It's Finally Done! 4 Years, $133 Million, $16.5 Million Pay Cut – Is Aaron Gordon Worth It?

As the 2024-2025 NBA season approaches, the Denver Nuggets have secured a critical piece of their championship puzzle. Aaron Gordon has officially agreed to a 4-year, $133 million contract extension with the Nuggets, according to a report by Chris Haynes from Bleacher Report. The deal puts an end to months of negotiations and solidifies Gordon’s role as a key player for the defending champions, alongside Nikola Jokić and Jamal Murray.

Gordon’s original contract was set to expire in 2026, with a player option that could have made him a free agent as early as 2025. Rumors swirled all summer about what Gordon’s next deal would look like, with initial reports suggesting he was seeking a maximum extension of 4 years, $149.5 million. Denver, however, was not keen on offering him that kind of money, and after extended negotiations, the two sides found a middle ground. Gordon agreed to exercise his $22.8 million player option for the 2025-2026 season, followed by a 3-year, $110.2 million extension. In total, the contract is worth $133 million over the next four years, a pay cut of about $16.5 million compared to the max he initially wanted.

This small adjustment in structure might seem minor on the surface, but it’s a masterstroke for the Nuggets’ front office. ESPN's salary cap expert Bobby Marks calculated that by having Gordon first exercise his player option and then extend his deal, the Nuggets are set to save approximately $60 million in luxury tax penalties. On the flip side, Gordon is still benefiting from this arrangement. In addition to securing his future with the team, he maintains the player option for the 2028-2029 season, allowing him to retain some control over his destiny. Furthermore, the contract includes trade protection clauses, maximizing his leverage while ensuring financial security.

Given the contract and its implications, many analysts have given the deal an "A" grade, and it’s easy to see why. Gordon’s value to the Nuggets cannot be overstated. While Jokić is undeniably the franchise’s cornerstone, Gordon’s skill set complements the two-time MVP perfectly. Jokić’s elite passing ability enables Gordon to capitalize on opportunities around the rim, while Gordon’s athleticism amplifies Jokić’s impact and helps cover for some of Jokić’s defensive shortcomings.

In fact, Gordon’s defensive prowess may be even more valuable than his offensive contributions. His ability to guard multiple positions and switch on defense makes him indispensable in today’s NBA. Whether he's playing one-on-one against elite forwards, offering help defense, or even sliding into the center position in small-ball lineups when Jokić is off the floor, Gordon’s versatility is a crucial asset for the Nuggets.

Looking back at the 2022-2023 championship season, Gordon’s stats were at an all-time high. He averaged 16.3 points, 6.6 rebounds, and 3.0 assists per game, while shooting an impressive 56.4% from the field, 34.7% from three-point range, and 60.8% from the free-throw line. His true shooting percentage was a remarkable 61.7%. During that regular season, Gordon even found himself in All-Star conversations, a rare feat for a player known primarily for his defense. In today's NBA, fringe All-Star players like Gordon could easily command a max contract of over $200 million.

However, last season saw some statistical regression for Gordon. In 73 games, he posted averages of 13.9 points, 6.5 rebounds, and 3.5 assists per game, with shooting splits of 55.6% from the field and just 29.0% from three-point range. Despite the dip in offensive production, Gordon’s role on the team remained consistent as the defensive anchor and lob-finishing power forward. His chemistry with Jokić continued to shine, as the Nuggets outscored opponents by 10.9 points per 100 possessions when the two were on the floor together. When combined with Jamal Murray and Michael Porter Jr., that number skyrocketed to a +13.2 net rating.

Gordon’s performance during the 2024 playoffs was another strong indicator of his importance to Denver’s success. Although the Nuggets fell short in their title defense, losing in seven games to the Minnesota Timberwolves in the second round, Gordon’s individual performance remained consistent. He averaged 14.7 points, 5.4 rebounds, and 4.3 assists per game, shooting 63.1% from the field and a scorching 58.8% from three-point range. His Game 4 performance, in which he scored 27 points on 11-of-12 shooting, while also grabbing 7 rebounds and dishing out 6 assists, was one of the standout moments of the postseason.

Despite these positives, there are areas of concern when it comes to Gordon’s game, most notably his inconsistency as a shooter. While he shot a respectable 37.5% from beyond the arc during his final year with the Orlando Magic, he has been streaky ever since. His 29.0% shooting from three last season leaves much to be desired, and although he caught fire during the Timberwolves series, it's clear that Gordon cannot be relied upon as a consistent floor spacer. His role remains that of a cutter, lob threat, and secondary playmaker, which suits him well in Denver’s offense, but his lack of reliable outside shooting limits his versatility.

Another concern with Gordon is the long-term sustainability of his game. As an athletic forward who relies heavily on his physicality and explosiveness, Gordon’s effectiveness may wane as he ages. Although he is currently only 29, by the time this extension is in its final year (2028-2029), Gordon will be 33. It’s hard to predict how much of his athleticism will remain at that point, and players who depend on their physical tools often see a significant decline by their early thirties.

Even with those concerns, this contract deserves its high grade for several reasons. First, the Nuggets managed to secure Gordon at a discount, saving $16.5 million compared to a max extension. By doing so, they also shaved $60 million off their luxury tax bill, a significant win for a small-market team like Denver. It’s worth noting that the Nuggets have already made difficult decisions regarding their roster, letting players like Kentavious Caldwell-Pope walk in free agency, but they knew they couldn’t afford to lose Gordon.

Second, Gordon could have gambled on his next contract by playing out the 2024-2025 season and testing the free agent market. With the departures of Caldwell-Pope and Reggie Jackson, and the arrival of Russell Westbrook, Gordon is likely to see an increase in his offensive opportunities this season. A strong year could have positioned him for an even larger contract in free agency, similar to what Caldwell-Pope secured despite an underwhelming postseason performance. Championship-caliber role players like Gordon are always in demand, and it's possible he could have attracted a longer, more lucrative deal next summer.

Finally, the NBA’s new collective bargaining agreement guarantees that the salary cap will continue to rise in the coming years. By the time Gordon’s contract reaches its final season, his salary of approximately $40 million will look modest compared to the max contracts available in 2028, which will likely start at over $60 million per year. In that context, Gordon’s deal may end up being only slightly above market value, and even that won’t last for long.

That said, Denver’s overall salary structure is something to keep an eye on. With Jokić on a supermax contract, Murray having signed a 4-year, $208 million extension, and Porter still under contract for 5 years and $172 million, the Nuggets' payroll is ballooning. The combined salaries of their four core players (Jokić, Murray, Porter, and Gordon) will exceed $150 million annually. For a small-market team like Denver, sustaining that kind of financial burden long-term is no easy task. If the team doesn’t win another championship in the next two years, it wouldn’t be surprising to see them explore trade options.

Since winning the 2023 championship, the Nuggets have seen their roster slowly erode. Losing players like Bruce Brown and Caldwell-Pope weakened their depth, and before the Gordon extension, there was real concern that Denver could lose him next year as well. Now, with Gordon locked in for the foreseeable future, the Nuggets have at least two more years to make another title run. For a team that prides itself on continuity, keeping the core intact for another shot at glory is worth every penny.