The Denver Nuggets have announced plans to bring back local standout KJ Simpson by signing him to a two-way contract, sources told The Denver Post. This move follows the team’s decision to convert Spencer Jones to a standard NBA contract, freeing up a two-way spot. Simpson, a former University of Colorado star, was waived by the Charlotte Hornets shortly after the trade deadline this month as he seeks to revitalize his NBA career.
Simpson, 23, was selected 42nd overall in the 2024 NBA Draft by Charlotte. Over two seasons, he appeared in 50 games, starting 17, and averaged 7.3 points, 2.8 rebounds, and 2.9 assists per contest. Standing 6-foot-2, Simpson adds important ball-handling depth to a Nuggets roster preparing for a tight final stretch of the regular season. Entering post-All-Star break play, Denver is third in the Western Conference but holds just a slim three-game edge over seventh place as they faced the LA Clippers.
Details Behind Simpson’s Role and Two-Way Contract Limitations
Simpson will join fellow rookies Curtis Jones and Tamar Bates as the trio of guards occupying Denver’s two-way roster slots. While this arrangement enables players to divide their time between the NBA and G League, Simpson will not be eligible to participate in playoff games while on this contract type. For the Nuggets, it means added flexibility and reinforcement during the regular season while managing roster and salary constraints.
Simpson’s college career was notable for its consistency and impact. He played 98 games across three years at Colorado, earning First Team All-Pac-12 honors as a junior. His clutch performance during the 2024 NCAA Tournament, including a game-winning shot against Florida that propelled CU to the second round, helped cement his place in program history. That season, Colorado established a new school record with 26 wins. Simpson’s fellow 2024 draftees Tristan da Silva and Cody Williams also contributed to that milestone.
Impact on Nuggets’ Guard Depth and Team Dynamics
The Nuggets have faced challenges maintaining consistent guard availability amid injuries and lineup shifts. Recent lineups have included complementary guards Jalen Pickett and Julian Strawther, who have been used strategically to offset absences. Tim Hardaway Jr. remains a key scorer off the bench and has also been called upon to close out games throughout the season.
Denver’s G League affiliate, the Grand Rapids Gold, has been hampered by the extended absences of key players like Jones, Bates, and DaRon Holmes II over the past two months. Jones and Holmes have been assigned to Denver’s NBA squad, while Bates has been sidelined due to injury. Simpson’s addition should help fill gaps in both the NBA roster and G League team, providing crucial depth as the Nuggets navigate the season’s demands.
Spencer Jones’ Contract Situation and Implications for Nuggets’ Salary Cap
Spencer Jones, who was recently upgraded to a standard contract, faces a potentially complicated free agency this summer. Having started 34 games before the All-Star break, Jones edges toward qualifying for the NBA’s “starter criteria,” a Collective Bargaining Agreement provision that could increase his qualifying offer to over $5 million if he surpasses 41 starts this season. Sources indicate this threshold is looming, which could place a strain on Denver’s financial flexibility.
Alongside Jones, restricted free agents Peyton Watson and other key contributors Christian Braun and Aaron Gordon, who have contract raises pegged to their recent extensions, the Nuggets face a payroll swell expected to thrust them back into the luxury tax as early as July. The team must decide whether to absorb the tax or manage payroll below designated thresholds, including the first or second apron limits.
Roster Management Challenges Ahead for Denver
Given these financial constraints, the Nuggets will have limited capacity to offer salaries above the minimum on the lower half of their roster. This situation places pressure on players who occupy fringe spots on the team, and Jones himself might become expendable if his number of starts nudges Denver too deep into salary complications. The franchise must carefully balance maintaining competitive depth with managing a growing salary burden.
Tensions around roster spots and salary cap management reflect the intense, highly competitive atmosphere the Nuggets face as they strive to maintain their standing in the Western Conference. The team’s strategic moves, including signing Simpson to a two-way deal, demonstrate their efforts to build flexibility and resilience amid ongoing challenges.
Understanding Two-Way Contracts and Player Development
Two-way contracts allow players to shuttle between the NBA and G League, providing opportunities to develop while supplementing team depth without committing full roster spots. For Denver, this system has helped manage injuries and player availability throughout the season. With Simpson joining Curtis Jones and Tamar Bates in this setup, the Nuggets deepen their pool of guards ready to contribute when called upon during the regular season stretch.
These contracts also offer teams room to maneuver around the salary cap and luxury tax thresholds, which are particularly relevant given Denver’s current financial outlook. Players on two-way deals are restricted from playing in the NBA playoffs, emphasizing their role primarily as developmental or supplementary talents.
Looking Ahead: What This Means for the Nuggets’ Season and Future
Simpson’s return to Denver marks a homecoming for the guard and adds an extra layer of flexibility to the Nuggets’ backcourt. As the postseason draws near with Denver battling to protect their position in a crowded Western Conference, the team must manage its roster carefully amid looming salary cap challenges. Simpson’s role, while limited to the regular season under a two-way contract, could prove vital in shoring up ball-handling and playmaking options.
At the same time, decisions around players like Spencer Jones will carry financial and competitive consequences during the offseason. Whether the Nuggets choose to pay the luxury tax, strategize to stay below thresholds, or make difficult roster cuts remains to be seen, but the franchise faces a tense balancing act.
For now, KJ Simpson’s signing reflects the Nuggets’ commitment to leveraging local talent and building a roster capable of weathering the demanding NBA calendar. The team’s management and coaching staff will continue to navigate a complex landscape of contracts, injuries, and on-court performance as they push toward playoff contention.
