The Denver Nuggets chose a costly path to keep Spencer Jones, matching Oklahoma City's two-year offer sheet and pushing their projected luxury-tax bill to $68 million. The move keeps a 25-year-old forward who went undrafted in 2024 but earned 37 starts last season. It also turns a depth signing into a major roster-finance decision for a team still dealing with another restricted free agent.
What Is Happening
Multiple reports say Denver matched the Thunder's two-year, $12 million offer sheet for Jones, using its right of first refusal to retain the restricted free agent. NBA.com reported the match on July 27, while other outlets placed the technical value at $11.75 million, with salaries of $6 million in 2026-27 and $5.75 million in 2027-28.
The decision came after Oklahoma City moved quickly to test Denver's willingness to spend. The Thunder offered Jones a fully guaranteed deal and gave the Nuggets a short deadline to match. Denver did, preventing a useful rotation player from joining a Northwest Division rival.
The Background
Jones' rise is the reason this contract drew attention beyond the dollar figure. He went undrafted out of Stanford in 2024, joined Denver on a two-way deal and played only 125 NBA minutes as a rookie. In his second season, injuries opened a path to a larger role, and he converted that opportunity into a standard contract in February.
During the 2025-26 regular season, he averaged 5.5 points and 3.3 rebounds in 64 games while shooting 50.4% from the field and 39.6% from three-point range. He started 37 times, often filling in when Aaron Gordon was unavailable. The Denver Post described his development as a homegrown success story built on defense, spot-up shooting and the ability to handle several frontcourt assignments.
Jones also had a sharp postseason moment. In a six-game series against Minnesota, he averaged 6.5 points in 24 minutes and shot 69.2% from three. One of his biggest performances came in Game 5, when he scored 20 points and made four of five shots from beyond the arc.
The Latest Development
The story accelerated when Oklahoma City submitted the offer sheet on Saturday. Jones responded in an unusual place for NBA free-agency news, and OKC Thunder Wire captured his LinkedIn post.
Bet you’ve never seen a free agency announcement on LinkedIn. Neither have I. But here we are.
The most consequential change came when Denver matched. According to the contract and tax breakdown, the Nuggets' projected luxury-tax bill rises from $36 million to $68 million. Oklahoma City, meanwhile, regains access to the taxpayer mid-level exception it used for the offer and cannot trade for Jones for one calendar year.
What It Means
For Denver, the match protects proven depth at a position that became especially valuable when Gordon missed time. Letting Jones leave would have forced the Nuggets to search for a replacement with only a veteran-minimum offer available, according to the cited reporting. Keeping him preserves continuity, shooting and defensive flexibility, but at a steep financial cost.
For Oklahoma City, the failed offer still had strategic value. The Thunder forced a divisional rival to commit more money and cross a payroll threshold, while recovering the exception after Denver matched. That leaves Oklahoma City free to pursue another bench addition, though Jones is no longer an option through trade for the next year.
What Remains Unclear
The next unresolved issue is Peyton Watson. Denver now has to decide how to handle another restricted free agent while already carrying the higher tax projection. Reports cited interest in Watson from the Hawks, Bucks and Clippers, but no final agreement appears in the supplied coverage.
Denver may also try to reduce its tax bill through in-season trades, yet none of the reports identifies a specific player or deal. Jones' exact role is also not settled; the supplied reporting supports him as a rotation forward and spot starter, but not a guaranteed place higher in the depth chart.
FAQ
Did the Nuggets keep Spencer Jones?
Yes. Denver matched Oklahoma City's offer sheet, so Jones will remain with the Nuggets.
How much is Spencer Jones' new contract?
The offer was widely reported as two years and $12 million. One contract breakdown listed the exact value at $11.75 million.
Why could Denver match the Thunder's offer?
Jones was a restricted free agent, giving the Nuggets the right to match an outside offer and retain him.
What did Jones average last season?
He averaged 5.5 points and 3.3 rebounds in 64 regular-season games, with 37 starts.
How does the deal affect Denver's tax bill?
Reports project the luxury-tax bill rising from $36 million to $68 million after the match.
What happens next for the Nuggets?
Denver's next major roster question is Peyton Watson's restricted free agency and whether the team makes trades to lower costs.