The off-season for the Denver Nuggets is heating up as reports indicate they have made a significant contract offer to restricted free-agent forward Peyton Watson. According to Tony Jones of The Athletic, the Nuggets have proposed a five-year deal worth $70 million for Watson, but as of now, he has not made a commitment for the upcoming 2026-27 season and beyond. This situation becomes more complex as Watson finds himself among three unsigned restricted free agents in the NBA, alongside Jalen Duren and Bennedict Mathurin.
Watson's decision is pivotal for the Nuggets, especially given his breakout performance last season. In the 2025-26 season, Watson played in 54 games, starting a career-high 40. He averaged 14.6 points, 4.9 rebounds, and 2.1 assists per game while shooting an impressive 49.1 percent from the field and 41.1 percent from beyond the arc. With his efficiency and scoring ability, Watson ranked fourth on the Nuggets in points per game behind star players Nikola Jokić, Jamal Murray, and Aaron Gordon.
Competing Interests for Watson
While the offer from Denver hangs in the balance, interest from other franchises adds further intrigue to the situation. Reports suggest that the Milwaukee Bucks, Atlanta Hawks, and Los Angeles Clippers are interested in acquiring Watson, potentially through a sign-and-trade deal if an agreement can't be reached with the Nuggets. Jake Fischer from The Stein Line has indicated that the Bucks may have the upper hand in attempting to secure Watson, thanks to their collection of young talent and draft picks, as well as a trade exception worth $25.5 million that could facilitate the signing.
However, the Nuggets are not easily budging, as they are reportedly seeking at least two first-round picks in return if they allow Watson to leave through a sign-and-trade deal. This reflects not only the value they place on Watson but also their strategy in building a roster capable of competing for championships.
Nuggets' Financial Situation
The Nuggets' financial landscape has become more complicated after they matched the Oklahoma City Thunder's two-year, $12 million offer sheet for forward Spencer Jones. By matching this offer, the Nuggets have placed themselves in a precarious position, stepping into the second salary-cap apron. This narrows their financial flexibility moving forward, making it crucial for them to retain key players like Watson, who could be integral in their quest for success.
The Importance of Retaining Watson
Given the recent exits of prominent players, including Tim Hardaway Jr., Jonas Valančiūnas, and Bruce Brown, the Nuggets face a delicate balancing act in their roster decisions. Retaining Watson could provide the stability necessary for the team as they look to bounce back from a disappointing first-round playoff exit. The Nuggets are in a win-now mode, especially with a three-time NBA MVP like Jokić leading their roster. Keeping Watson would not only enhance their chances of success in the upcoming season but also solidify their future as a competitive franchise.
As the situation develops, all eyes will be on Watson and the Nuggets. The coming weeks will be pivotal in determining whether he chooses to sign the offer from Denver or entertains the interest from other teams seeking to improve their rosters.
