In the NBA, elite production usually comes with an elite price tag. For the Denver Nuggets, that reality is embodied by Nikola Jokic. The Serbian superstar has been the face of the franchise for years, delivering MVP-caliber basketball night after night. This summer, as Jokic becomes eligible for a contract extension, Denver faces a critical decision: pay up or risk watching one of the league’s most dominant players test free agency down the line.
Jokic is entering the final guaranteed season of his five-year, $276.1 million deal. He holds the option to opt out of a $62.2 million player option for the 2027-28 season, which would make him an unrestricted free agent in 2027. That scenario is Denver’s nightmare. Allowing a player of Jokic’s caliber to hit the open market is simply not an option the organization can afford to entertain. Securing him with a long-term extension as soon as possible is clearly in the Nuggets’ best interest.
However, money is tight in Denver. The Collective Bargaining Agreement offers little flexibility, and a recent contract projection from Bleacher Report only underscores the financial pressure. According to the forecast, Jokic is expected to command approximately $278 million over four years. That extension would also push his 2027-28 salary — should he opt out — up to around $62.8 million.
The projection paints a picture similar to Giannis Antetokounmpo’s recent deal: Jokic would likely opt out of his final year and sign an extension featuring a five-percent raise, beginning with a starting salary of roughly $62 million. Notably, that figure could exceed the 35 percent maximum salary if the salary cap does not rise beyond current projections. In short, there will be no hometown discount or Jalen Brunson-style bargain in Denver. Jokic has earned every dollar of his next contract, and the market will reflect it.
Jokic’s value remains undeniable despite a disappointing end to the 2026 postseason. The Nuggets were eliminated by the Minnesota Timberwolves in six games, with Rudy Gobert and the Wolves’ defense appearing to solve the puzzle of containing the three-time MVP. Jokic shot just 44.6 percent from the field and a career-low 19.4 percent from three-point range in the series. While Denver’s shortcomings extended beyond their star center, his performance left room for criticism.
Still, six games do not define a player of Jokic’s stature. In the 2025-26 regular season, he once again proved his supremacy, averaging a triple-double across 65 games: 27.7 points, 12.9 rebounds, and 10.7 assists per night. His basketball IQ, passing vision, and scoring efficiency make him a unique force — one that few teams can hope to replicate or contain.
The Nuggets understand this. If Denver fails to offer a deal well north of $250 million, another franchise undoubtedly will. The prediction of a massive extension may be accurate, but it provides no comfort for Nuggets management. It simply confirms what everyone already knows: keeping Nikola Jokic happy and in a Denver uniform will require significant financial commitment at a time when roster flexibility is already constrained.
The upcoming negotiations will test Denver’s willingness to build around their generational talent. For a franchise that has enjoyed sustained success with Jokic at the helm, the message is clear — there is no alternative to paying the man who makes it all possible. The only question is how creatively the front office can navigate the salary cap to support him moving forward.