The deadline for rookie-scale contract extensions for the 2023 draft class has officially passed, and the Denver Nuggets stayed quiet. Julian Strawther, the 29th overall pick in the 2023 NBA Draft, was eligible for a contract extension with the Nuggets, but the franchise decided to pass.

With Strawther and the Nuggets failing to reach an agreement on an extension, what happens now? Let's break down exactly what this means for both Strawther and the Nuggets, and why his future with the franchise is in danger.

Restricted free agency

Since Strawther failed to sign a contract extension, he is now set to hit restricted free agency next offseason. Of course, this is not the end of the world, but in the current state of the NBA and the latest CBA implications, these young players are hurt by restricted free agency. Strawther would've much rather signed an extension, but he now has to face the wrath of RFA next summer.

However, this does not mean he is playing his final season in Denver. The Nuggets will have the opportunity to re-sign him next offseason, with the ability to match any offer he receives on the market. As we saw with Spencer Jones this offseason, the Nuggets matched the two-year, $12 million offer he accepted from the Oklahoma City Thunder.

Strawther is talented enough to have a future in Denver, and this will be his season to prove it. Unfortunately, he is set to be sidelined for the first several weeks of the season with a knee sprain, but once he returns, he should have a significant role in the lineup and plenty of opportunities to show what he's worth.

Why the Nuggets passed on an extension

As promising as Strawther has been for the Nuggets, there was a very small chance they would agree to a contract extension.

THE JULIAN STRAWTHER GAME 😤

🔥 15 PTS
🔥 3-4 3-PT FG
🔥 Helps force Game 7 pic.twitter.com/CKT8ye21cH

— NBA on ESPN (@ESPNNBA) May 16, 2025

Given the Nuggets' tight financial situation, Strawther's inconsistent play over the past few years, and an unfortunate trend of extensions that have not worked in their favor, it makes sense for Denver to pass on a new contract for the 24-year-old.

Last year, the Nuggets had two opposing situations. They signed Christian Braun to a five-year, $125 million extension. They passed on the opportunity to sign Peyton Watson to an extension. Obviously, neither situation worked out in their favor, as Braun seems wildly overpaid, while they lost Watson in restricted free agency.

The Nuggets played it safe by passing on an extension, and if he overperforms this season to prove them wrong, they'll have the opportunity to keep him next summer.

What will happen?

As much as some fans love having Strawther in Denver, his future is far from safe. If he gives the Nuggets a reason to re-sign him in restricted free agency next summer, then great. But if not, we are likely seeing the last of him as a Nugget.

If I had to guess, Strawther is playing his final season in Denver. However, he could pull a Watson and prove to the Nuggets that they need to keep him around, and hope his price is not too steep for them to consider a long-term deal.