Filed under: Nuggets, NBA Rumors, Denver

Chris Tomasson of the Rocky Mountain News punches in a piece asserting the Nuggets and the camp of Allen Iverson have discussed a contract extension which could keep The Answer in Denver through 2010-2011 (or longer). On first glance, already salary-addled Denver would seem to be adding to its burden. But Tomasson notes this deal could save the Nugs some cash next year.

Obviously, a key factor would be what the contract numbers might be. If Iverson, in exchange for additional contract years, were to sign a new deal that paid him $5 million less next season, the Nuggets would save $10 million due to the dollar-for-dollar luxury tax.

As the frequency of major trades has ticked upward in recent years, there seems to a vogue toward erasing payroll (and its associated luxury tax pain) in the immediate term with the hope you can tinker around the edges later. This sort of plan — increase the length of your financial burden with A.I., but find a way to shrink your obligations for just next year — does just that. Sure, 2010-11 looks like it will suck, with $17 owed to Carmelo Anthony, $16 million for Kenyon Martin, and $11 million for Nene. But there’s plenty of time to worry about that; the key is finding some breathing room in 2008-09.

It doesn’t hurt that Iverson is precisely the sort of player who won’t likely see his trade value fall over a cliff one of these summers. A.I. had a good season in Denver, and despite what you’ve heard Denver had a good season. This is a smart move (depending on the dollars).

And Tomasson doesn’t mention it, but … there exists the possibility that A.I. opts out in order to take Denver’s deal, but another team steps in to offer more money. There’s no indication A.I. would leave, but you can never bet against teams taking extreme measures to land a talent like Iverson.

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