal Murray’s deal, he, along with Nikola Jokic and Michael Porter Jr. are owed a combined $140 million. With Gordon inking his new deal, that number will go up significantly to around $163.3 million.

That is a huge sum for the salary of only 4 players. Sure enough, that will put the Nuggets in a major financial dilemma and there is a high chance that they will go over the second apron after they have filled out their roster. But for now, they are focused on getting back to the title picture this year, hopefully winning another championship.

Do you think they made the right move by re-signing Aaron Gordon on a max deal?