DeMar DeRozan Agrees to One-Year Deal With Denver Nuggets

On Thursday, August 21, 2026, six-time NBA All-Star DeMar DeRozan agreed to sign a one-year, $3.9 million contract with the Denver Nuggets, league sources told ESPN. The deal brings a proven mid-range scorer to a contender two days after Denver traded forward Peyton Watson to the Cleveland Cavaliers, and comes roughly one month after the Sacramento Kings waived the 37-year-old veteran.

Editor’s note: This article draws on reporting from ESPN (Shams Charania, Bobby Marks), The Associated Press, and U.S. sports desks, August 21, 2026. Contract figures are subject to league review and official announcement.

Deal details

Shams Charania first reported the agreement Thursday afternoon. DeRozan will join Denver on the veteran minimum, a low-salary structure that lets the Nuggets add an accomplished scorer without a long-term financial commitment.

Detail	Information
Player	DeMar DeRozan, 37, guard/forward
New team	Denver Nuggets
Contract	One year, $3.9 million (veteran minimum)
Previous team	Sacramento Kings (waived July 2026)
Agent status	Unrestricted free agent

The AP confirmed the same day that DeRozan had agreed to a one-year veteran-minimum deal with Denver, citing a league source.

DeRozan has played 17 NBA seasons with the Toronto Raptors, San Antonio Spurs, Chicago Bulls, and Kings, earning six All-Star selections. He ranks 18th on the league’s all-time scoring list and has appeared in at least 74 regular-season games in each of the past five seasons.

Why Sacramento moved on

The Kings waived DeRozan in July after trade talks stalled. Only $10 million of his $25.7 million salary for the upcoming season was guaranteed, giving Sacramento flexibility to clear roster space and salary.

DeRozan spent two seasons in Sacramento after signing with the franchise in 2024. In 2025–26, he played 77 games and averaged 18.4 points, 4.1 assists, 2.9 rebounds, and 1.0 steal while shooting 49.7% from the field. It was the first time since 2012–13 that he averaged fewer than 20 points per game, but his availability and consistency kept him on the radar of multiple playoff teams.

Several clubs reportedly pursued DeRozan this summer, including the Miami Heat and Washington Wizards. Denver emerged as a front-runner and closed the deal on a short-term contract that fits its cap structure.

What DeRozan brings to Denver

For the Nuggets, DeRozan addresses a clear need: half-court scoring off the bench and in closing lineups alongside Nikola Jokić and Jamal Murray. His game — built on mid-range mastery, foul drawing, and late-clock shot creation — does not require heavy on-ball usage, which could help Denver stabilize second-unit offense after losing Watson’s wing versatility in the August 19 sign-and-trade.

DeRozan’s age is the obvious question. At 37, he is no longer the nightly 25-point force he was in Chicago or Toronto. But his 2025–26 output suggests he can still carry a playoff rotation segment as a primary option for short stretches, and his playoff experience across four franchises adds value in a Western Conference where depth often decides series.

Denver’s front office has signaled a win-now posture despite recent roster turnover. Adding a future Hall of Fame candidate on a minimum deal — rather than committing multi-year money — preserves flexibility while raising the team’s offensive floor.

Salary-cap and tax implications

The headline salary is modest, but the cap math is not. ESPN cap analyst Bobby Marks reported that DeRozan’s deal carries a $2.4 million cap hit for Denver and leaves the Nuggets with 14 players on guaranteed contracts.

Marks projected Denver would sit roughly $3.15 million above the NBA’s second apron after the signing, with a luxury-tax penalty in the neighborhood of $75 million. That underscores how aggressively ownership is spending to maximize the Jokić championship window — even a minimum contract can push a tax bill higher when a roster is already deep into repeater penalties.

For DeRozan, the one-year structure also keeps options open. A productive season in Denver could position him for a stronger deal next summer; a shorter role could still appeal if he prioritizes a late-career title push with a proven core.

Nuggets offseason context

The DeRozan agreement lands in a busy week for Denver:

• Aug. 19: Traded Peyton Watson to Cleveland in a three-team sign-and-trade also involving the LA Clippers, receiving future draft picks and clearing wing minutes.
• Aug. 21: Agreed to terms with DeRozan on the veteran minimum.

Watson’s departure removed a 23-year-old two-way wing on an ascending trajectory; DeRozan’s arrival adds a 37-year-old scorer on an expiring deal. The swap reflects Denver’s bet that proven offense and playoff savvy outweigh long-term cap flexibility at this stage of the Jokić era.

The signing is subject to standard NBA procedures, including contract review and physicals. Denver has not announced a formal introductory news conference as of Thursday evening.

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Discussion

1. Is a one-year minimum deal the right risk for Denver’s tax bill?

DeRozan may cost only $3.9 million on paper, but Marks projects Denver could face roughly $75 million in luxury-tax penalties once the roster is finalized. Does adding a 37-year-old scorer justify pushing further above the second apron — or is any marginal upgrade worth it with Jokić still in his prime?

2. Where does DeRozan fit beside Jokić and Murray?

Denver’s offense runs through its two stars. DeRozan thrives with the ball in his hands, yet he has adapted to secondary roles before. Can he boost the bench without slowing the Nuggets’ pace-and-space identity — especially after losing Watson’s youth and defensive switchability?

Share how you would deploy DeRozan in Denver’s rotation, and whether this move makes the Nuggets a stronger Western Conference threat.