After a drawn out weekend and right before the buzzer of restricted free agency, the Denver Nuggets decided to retain Spencer Jones on a two-year, $12 million offer sheet from the Oklahoma City Thunder, according to Shams Charania of ESPN.
The Denver Nuggets are matching the Oklahoma City Thunder’s two-year, $12 million offer sheet on Spencer Jones, retaining the key forward in restricted free agency, sources tell ESPN. Nuggets valued keeping their homegrown player whom they landed on an undrafted deal in 2024.
— Shams Charania (@ShamsCharania) July 27, 2026
Jones, 25, played the seventh most minutes on the Nuggets during last year’s injury-riddled season. He was one of Denver’s best role players in that stretch, excelling as a high effort defender and rebounder, while spacing the floor from three-point range. Jones shot 39.6% from three last season and upped that efficiency in a playoffs as one of Denver’s lone bright spots.
The Thunder attempted to poach Jones away from Denver due to the Nuggets’ impending luxury tax concerns. As Charania notes in a subsequent tweet, Denver’s tax bill increased by over $30 million with the addition of Jones despite the actual salary being closer to $6 million per year.
By matching Jones’ sheet, the Nuggets face a $32 million increase in current luxury taxes ($36M to $68M) and enter the second apron. They are deep in tax bills but could shed money via trades in season.
Next Denver order of business: Navigate retaining RFA Peyton Watson while… https://t.co/N5arhPRTjM
— Shams Charania (@ShamsCharania) July 27, 2026
Whatever the case, the Nuggets are bringing back Jones, who played an important role as one of the team’s most reliable defenders. His game should continue to grow, but the most important thing he can continue to provide for the Nuggets is immense effort and commitment to what got him the contract in the first place.
Now, the Nuggets are left with two roster spots and a choice to make. Retaining Spencer Jones caused the Nuggets to jump into the second apron, and retaining Peyton Watson would cause them to go even further into the luxury tax. Both scenarios are difficult to foresee Denver navigating without at least reducing some of the financial pressure, but that’s a conversation for another day.
For now, it’s good to have Jones back in the mix. He earned every bit of the $12 million guaranteed after spending two season in Denver on a two-way contract. Oklahoma City rewarded him with the deal, and the Nuggets prevented a rival from sneaking off with one of the better bench forwards in the league.
All in all, this is exactly how restricted free agency is supposed to work. The Nuggets waited until their hand was forced, but they still made the choice to retain a player they developed. Now, Jones gets paid too.