One of the most talked-about conversations in free agency has been with Denver Nuggets restricted free agent Peyton Watson.
Watson, 23, remains unsigned heading into Tuesday. The Nuggets seem to be stuck at a standstill with the guard while balancing financial burdens. After re-signing restricted free agent Spencer Jones to a two-year, $12 million contract, Denver is in the NBA’s second apron.
With this factor in play, a sign-and-trade involving Peyton Watson is gaining momentum.
“In a potential sign-and-trade, the Nuggets initially had set a price this offseason of similar to the Walker Kessler deal of two firsts and two swaps in any potential deal,” said ESPN’s Shams Charania. “Now that price, my understanding is, is a really good high-level player as well as a first-round pick.”
Nuggets Offer Five-Year, $70 Million Deal to Peyton Watson
GettyThe Denver Nuggets have offered a five-year, $70 million contract to restricted free agent Peyton Watson. However, the idea of signing a $6.5 million qualifying offer that will make him an unrestricted free agent next offseason is still on the table. (Photo by Matthew Stockman/Getty Images)
Recently, the Denver Nuggets have offered Peyton Watson a five-year, $70 million deal, league sources told The Athletic’s Tony Jones.
This number is one that other teams have to match, as the Nuggets have set the standard for other teams pursuing Watson in restricted free agency. The Atlanta Hawks, Los Angeles Clippers, and Milwaukee Bucks are three teams that are interested in acquiring the 23-year-old in a sign-and-trade, Jones said.
Denver is looking to trade “a contract or two” on the roster to create more cap space to extend Peyton Watson, Jones added.
After the Spencer Jones deal, the Nuggets are $1.88 million over the NBA’s second apron, according to Spotrac.
Taking a $6.5 million qualifying offer is still on the table for Peyton Watson, says CBS Sports’ Sam Quinn.
Doing this would make Watson an unrestricted free agent after next season. With Watson taking this deal, he would be able to prove to other NBA franchises what he’s truly worth in 2026-27. This carries the possibility of exceeding expectations.
Peyton Watson Heads Into 2026-27 With a Chip on His Shoulder
GettyRestricted free agent Peyton Watson has a lot to prove in 2026-27. A recurring hamstring strain limited the 23-year-old to 54 games last season. (Photo by Jamie Schwaberow/Getty Images)
Peyton Watson is going to be playing in 2026-27 with something to prove. A lingering hamstring strain limited the 23-year-old to just 54 games in his breakout season.
Watson missed 19 games with the original setback and would re-injure it in the final week of the regular season. This resulted in Watson missing the entire postseason as well.
In the games he was available, Watson stepped up for an injury-riddled Nuggets team. Averaging 29.6 minutes per game, Watson contributed career-highs in points (14.6), rebounds (4.9), and assists (2.1) on 49.1/41.1/73.0 shooting splits.
After a complete offseason of rest, Watson will look to put the leg injury behind him. The real question is which team he will be with.
If a deal gets done with the Nuggets, expect players already on the roster to head out.
Nuggets Seek High-Value Pieces in Peyton Watson Trade: Report