The age of NBA franchises handing out money to their players like there is no tomorrow is over. Don't get me wrong, there is still a lot of money to be made, but many teams are very cognizant of their financial standings compared to where they were several seasons ago due to the league's new financial restrictions put in place by the first and second tax aprons. The Denver Nuggets, who recently won their first championship in 2022, are contenders in the Western Conference yet again. However, Denver is a first-apron tax team, and they have a huge decision to make regarding Jamal Murray's upcoming extension.

Prior to Murray heading to Team Canada training camp in preparation for the Olympics in France, reports surfaced regarding the Nuggets preparing to give their star guard a massive extension. Murray, who has been one of the more underrated scoring guards in the league over the last several seasons, was said to very likely receive a four-year, $209 million max contract extension this summer.

As things stand right now, the 27-year-old is entering the final year of his contract ahead of the 2024-25 season and will make $36 million in total. A new four-year, $209 million extension would ensure that Murray would be under contract in Denver through the 2028-29 season with an annual average value of over $50 million per season, putting him inside the top 20 of the highest paid players in the league.

The problem pertaining to Murray and the Nuggets is that his expected extension, which was reported about in June, has been nothing more than fantasy and rumors at this point. Murray has yet to put pen to paper on a new contract, and the two sides were still negotiating at the start of free agency during the first week of July. There was no firm agreement before Murray left for the Olympics, which raises even more concerns.

How Jamal Murray's Olympic play impacts contract extension

Canada guard Jamal Murray (4) looks on in the second quarter against USA in the USA Basketball Showcase at T-Mobile Arena.
Candice Ward-USA TODAY Sports

To say Murray didn't play his best for Canada this summer would be a major understatement. The Nuggets star was not a featured player for his home country during the Olympics, and he never scored more than eight points in a game during Canada's four games in Paris.

As a whole, these performances were very disappointing for Murray, and his struggles directly impacted his team finishing fifth and failing to medal. Although four games is a small sample size for Murray, there are certainly concerns stemming from his play this summer. After all, he has dealt with a fair share of injuries through the years.

Aside from the ACL injury the Nuggets star suffered in 2021, which has limited his availability at times, Murray dealt with a handful of injuries, as well as fatigue, during the 2023-24 season. A left calf strain impacted Murray's play during the playoffs, and it seemed to have carried over to this summer.

Once again, the storyline surrounding Murray revolves around his health. The fact that he has not eclipsed 65 games played over the past five years is certainly eye-opening.

It was very confusing to see Murray struggle as much as he did with Team Canada at the Olympics. Although the Nuggets have not seen a decline in his production over the last few seasons, his play this offseason is somewhat alarming. The fact that he looked slower and was not mentally prepared for the Olympics also casts a small level of doubt around Murray regarding his upcoming extension talks.

Is this a deal that is worthwhile for the Nuggets? This is a question Denver has to seriously ask themselves, but it is one that general manager Calvin Booth has already talked about.

Calvin Booth talks Jamal Murray extension

Denver Nuggets star Jamal Murray and general manager Calvin Booth in front of Ball Arena.

Jamal Murray has spent his entire eight-year career with the Nuggets. There is no reason to believe either side is having doubts about their long-term future together. After all, Murray's presence on the court next to Nikola Jokic is essential to this team's overall success and championship prestige.

Booth and Denver's front office recognize this, which is why the Nuggets GM wasn't too concerned about failing to reach an agreement on a new extension prior to the star guard participating in the Olympics this offseason.

“I mean, Jamal has been a staple of our program for the last eight years, essentially,” Booth stated on SiriusXM NBA Radio at NBA Summer League. “So, obviously, we're very interested in getting some done with him. The Olympics are a big deal and I think, having him focus on that, get through that. When he gets back, when we come back close, I think it'd be pretty easy.

“I don't think it'll be a bunch of negotiation.”

All indications point in the direction of Murray getting the four-year, $209 million extension that was discussed earlier this offseason. However, the pen has not been put to paper on the new contract. Could the Nuggets be having cold feet about this long-term commitment to Murray?

Sure, this type of contract could be a gamble, especially since Murray would be under contract with Denver through the 2028-29 season at 31 years old. Then again, the Nuggets don't really have any other options as a franchise.

Bruce Brown left in free agency last summer, and Kentavious Caldwell-Pope signed with the Orlando Magic this summer. Core members of the Nuggets recent championship roster have continued their careers elsewhere, which is why the thought of replacing Murray hasn't been an option Denver has contemplated to this point.

Jokic and Murray are the Nuggets' two stars. Without them, this franchise wouldn't have won a title in 2023, and they wouldn't still find themselves in a championship equation in the Western Conference. That is why it is only a matter of time before Denver agrees to a new deal with Murray to keep him around for the foreseeable future.

Whether or not the organization should reward him with a contract that exceeds $50 million per season over the next four years is a whole separate discussion.

Nuggets' outlook heading into 2024-25 season

Denver Nuggets guard Jamal Murray (27) moves the ball against the Los Angeles Lakers during the first half in game three of the first round for the 2024 NBA playoffs at Crypto.com Arena.
Gary A. Vasquez-USA TODAY Sports

No matter if Brown or KCP are with different teams, the goal of winning a championship remains the same for the Nuggets. As long as Jokic and Murray are the tandem running things in Denver, this team will be in the title conversation.

At the same time, the Nuggets' approach entering the 2024-25 season is going to have to shift slightly. Regardless of whether Murray negotiates a new deal before the season, this organization is going to have to find production outside of their two stars.

Although Peyton Watson and Christian Braun stepped up at times to replace Brown's lost production last season, the Nuggets' new challenge of trying to replicate Caldwell-Pope's two-way play on the perimeter will be virtually impossible. Along with Watson and Braun, second-year swingman Julian Strawther is now going to be thrown into the mix as well.

Strawther, who was drafted 29th overall by the Nuggets in the 2023 NBA Draft, is a 22-year-old that Denver is exceptionally high on given his three-point shooting and toughness as a defender. While he still has plenty to learn, the Nuggets are hopeful that Strawther will be able to supply key minutes, much like Braun did during the 2022-23 season en route to the team winning the NBA Finals.

Other than needing their bench and secondary players to step up this upcoming year, the Nuggets are also going to be an organization that has to begin thinking about their long-term financial future. If Murray is given a $209 million extension, that means he and Jokic will account for over $400 million through the 2027-28 season. Adding the contracts of Michael Porter Jr. and Aaron Gordon, who will combine to make over $150 million for the remainder of their current contracts, takes the Nuggets into the range of the second apron tax line.

Flexibility is no longer something that the Nuggets have, which is why the 2024-25 NBA season will tell the tale of which direction this franchise will head in. Even though they must keep and extend Murray, the amount that they spent on their franchise point guard will determine if Denver can create any sort of flexibility to improve their championship outlook.