Story perspectives

Nuggets Sign DeMar DeRozan to $3.9M Deal

8/22/2026

Summary

Story summary

The Denver Nuggets signed DeMar DeRozan to a one-year, $3.9 million contract.
The deal was announced on August 21, 2026 after Denver traded restricted free agent Peyton Watson.
Watson’s trade sent him to Cleveland on a four-year, $88 million deal and gave Denver 2031 first-round and 2032 second-round picks.
The contract creates a $2.4 million cap hit, leaving the Nuggets $3.15 million above the second-apron and a projected $75 million luxury-tax bill.

History

Historical Context

The NBA reinstated its luxury-tax system for the 2003 season after the 2002 CBA, and the New York Knicks paid a $62.3 million tax in 2005-06 when their payroll hit $124 million. The 2011 CBA added incremental rates, and the 2023 CBA introduced a second apron. Facing a projected $75 million tax, the Denver Nuggets must now reshape their roster.

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Story summary

The Denver Nuggets signed DeMar DeRozan to a one-year, $3.9 million contract.
The deal was announced on August 21, 2026 after Denver traded restricted free agent Peyton Watson.
Watson’s trade sent him to Cleveland on a four-year, $88 million deal and gave Denver 2031 first-round and 2032 second-round picks.
The contract creates a $2.4 million cap hit, leaving the Nuggets $3.15 million above the second-apron and a projected $75 million luxury-tax bill.

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