According to Adrian Wojnarowski of ESPN, the Denver Nuggets are trading backup point guard Reggie Jackson to the Charlotte Hornets for cash.

The Nuggets are also sending out three second round picks, their own selections in 2025, 2029, and 2030, to get the deal done.

The Nuggets, stuck up against the second tax apron and with the prospect of Kentavious Caldwell-Pope leaving in free agency, appear to have created some luxury tax breathing room. Denver isn’t taking back any salary in the trade, meaning that they could afford to bring back Caldwell-Pope if he was interested in returning.

As for Jackson, the Nuggets backup point guard last year played all 82 games and started all 23 games that starting point guard Jamal Murray missed due to injury. Jackson averaged 10.2 points and 3.8 assists in 22.2 minutes per game, helping guide the Nuggets starters and second unit through the regular season. He had some impressive moments, including an incredible 35-point, 13-assist outburst early in the season against his former Los Angeles Clippers back in November.

Unfortunately, Jackson’s role was reduced dramatically in the playoffs, averaging just 9.8 minutes per game. He and Murray struggled to play together all season, and the Nuggets struggled when Jackson held the reins in the second half of the season. He helped the Nuggets get through the regular season, but when the playoffs rolled around, he and the Nuggets were ill-equipped to handle the athleticism and physicality of the Minnesota Timberwolves.

And yet, this move is surprising for a number of reasons. After moving multiple second round picks yesterday to secure DaRon Holmes in the first round of the NBA Draft, the Nuggets have now sent out another three second round picks to clear salary. That makes sense if the Nuggets are willing to re-sign Kentavious Caldwell-Pope, though five second round picks used in 24 hours to ultimately add one player feels like a misuse of resources.

The real wonder is whether the Nuggets retain Caldwell-Pope at all. Yesterday, Nuggets General Manager Calvin Booth made his feelings clear that the Nuggets would be okay if Kentavious Caldwell-Pope doesn’t return. Will they still re-sign KCP after those comments?

Because if Denver doesn’t bring back KCP, this move to trade Reggie Jackson sure feels like a salary dump to reduce Denver’s luxury tax bill. Jackson’s money wasn’t precluding Denver from entering the second tax apron though. Denver will likely be there almost no matter what. It’s to what degree they’re in the second apron that appears to be the concern, and I’m not sure how much that actually matters.

Perhaps the Nuggets are attempting to free up minutes for point guard Jalen Pickett, who Booth clearly believes in as a backup point guard option. Perhaps the Nuggets aren’t done adding to their team and could explore more free agency moves or trades, and this is only the precursor.

Either way, this is the second time Jackson has been salary dumped to Charlotte in the last 18 months. He first arrived in Denver by way of a buyout from the Hornets after being traded there from the Los Angeles Clippers. It can’t feel great for Jackson, though he won a championship with Denver in 2023, and there’s plenty of playing time opportunity behind LaMelo Ball in Charlotte if they choose to retain him.

Here’s to Reggie Jackson, NBA champion.