The Denver Nuggets‘ interest in DeMar DeRozan arrives at a particularly complicated moment for a franchise already confronting the financial consequences of its offseason decisions.
Denver is among the teams pursuing the six-time All-Star, ESPN’s Shams Charania reported on NBA Today. The Miami Heat and Cleveland Cavaliers also have emerged as suitors for DeRozan, giving the veteran scorer multiple options as the Nuggets remain locked in a contract stalemate with restricted free agent Peyton Watson.
“Probably the biggest name guy right now, DeMar DeRozan, six-time All-Star,” Charania said. “I’m told Miami, Denver and Cleveland are among the teams interested in DeMar DeRozan, a scorer, playmaker, a clutch performer down the stretch of games.”
Denver’s interest is understandable. Its ability to complete another meaningful addition is considerably more complicated.
Denver Goes Above Second Apron
The Nuggets already became the NBA’s only projected second-apron team entering the 2026-27 season after matching Spencer Jones‘ offer sheet from the Oklahoma City Thunder. Now, Watson’s unresolved free agency threatens to push an already expensive roster deeper into luxury-tax territory.
NBA insider Marc Stein reported Sunday that Watson has considered accepting his one-year, $6.5 million qualifying offer if a sign-and-trade or improved long-term contract does not materialize. That route would allow Watson to become an unrestricted free agent in 2027, but it would require him to turn down substantial guaranteed money and assume the risk of playing next season without long-term security.
The Nuggets’ initial proposals were believed to be worth approximately $70 million over four years, according to Stein. Watson is seeking a richer deal, particularly after Denver gave Christian Braun a five-year, $125 million rookie-scale extension last October.
That gap has left the Nuggets with two separate but connected roster questions: how much they are willing to spend to retain one of their most versatile defenders, and whether they can create a workable path to add another established scorer.
Nuggets Pursue DeMar DeRozan While Watson Talks Stall
Getty The Nuggets are exploring DeMar DeRozan while Peyton Watson’s unresolved restricted free agency continues to cloud Denver’s offseason plans.
DeRozan would address a need that has followed Denver through multiple postseason runs.
The 36-year-old averaged 18.4 points, 4.1 assists and 2.9 rebounds in 77 games last season. He remains an effective midrange scorer, secondary playmaker and late-game shot creator — three attributes that could reduce the offensive burden on Nikola Jokić and Jamal Murray.
Denver has struggled at times to create dependable offense when Jokić rests or when opponents force the ball away from him late in games. DeRozan could stabilize bench-heavy lineups, punish mismatches and provide another player capable of manufacturing a quality possession when the Nuggets’ usual actions break down.
Peyton Watson Situation Could Shape Denver’s Next Move
The fit would not be seamless. DeRozan is not a high-volume 3-point shooter, and his defensive limitations would require Denver to carefully structure lineups around him. Losing Watson in the process would only magnify that concern.
Watson’s length, athleticism and ability to defend multiple positions remain important for a roster built around Jokić. DeRozan would supply offense, but he would not replace Watson’s role on the other end.
The financial math is just as daunting.
ESPN front office insider Bobby Marks projected Denver’s current luxury-tax penalty at approximately $68 million after the Jones decision. If Watson accepts the qualifying offer, that figure could rise to roughly $112 million.
Jones’ deal begins at $6 million this season before declining to $5.75 million in 2027-28. He also cannot be traded without his consent during the upcoming season and cannot be sent back to Oklahoma City, further limiting Denver’s flexibility.
That leaves the Nuggets attempting to pursue DeRozan while operating under the NBA’s most restrictive payroll rules and negotiating with a restricted free agent who appears willing to consider one of the league’s riskiest contract strategies.
Miami can pitch DeRozan on a prominent role alongside Giannis Antetokounmpo and Bam Adebayo. Cleveland can offer another path to contention in the Eastern Conference. Denver’s case centers on playing with Jokić and filling a clear offensive need for a team still chasing another championship.
Before the Nuggets can determine how aggressively to pursue DeRozan, however, they may need clarity from Watson.
Denver’s interest in the six-time All-Star shows its front office is still exploring ways to improve an expensive roster. Whether it can turn that interest into a deal may depend on resolving the standoff already threatening to make its offseason even costlier.
Nuggets Eye 6-Time All-Star Amid Costly Peyton Watson Stalemate