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Originally Posted by YankeePride
I think this works for the Nuggets.
They have so much cap space and need to spend it. They need to spend it because in a couple of years they'd be tied up to paying the guys they already have on the roster and thus having no cap flexibility.
By adding a player of Martin's caliber (even if overpriced), they add another player that they can tie up when their cap space become unflexible. They can still sign Nene and Anthony to whatever they want and jump the cap.
If they keep holding on to their money they'll end up spending it on the players they already have and have one/two less players.
Smart move because Martin is a good player. They might not have room for him, but they needed to spend the cash for the future.
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Spending money simply for the purpose of spending it is
never a smart move. An owner still has to be financially responsible for his team. The Denver Nuggets aren't and will never be the New York Knicks. They need to keep a modest payroll in order to break even or make a profit. The two main goals of any owner are to win, and secondly, to make money. The thing is those two variables are almost always linked. Winning makes you more money. Spending money wisely gets you winning. They are in direct correlation.
What you are suggesting now is spending money, which is fantastic, except it isn't money put to use judiciously. Eighty million dollars spent on a slight roster upgrade that will most likely be eliminated in one or two years as Hilario progresses as a player doesn't make sense. If in a few years, the Nuggets find themselves in a tight hole financially, I certainly wouldn't want to be the GM who couldn't resign Carmelo Anthony because he signed Kenyon Martin three years ago to a max contract.