It is pretty clear now that Melo has told Kroenke and Ujiri that he will only sign the extension with the Knicks. Period. He agreed, however, to allow Kroenke and Usiri to go make the best deal possible with New Jersey, one that would bring players into Jersey that would ensure they are competitive now and make Newark an attractive destination, and he would sit down and talk with the Denver FO about the deal they put together. He didn't close the door on signing an extension with Jersey if they could put together an attractive landing spot with the Nets.
The deal the Denver Front Office has put together, one that includes Billups and Hamilton, is close to finalized, and the next step will be to sit down and discuss what they have together with Melo. My guess is the current deal is not enough for Melo to sign the extension with Jersey. Is the addition of Billups, a solid but aging PG, and Rip, a player on the downside of his career, enough for Melo to give up his dream of playing for the Knicks?? I don't think so. WIll Jersey make the deal without Melo signing the extension? I don't think so. You give up your 3rd pick in the draft, your best player, and a couple of 1st rounders for 1/2 a season rental of Melo. Nyet!
So, ultimately, the Nuggets will either make a deal with the Knicks, trade Melo as a rental (to Dallas or Houston for 10 cents on the dollar) or ride the season out. with Melo and do a sign and trade then My guess this thing doesn't play out until very close to the trade deadline in February. Can we now just enjoy a full roster for a few weeks??