Carmelo Anthony May Sign Extention With Denver Nuggets: Latest News

Chris Paul started all this speculation at Carmelo Anthony's July 2010 wedding, when the Miami Heat big three were just a glint in Pat Riley's eye.

Paul raised the possibility that he, Anthony and Amare Stoudemire, could unite with the New York Knicks and start a dynasty together. The Knicks have been confident of nabbing Anthony since, and therefore are in no rush to lose any important players in a trade.

A much more interesting scenario, which would prove all booing Nuggets fans wrong, has popped up in recent days. A scenario in which Anthony re-signs and continues to play with the Denver Nuggets.

Being a decent guy, Anthony has told media sources that if no teams stand up and offer a mutually beneficial trade before the deadline, he would be willing to consider a contract extension with the Nuggets.

This puts the Knicks in a position they probably didn't realise they would be in—put up or shut up.

From a financial perspective, staying in Denver may prove to be beneficial for Anthony as well, as he could be forgoing $25 million or more by leaving. 'Melo has been offered a contract in excess of $64 million for three years.

On top of this, if the rumours are true, the NBA may be looking to copy the NFL and introduce a Franchise Tag in the new collective bargaining agreement. A franchise tag means an unrestricted free agent can be held by a team for a year, earning the average salary of the top five players at their position.

If 'Melo were to sign his contract before the new CBA comes through, he may be able to argue that it is illegal to hold him to the rules of a new agreement, because he re-signed under different rules.

With only a couple of weeks left until the trade deadline, it is becoming increasingly likely that Carmelo will stay with the Nuggets.

He is only 26, so if he finds he can't win in Denver he can always jump ship in three years. At that point, no one will begrudge him for chasing a championship elsewhere.