Ask a child about their Disneyland experience and you’ll probably get enthusiastic descriptions of fun rides, lots of toys, and being up close and personal with your idols. Yes, there were some tiring portions, but it was all worth it. 

But if you ask that same child once he becomes an adult who visits Disneyland again, the conversation will begin with the costs of the tickets, food, and even the merchandise. Nonetheless, it’s a trip down memory lane worth doing, more so when they bring their own child with them. 

Such is the case for the Denver Nuggets, who a few years after winning the NBA championship are faced with a dilemma of retaining a competitive core in the face of basketball inflation. It goes beyond retaining Nikola Jokic and Jamal Murray, because both can’t do it alone and as they age, they will need more help. 

Thus, this offseason has put the Nuggets in a precarious position: keep the core of a perennial contender while maintaining cap flexibility. This is a problem that every other NBA team faces, yes, but for Denver, this is a greater concern because of how they have eclipsed the $200-million level in terms of team payroll. 

The Nuggets have been among the top-10 highest payrolls in five of the last 10 seasons. Much of that occurred right as Denver won its title in 2023, and as their stars’ rookie-scale contracts turned into maximum extensions. As it stands, they will have $220.1 million in team salaries, which is currently the second-highest behind the Orlando Magic ($223.5 million). Maximum contracts have turned into supermax extensions and the punitive second apron that restricts trades and player signings is much closer than the Nuggets would like for it to be. 

But then, it seems like they’re still not done with their offseason plans. 

Peyton Watson has emerged as the swiss knife that thrives off a versatile player in Jokic. Watson has also had a career-year last season, where he has continued to emerge as an integral piece that does the little things well and can create on his own. 

However, the problem lies in Watson’s price tag. Regardless of what you see on the internet, his contract will push Denver to the top of the NBA in team payroll and well above the second apron. The financial ramifications may not be the only factor complicating matters as Watson has played in 68 and 54 games in the last two seasons, and with the best ability being availability, the Nuggets must be weighing their options on flexibility versus continuity. 

Denver did sign Marvin Bagley III and matched the Oklahoma City Thunder’s offer to Spencer Jones, but neither one of them can truly replace what Watson offers right now and even if given time, who knows what can happen? 

Nonetheless, more than a handful of NBA teams would be envious of the Denver Nuggets’ situation. They won a championship a few years ago and they have a generational star in his prime. However, the Nuggets are currently facing basketball inflation, and if they don’t manage the situation well, they could very well be a cautionary tale in time.