Deadline set for Nuggets, Trey Lyles to agree on contract extension

The Denver Nuggets and forward Trey Lyles have until Oct. 15 at 6 p.m. EST to agree on a contract extension.

First round draft picks from 2015 who are set to play next season on the final year of their rookie contracts have until the last day before the start of the regular season to agree to a rookie extension. With the NBA announcing earlier this week that the regular season will tip off Oct. 16, the Oct. 15 deadline was set. If the Nuggets and Lyles don’t agree to an extension before Oct. 16, the 22-year-old will enter restricted free agency next summer.

In total, 23 fourth-year players became eligible for rookie contract extensions this summer. Some, like the Suns’ Devin Booker, already agreed to a new deal with their original team. Others like Karl-Anthony Towns and Kristaps Porzingis are expected to agree to new contracts with the Timberwolves and Knicks respectively before the deadline.

Last fall under similar circumstances, the Nuggets and Gary Harris agreed on a four-year extension that kicks in at the start of next season.

After acquiring Lyles from the Jazz during the 2017 draft, the Kentucky product appeared in 73 games for the Nuggets last season and averaged a career-high 9.9 points per game. Lyles also averaged career-high marks in field goal percentage (49.1) and three-point percentage (38.1), rebounds (4.8), assists (1.2) and blocks (0.5).

Lyles beat out Kenneth Faried for the backup power forward job during training camp and was thrust into a more prominent role when Paul Millsap suffered a left wrist injury in November that caused Denver’s marquee free agent signing to miss 44 games.

In December, Lyles averaged 14.7 points on 54.0 percent shooting from the field and 48.5 percent from three, to go with 6.6 rebounds in 27.5 minutes per game. Lyles followed up his career month by posting similar offensive numbers in January, although his shooting percentages dipped to just below 50 percent from the field and 40 percent from three.

When Millsap returned to the Nuggets’ lineup on Feb. 27 against the Clippers, Lyles’ role shrunk. He averaged just 13.6 minutes over the Nuggets’ final 22 games of the regular season and recorded four DNP-Coach’s Decisions over that span, the last of which came in Denver’s season finale in Minnesota.

“It’s definitely frustrating, but playing behind an All-Star power forward you’ve got to take what you can get,” Lyles said at the time. “Knowing that he’s back, I realize that. I’m not happy with it, but I’m going to do the best I can for the team and help them win and be a good teammate and a good professional.

“I knew once Paul got back into the rotation, my minutes were going to get cut some. I’ve been preparing for it. It happened the other day, so I’m going to continue doing what I did before when I wasn’t getting many minutes. When I get my opportunity, I’ll do what I’m supposed to.”

Lyles’ demotion in the Nuggets’ rotation wasn’t because of his play, but due to a numbers game. Denver had four big men — Lyles, Millsap, Nikola Jokic and Mason Plumlee — worthy of rotation minutes but in a league that’s downsizing more and more with every week and month that passes, the Nuggets couldn’t match up effectively against their opposition when playing four frontcourt players late in the season.

“Personally, it was up and down from not playing, to playing a lot, to playing a little bit, to not playing at all,” Lyles said at his exit interview. “But that’s how it goes. This summer I’m looking forward to getting and making sure that I’m playing all the time.”

If the Nuggets and Lyles want to negotiate an extension this fall, Denver certainly has the capital to get a deal done. The Nuggets could enter next summer with enough cap space to absorb Lyles’ extension and still make a splash on the free agent market. The 6-foot-8 forward is set to make $3.4 million next season. Lyles’ potential extension would start in 2019-20.

After his breakout year, Lyles is on track for a more consistent and steadier role next season. Lyles can provide an ample scoring punch to a Nuggets’ second unit that’s in need of consistent scoring options. But what’s Lyles future role in Denver? Is he the Nuggets’ future at starting power forward. or does Denver see him as a contributing piece off its bench for the next few years?

How the Nuggets view Lyles’ long-term outlook could determine what type of extension the two sides agree to if they do come to terms prior to Oct. 16.