The Denver Nuggets have confirmed the signing of Lonnie Walker IV, the former NBA player who has played on teams like the Spurs, the Lakers, and the 76ers over a seven-year career so far. Walker last played in the NBA in 2025 for the 76ers, where he averaged career-highs in almost every statistical category and yet was forced to play overseas.
He ended up playing only 20 games for Philadelphia, but he averaged 12.4 points, 3.2 rebounds, and 2.5 assists while going 42.0% on shooting from the field and 35.4% from three-point range. He was seeking a return to the NBA and has found a chance now with the Nuggets.
It is noteworthy that Maccabi Tel Aviv, the Israeli team that Walker last played for, allowed a special exception for Walker to now agree on a deal with the Nuggets.
“Walker’s pact with Maccabi Tel Aviv had a July 15th NBA out deadline, but he was granted an exit even though Denver’s offer did not surface until August,” wrote the NBA insider Marc Stein after ESPN’s Shams Charania initially confirmed the news.
The Nuggets currently have 14 rostered players after signing Walker. If Denver re-signs Peyton Watson, it would be a full roster for a team that’s already knee-deep in the second apron.
According to AP Hoops, the decision to sign Walker has confirmed that their luxury tax bill would be $85.1 million. If Watson picks up his qualifying offer, that luxury tax bill could exceed $120 million alone.
Combining the confirmed tax obligations as of now with player salaries, the Nuggets are already looking at spending $303.7 million for their payroll. If Watson takes the qualifying offer, that figure jumps to over $350 million for Denver.
But according to Bennett Durando of the Denver Post, this is a training deal and not a confirmed roster spot. Walker will still have to compete for a final roster spot over the summer, potentially until opening night. Hence, as of now, the tax obligations still stand at around $68 million after this move.
If Walker earns the roster spot, then the Denver Nuggets would have another interesting backcourt option, but there is a financial premium that must be paid. The $3.3 million, one-year contract increases the cost of a roster that already has a high luxury tax burden.
Denver might be able to absorb that additional expense because they are a team built around Nikola Jokic and firmly in win-now mode. Walker could provide the Nuggets with another dependable option off the bench by contributing scoring, athleticism, and experience.
The Nuggets will hope that his output justifies the investment, even though his contract might increase the team’s tax liability. For Denver, the equation is simple. The luxury tax bill may be painful, but having another proven NBA player capable of contributing could be worth the price.
It will be very interesting to see if this massive payroll bill converts into championship hopes for the Nuggets. Now, Walker has to prove the investment was worthwhile.
