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LeBron James defends Denver Nuggets center Jonas Valančiūnas during an NBA game. Denver's decision to waive Valančiūnas created additional salary cap flexibility, giving the Nuggets another financial tool as they continue exploring ways to strengthen their roster around Nikola Jokić. Getty
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The Los Angeles Lakers could make a sign-and-trade deal with the Denver Nuggets swapping LeBron James and Peyton Watson. Getty
The Denver Nuggets’ decision to waive Jonas Valančiūnas was more than a move to part with a veteran backup center.
It also created new roster-building flexibility around Nikola Jokić, opened a stronger financial pathway in the LeBron James sweepstakes and gave Denver more room to operate while navigating Peyton Watson’s restricted free agency.
Shortly after ESPN’s Shams Charania reported Wednesday that the Nuggets were waiving Valančiūnas, Third Apron salary-cap analysts Yossi Gozlan and ESPN’s Bobby Marks explained the impact.
“Jonas Valanciunas leaves $2 million in dead money,” Gozlan wrote on X. “The Nuggets have until the end of August to decide to stretch it over three years (extra $1.3 million in savings). They’re now $7.8 million under the second apron and open up the $6 million taxpayer mid-level exception.”
Marks noted that Valančiūnas’ $10 million salary had been set to become fully guaranteed on Wednesday. Instead, Denver will carry only a $2 million cap hit, with the option to stretch it over three seasons.
Nuggets Get New Tool in LeBron James Pursuit
The most intriguing part of the move may be what it creates beyond the center position.
Before waiving Valančiūnas, Denver’s financial constraints largely limited the Nuggets to offering James a veteran-minimum contract if the four-time MVP decided to leave the Los Angeles Lakers.
Now, the Nuggets have access to the approximately $6 million taxpayer mid-level exception, giving them a more competitive financial offer while staying below the second apron.
While the approximately $6 million taxpayer mid-level exception still falls well short of James’ maximum earning power and the roughly $15 million non-taxpayer mid-level exception available to the Golden State Warriors, it gives Denver a far more competitive financial offer than the veteran minimum as the Nuggets continue exploring ways to maximize Nikola Jokić’s championship window.
Peyton Watson Situation Remains Separate
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Getty The Denver Nuggets now have a stronger offer for LeBron James while maintaining cap flexibility to retain Peyton Watson.
The move does not directly affect Denver’s ability to re-sign Watson.
Because Watson is a restricted free agent and the Nuggets hold his Early Bird rights, Denver can exceed the salary cap to retain him or match any offer sheet he receives.
Instead, Valančiūnas’ departure improves Denver’s flexibility around Watson.
The Nuggets can now bring Watson back, use the taxpayer mid-level exception and use their remaining space below the second apron to fill out the roster.
Nuggets Still Have Work to Do
Marks reported Denver has five roster spots open.
That gives the Nuggets several decisions to make after moving on from Valančiūnas, especially with Watson still unsigned and James’ free agency unresolved.
NBA insider Jake Fischer previously reported on Bleacher Report’s livestream that the Los Angeles Clippers remain the biggest threat to Watson, though both Watson and Denver prefer a reunion if the sides can agree on the right number.
Waiving Valančiūnas does not solve every question.
But it gives Denver more ways to answer them.
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