Aaron Gordon signs long-term extension with Nuggets

23:00: Gordon’s new contract with the Nuggets is official, according to the NBA.com transaction log.

19:38: : Nuggets and forward Aaron Gordon agreed to a contract extension, NBA insider Chris Haynes wrote on Twitter. The deal will include a player and kicker option in exchange for a trade, ESPN’s Shams Charania tweeted.

Although Haynes and Charania are calling the contract a four-year extension, the deal will actually add three new years to Gordon’s current contract and take effect in 2026.

Gordon, who earns a base salary of $22.84 million in 2024/25, will exercise a player option worth $22.84 million for 25/26 as part of the deal and will then receive the maximum salary for the next three seasons, it added Charania (link to Twitter).

Since Gordon is eligible for a 40% increase in option salary, the extension will start at $31.98 million, with a 27/28 salary of $34.54 million and a player option worth $37.1 million in 2028/29. The deal will include a total of $103.61 million in new funds over the three seasons and incentives that could increase the total value to approximately $109 million.

Gordon is the second Nuggets starter to receive a major extension this offseason. Denver locked up the quarterback Jamal Murray with a four-year extension of the maximum salary in September.

Superstar center Nikola Jokic and forward Michael Porter Jr. Both have signed contracts for the 2026/27 season, and Jokic also has a player option for the 27/28 season.

The Nuggets lost Kentavious Caldwell-Pope in July in free agency and were keen to keep their remaining core intact. Gordon would still be eligible for an in-season contract extension if he declined the 25/26 option as part of the deal, but he would have to complete the deal by Monday night to exercise that option and extend that number.

Had Gordon declined that option, he would have been eligible for up to $143.3 million under a four-year contract extension beginning in 2025, so the Nuggets managed to complete the deal just under that amount. This should help the team better manage its luxury tax situation in the 25/26 season.

Gordon has proven to be a versatile starter since being acquired from Orlando in the 2020/21 season, pairing well with Jokic in attack and providing solid defense on the wing. He appeared in at least 68 regular-season games in each of his three full seasons in Denver. Last season, Gordon averaged 13.9 points, 6.5 rebounds and 3.5 assists per game while struggling to shoot from distance (29.0%).