Three-time MVP Nikola Jokić became eligible to sign an extension with the Denver Nuggets on Tuesday, but has informed the organization that he will not do so this summer, according to the Denver Post. Instead, Jokić will wait until 2026 to begin those discussions.

The Nuggets’ unique new front office – led by executive vice presidents Ben Tenzer and Jonathan Wallace – presented Jokić’s camp with multiple options and was not surprised by his decision, per the Post. Jokić stands to make significantly more money by waiting.

Why is Jokić waiting on an extension?

Jokić, 30, signed a five-year, $270 million supermax extension with the Nuggets in 2022, and remains under contract through the 2027-28 season. Even with his player option for the final year of that deal, the earliest Jokić could become a free agent is 2027. That’s a ways off, but it’s never too early to start thinking about the future with a player of his caliber.

As of Tuesday, Jokić was eligible to sign a three-year, $212 million extension. However, if he waits until next summer he could sign a four-year extension worth about $293 million. That’s not only an additional $81 million but an extra year of security.

The Nuggets would have loved to extend Jokić as soon as possible, but were well aware that he was likely going to prefer to wait.

What does this mean for the Nuggets?

In terms of this season, not much. Jokić is under contract and the Nuggets hope they can compete for a title after a busy summer highlighted by a Michael Porter Jr for Cameron Johnson swap. All of that would have been true regardless of whether he signed an extension this year.

Looking further ahead, the answer depends on how committed Jokić is to the Nuggets.

If Jokić is definitely going to sign an extension, the timeline doesn’t matter all that much. If he had signed this year, he would have voided his player option for 2027-28 and tacked on an additional three years at $212 million. If he waits until next year to sign an extension, he would void his player option for 2027-28 and tack on an additional four years at $293 million.

The latter is obviously a much bigger financial commitment for the Nuggets overall, but not on a per-year basis. Regardless, keeping Jokić is worth it no matter the cost.