The Denver Nuggets won their first NBA championship just over a year ago. Nikola Jokić, the reigning MVP, has firmly established himself as the best player in the world. While fans are excited about the team’s current trajectory, the pressing question is whether the Kroenke’s will continue investing enough in the Denver Nuggets to challenge for future titles.
NBA Business: Will The Kroenkes Spend To Keep The Denver Nuggets Competitive?
The short answer is yes —the Kroenkes will spend to keep the Nuggets competitive. However, they are unlikely to go beyond the second tax apron, a luxury tax threshold that comes with strict penalties under the NBA’s new collective bargaining agreement (CBA). The Kroenke’s have a history of ensuring that its teams remain competitive while maintaining financial discipline. Their ownership of several major sports teams across the globe provides insight into how they will handle the Nuggets going forward.
Kroenkes and Their Financial Philosophy
The Kroenke family, led by Stan and Josh Kroenke, owns multiple sports teams across the NBA, NHL, NFL, MLS, and Premier League. Their ownership approach emphasizes sustainability and careful financial planning. While they have shown a willingness to invest in star players and the necessary infrastructure to win championships, the Kroenkes are not known to be reckless spenders. They prefer to operate with controlled, strategic spending, ensuring their teams remain competitive while avoiding exorbitant costs.
Nuggets’ Recent Championship: A Template for Future Success?
The Denver Nuggets’ championship in 2023 came after years of careful roster building, centered around Jokić and Jamal Murray. This strategy reflects the Kroenkes’ philosophy of fostering long-term success by investing in key players while maintaining a balanced salary cap.
In the summer of 2024, the Nuggets faced a difficult decision when they chose not to re-sign Kentavious Caldwell-Pope, a key player during their title run. Despite having his Bird Rights, which would have allowed them to go over the salary cap to keep him, the Nuggets let him walk when Orlando offered him a three-year, $66 million deal. This decision was not based on a lack of desire to stay competitive but rather on the need to maintain financial flexibility in the new CBA landscape.
“We’ve been smart about how we’ve planned, and we think we have young players that can fill in to certain roles,” said Nuggets President Josh Kroenke when explaining the decision not to re-sign KCP.
The Nuggets are betting on their younger players to fill the gaps left by veteran departures while avoiding the financial penalties of exceeding the second tax apron.
Other Teams Under Kroenke Ownership
The Nuggets are not the only team under the Kroenkes’ ownership. Their approach to spending on other teams provides a clear picture of how they manage finances and talent across multiple leagues.
Colorado Avalanche (NHL)
The Avalanche have been one of the most successful franchises in the NHL under the Kroenkes, winning two Stanley Cups (2001 and 2022). The team’s success reflects their willingness to invest in top-tier talent like Nathan MacKinnon and Cale Makar. However, the Kroenkes have also been cautious about maintaining a manageable payroll, ensuring long-term competitiveness rather than making short-term splashes in free agency.
Los Angeles Rams (NFL)
The Rams won the Super Bowl in 2022 under Stan Kroenke’s ownership. His investment in moving the team to Los Angeles and building the $5 billion SoFi Stadium was a massive financial commitment, signaling a strong desire to make the team competitive in the long run. However, even after winning the Super Bowl, the Rams have focused on balancing spending with long-term sustainability, rather than continuously breaking the bank.
Arsenal F.C. (Premier League)
Arsenal is one of England’s most prestigious soccer clubs, but the Kroenkes have been criticized by fans for not spending enough to compete with the likes of Manchester City and Chelsea. While Arsenal has won several FA Cups under Kroenke’s ownership, they have not been able to win a Premier League title. The Kroenkes have focused on financial prudence, even when fans call for more aggressive spending in the transfer market.
– Colorado Rapids (MLS)
The Rapids won their lone MLS Cup in 2010, but have not been a dominant force in the league since. The team operates on a more modest budget compared to other MLS franchises, reflecting the Kroenkes’ cautious financial approach in a less profitable sports league.
What to Expect for the Nuggets’ Future
Based on the Kroenkes’ history with their other teams, it’s clear that they will continue to spend on the Denver Nuggets, but with controlled financial discipline. The Kroenkes will invest in Jokić and the key pieces around him, but they will do so while avoiding the NBA’s second tax apron and its punitive penalties.
Josh Kroenke has emphasized the importance of planning for the future, especially under the NBA’s new CBA.
“In the NHL, whenever you think about contracts and you start to plan, you have to think a year or two ahead,” Kroenke said, comparing the NBA’s financial constraints to the NHL’s hard salary cap system.
This approach ensures that the Nuggets will retain financial flexibility to keep their core players and make adjustments when necessary, even if it means making tough decisions like letting KCP walk. Fans shouldn’t expect the Nuggets to become reckless big-spenders, but they can be confident that the Kroenkes will continue to make the necessary investments to keep the team competitive. By focusing on sustainable success, the Nuggets are positioned to challenge for more titles in the coming years while avoiding financial pitfalls.
The Kroenkes Will Do What Needs To Be Done For the Denver Nuggets To Be Competitive
The Kroenkes have proven that they are willing to spend to win championships, but their approach is always rooted in financial control and long-term sustainability. Nuggets fans can expect the team to remain competitive around Jokić but within the bounds of a carefully managed payroll. The Kroenkes will not exceed the second tax apron, but their strategic planning will ensure the Denver Nuggets have a championship window for years to come.
