The Denver Nuggets are matching the Oklahoma City Thunder's fully guaranteed two-year, $12 million offer sheet to Spencer Jones, retaining the key forward in restricted free agency, sources told ESPN on Sunday night.
Despite facing significant financial burdens, the Nuggets valued keeping their homegrown player, whom they signed as an undrafted free agent in 2024.
By matching Jones' sheet, the Nuggets' projected tax penalty will increase by $32 million -- nearly doubling from $36 million to $68 million -- and they will enter the second apron for the first time under the current collective bargaining agreement. They are deep in tax bills but could shed money via trades in the season.
The Nuggets are the only NBA team in the second apron.
Jones was a key contributor for the Nuggets last season, shooting an NBA-best 69.2% from 3-point range during the playoffs.
He averaged 5.5 points and 3.3 rebounds in 64 games (37 starts) during the 2025-26 regular season.
The Nuggets also are trying to retain restricted free agent Peyton Watson while the Atlanta Hawks, Milwaukee Bucks and LA Clippers pursue him. Denver's tax penalty could further increase if he signs an offer sheet elsewhere and the Nuggets opt to match it.
Since the luxury tax system was implemented in 2002-03, Denver has paid a total of $53 million in tax penalties.
ESPN's Bobby Marks contributed to this report.
