According to Adrian Wojnarowski of Yahoo!Sports.com, the Denver Nuggets have reached an agreement on a contract extension with Wilson Chandler for four years, $46 million.

Denver’s Wilson Chandler agreed to a four-year, $46M extension, league source tells Yahoo Sports.

— Adrian Wojnarowski (@WojYahooNBA) July 12, 2015

This move comes as somewhat of a surprise considering Chandler still had one more year on his previous contract at just over $7 million. That said, Nuggets general manager Tim Connelly has been vocal about his admiration for Chandler’s game so in some sense this shouldn’t come as a surprise at all.

At a price tag of roughly $11.5 million per year Chandler’s new deal may appear bloated upon first glance, however it’s important to keep in mind several noteworthy considerations that factored into his payday…

First, the NBA’s salary cap is projected to spike considerably over the next handful of years as league popularity continues to expand across the globe. The NBA has also struck a new billion-dollar TV deal that will funnel all sorts of cash into the wallets of those associated with any aspect of league functions. Naturally, the average player income will steadily escalate as a result of the NBA’s ongoing monetary robustness.

Where Chandler really earns his money, however, is not the result of an increased NBA salary cap, gaudy box-score numbers or flashy isolation buckets, but rather in the more subtle areas of the game. Chandler is and has for a while been one of the better perimeter defenders in the entire league. He’s also intelligent and extremely versatile — traits any NBA coach would gladly accept. Furthermore, and perhaps most important of all, Chandler actually wants to be in Denver. Despite being overshadowed by Danilo Gallinari since the day he entered the league Chandler has always accepted his role and played to the best of his abilities. And in a league littered with prima donnas more preoccupied with off-court endorsements and big-city nightlife, a guy like Chandler who has his priorities straight both on and off the floor is becoming all the more valuable by the second.

Overall this is another solid signing by Connelly. Between Will Barton and Chandler the Nuggets have locked down two talented and intelligent wings for years to come. And after an intensely quiet start to free agency we’re now beginning to see how Connelly planned to spend his allotted millions this summer as his vision is unfolding more and more with each passing day.