Denver Nuggets are on the ropes with Peyton Watson: three teams threaten to take him away

Denver Nuggets faces one of the most delicate decisions in the entire NBA market with Peyton Watson. The young forward is a restricted free agent, and Milwaukee Bucks, Los Angeles Clippers, and Atlanta Hawks are actively pursuing his acquisition through a sign-and-trade. Denver has mechanisms to try to keep him, but their massive salary cap turns a renewal that seems evident from a sports perspective into a real economic threat for the franchise's future.

The problem has worsened after the Nuggets decided to match the offer from Oklahoma City Thunder for Spencer Jones, estimated at around 12 million dollars for two seasons. Denver retains another important role player, but further escalates a payroll that was already the highest in the NBA, positioning them above the second apron even before resolving Watson's future. The dilemma is significant: keeping the core intact allows them to continue competing around Nikola Jokic, but doing so could lead to an extraordinary financial burden and sporting restrictions that could heavily impact the coming years.

Peyton Watson has become too valuable to let go

The difficulty of the decision is largely due to Watson's spectacular evolution. The 23-year-old forward made a significant leap forward last season, averaging 14.6 points, 4.9 rebounds, and 2.1 assists, showing that his potential went far beyond the defensive specialist that Denver had developed during his early years in the league.

His combination of size, wingspan, intimidation, and ability to defend different positions is especially valuable in today's NBA, but his offensive growth is what has significantly increased his value. Watson has begun to consistently punish from the outside, attack spaces, and create his own opportunities, even achieving remarkable performances like 35 points, eight rebounds, and four blocks against the Washington Wizards in January.

Losing him would be particularly painful for the Nuggets because he is exactly the type of player they need around Nikola Jokic and Jamal Murray: young, athletic, capable of handling demanding defensive tasks, and without the need to dominate the ball. After years in which roster depth has been one of Denver's major headaches, parting ways now with a player developed in-house would mean weakening a rotation once again that needs legs and youth.

Bucks, Clippers, and Hawks seriously threaten Denver

The issue for the Nuggets is that the rest of the NBA is well aware of their situation. Milwaukee, Clippers, and Atlanta are among the suitors for Watson and can leverage Denver's enormous financial difficulties to try to negotiate a favorable sign-and-trade. Interest from several franchises in the player has been ongoing during the early weeks of free agency, while Denver and his representative have remained distant in contract negotiations.

The Bucks might see in Watson a young piece to start rejuvenating a project with huge doubts after Giannis Antetokounmpo's departure. In the Los Angeles Clippers, his physique and ability to defend different profiles would fit perfectly in a roster needing to add youth, while the Atlanta Hawks have a project more in line with his age and could offer him a significant role from the outset.

Denver holds a position of strength because Watson is a restricted free agent, but having the right to match an offer does not mean it is reasonable to do so. That is precisely the dilemma that may push the Nuggets towards a sign-and-trade: turning the potential loss of the player into some form of return and avoiding a financially unsustainable situation.

The economy threatens to break the Nuggets' project

The real problem arises when looking at the finances. Just the contracts currently on Denver's payroll already exceed 211 million dollars for 2026-27, with Jokic around 59 million, Murray over 50, Aaron Gordon at 33.7, Cameron Johnson over 23, and Christian Braun at 21.6.

In addition, there is now the decision to retain Spencer Jones and potentially a new contract for Watson. The scenario becomes overwhelming. An estimate by the salary expert Bobby Marks, considering 23 million dollars for Watson, would place the payroll around 246 million and the luxury tax bill at another 231 million. In other words, an approximate total cost of 477 million dollars to keep the roster. The magnitude is even more evident considering that Denver would have paid around 53 million in luxury tax penalties throughout its history since 2002-03.

It is not just about owners being willing to spend more for one season. Remaining above the second apron carries significant limitations for roster building, progressively restricting a franchise's ability to operate in the market and turning each contract misstep into a much more complex problem to solve.

Maintaining the core could end up being counterproductive

Herein lies the great paradox for Denver. The natural drive for any franchise with Nikola Jokic at his peak should be to retain as much talent as possible and compete for the championship. Letting Watson go solely to save money would be hard to justify from a strictly sporting perspective.

However, keeping absolutely everyone also does not guarantee anything.

Denver risks mortgaging its flexibility for years to keep a core that needs to prove it is still good enough to win the title. Massive contracts like those of Murray, Gordon, and Braun, combined with the inevitable cost of Jokic, have built an extremely rigid salary structure. If any of those players underperforms, experiences physical issues, or fails to justify their contract, correcting the course will be tremendously challenging.

The Nuggets will have to consider more impactful moves for this reason. The problem might not be deciding between Watson or letting him go but rather determining which established player should leave to retain him and rejuvenate the project without destroying the finances.

Denver must decide how much it is worth paying to compete

That is the debate that will shape the coming weeks in Colorado. The Nuggets have the strongest argument imaginable to take financial risks: Nikola Jokic. As long as the Serbian remains at his prime, any season in which Denver voluntarily gives up talent could become a missed opportunity to win another championship.

Moreover, Peyton Watson does not seem like a dispensable luxury. At 23 years old and with the progression shown, he can be part of both the present and future of the Nuggets, something particularly important in a roster where the main contracts belong to considerably older players.

Nevertheless, the current NBA economy requires setting boundaries. Denver has just taken on a new commitment by matching the offer for Spencer Jones and now faces an even more critical decision with Watson. The Bucks, Clippers, and Hawks await any sign of weakness to swoop in.

The Nuggets can keep the current competitive core, but the price threatens to be historic. Retaining Peyton Watson without making any other moves could raise the bill to extraordinary levels and chain Denver to an extremely difficult-to-change salary structure. Letting him go, on the other hand, would mean losing one of their best young talents in Jokic's competitive window. The franchise has reached a point where they can no longer postpone major decisions: keeping everyone is starting to be as risky as getting rid of them.

This is an automatic translation. You can read the original news, Denver Nuggets, contra las cuerdas con Peyton Watson: tres equipos amenazan con llevárselo