By Tom Canavan
The Associated Press

EAST RUTHERFORD, N.J. - The New Jersey Nets acknowledge they went from a championship contender to the middle of the pack in making a business decision to trade Kenyon Martin to Denver.

Ex-U.C. Bearcat Kenyon Martin was traded Thursday from the New Jersey Nets to the Denver Nuggets for three future first-round draft picks. (AP photo)

"When you lose this kind of piece, unless we get very fortunate, we are not going to be a championship contender," team president Rod Thorn said Friday, a day after dealing his All-Star power forward to the Nuggets for three future first-round draft choices.

"We fully expect to be a playoff contender," Thorn said. "But, again, I am not going to insult anybody's intelligence by saying we are going to be a championship contender without Kenyon."

Thorn and new Nets owner Bruce Ratner spent the past two weeks trying to find ways to keep Martin, a restricted free agent who was wooed by the Atlanta Hawks and Nuggets. Thorn also talked with Brian Dyke, Martin's agent, about a new contract.

However, the Nuggets forced Thorn and the Nets into a sign-and-trade deal with an offer sheet that included about $30 million in upfront money.

Had the Nets been forced to match Denver's proposed deal, it would have cost New Jersey between $45 million and $50 million next season in bonuses and luxury taxes.

If the Nets did not match the offer, they would have gotten nothing for Martin.

Thorn and Ratner also concluded that the Nets might have peaked in their championship quest with a big three of Martin, Jason Kidd and Richard Jefferson and that they needed to go in a different direction. They went to the NBA Finals in 2002 and 2003, then lost in the Eastern Conference semifinals this year to Detroit, the eventual champions.

"When you look at it from the long range for this team, it was something we thought was the correct decision," Thorn said. "We're taking a step backwards, there's no doubt about it. But sometimes you have to take a step backwards in order to take a step forward."

Hoping to avoid a potential Martin-like problem next season, Thorn said that a contract extension for Jefferson will be discussed next month.

Thorn spoke on Thursday with Kidd and assured his All-Star point guard that he will do everything he can to keep the team competitive. His first priority will be signing a power forward.

The trade did not go over big with Martin's teammates, Thorn said.

"Kenyon was not only a terrific player, but he was a leader, he was respected in the clubhouse," Thorn said. "I don't know any player that's happy about it except maybe somebody who might get more playing time."

Thorn also asked Nets' fans to stick with the team.

"We definitely expect to remain competitive," Thorn said. "Tough decisions - any business that you are in, you are always faced with very tough decisions from time to time. This was a monumental decision for this franchise, no doubt about it."