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Aaron Gordon has agreed to a four-year, $133 million extension with the Denver Nuggets, according to ESPN's Shams Charania

The deal represents a worthwhile compromise on both sides. It had previously been reported that Gordon wanted his maximum possible extension, which would have come out to around $150 million over four years. The cost-conscious Nuggets didn't want to go quite so far. Instead, Gordon will opt into the final year of his existing contract and make $23.8 million for the 2025-26 campaign and then earn his maximum possible salary in the three seasons thereafter to get to $133 million in total.

Gordon, 29, is entering his 11th season in the NBA. Last season, he averaged 13.9 points and 6.5 rebounds per game while shooting 55.6 percent from the field. 

The Nuggets now have their top four players locked in for at least three more years. Jamal Murray also earned a long-term extension this offseason, and Nikola Jokic and Michael Porter Jr. were already locked up through the 2026-27 seasons. However, the Nuggets did lose starting shooting guard Kentavious Caldwell-Pope to free agency when he signed with the Orlando Magic.

Letting Caldwell-Pope leave was a calculated financial decision on Denver's part. By losing him, the Nuggets were able to avoid the second apron this season. Keeping Gordon at his below-market 2025-26 player option salary could give them a path to doing so again next season. 

While every team will approach the second apron differently, the rules punish teams most severely when they spend at least three seasons out of a five-year span above that line. The longer Denver can avoid starting that clock, the longer they can keep the bulk of this roster together.

Despite last season's playoff disappointment, Denver is still among the championship favorites for this season. They return four of their five starters and a number of younger players like Christian Braun, Peyton Watson and Julian Strawther are expected to step into larger roles. With Caldwell-Pope gone, Gordon's defense on opposing stars is more important than ever. Now, he's set to catch lob passes from Jokic for years to come.