After a phenomenal season, the Denver Nuggets seemed certain about their stance on re-signing Peyton Watson once he became a free agent this summer. Unfortunately, owing to Denver’s cap space issues, the Nuggets put themselves at risk of fielding a $177 million luxury tax bill if they decide to meet the young forward’s contract demands.
Despite being a restricted free agent, the 23-year-old continues to garner interest from teams around the league. Unfortunately, because the Nuggets can’t match his demands for a contract worth $25 million annually, all negotiations are currently at a stalemate. Thus, to alleviate the issue, the Nuggets are reportedly open to a sign-and-trade deal involving Watson.
Currently, there are quite a few teams that are likely to acquire Peyton Watson in a sign-and-trade situation. However, according to NBA insider Jake Fischer, Denver seems to have set its sights on one specific player on the Los Angeles Clippers’ roster.
“Derrick Jones Jr. is an interesting name. I do think as the Clippers move forward in more of a rebuild mode post-Kawhi Leonard, he is a name we’re going to talk about on the trade market,” Fischer stated.
“He’s in the final year of his contract and is extension-eligible. He is someone that I think, in theory, Denver would like back in a potential sign-and-trade if players were involved from the Clippers, too.”
The Clippers would certainly be an interesting trade partner for the Nuggets. Given the large-scale changes the franchise is undergoing after parting with Kawhi Leonard, Los Angeles’ interest in adding a young player like Peyton Watson has also been noted.
Hence, while noting the Nuggets’ interest in Derrick Jones Jr. in a sign-and-trade with the Clippers, here is a potential trade package that could help Denver acquire him:
Proposed Trade Details
Denver Nuggets Receive: Derrick Jones Jr., 2029 first-round pick (IND), 2031 first-round pick (TOR)
Los Angeles Clippers Receive: Peyton Watson
Although this is a relatively simple transaction, the impact for both teams could be significant. With the financial implications being particularly noteworthy, we begin by exploring how it affects both parties.
Financial Impact
Even without Watson on the books, the Nuggets currently have a total payroll of $214.1 million, which is roughly $5.1 million above the first apron and $7.5 million below the second apron. From a financial perspective, this deal is geared to benefit the Nuggets. Given their need to clear salary and avoid paying an exorbitant amount in luxury tax, this trade could be the first domino.
If the Nuggets offer Watson a contract worth $20 million annually, their payroll would rise to $234.1 million, which is well above the second apron ($221.6 million). Instead, by swapping his contract for Derrick Jones Jr.’s $10.4 million expiring contract, the Nuggets’ total salaries would only amount to $224.5 million, making it marginally easier to shed more salary later.
On the Clippers’ side, absorbing Watson’s new contract shouldn’t be challenging in the slightest. With a total payroll of $153.5 million and an outgoing salary of $10.4 million, the Clippers have more than enough cap space to make this deal and remain below the $165 million salary cap.
Overall, this deal is favorable to both teams, though it would require Denver to make additional moves.
How Does This Trade Affect Both Teams?
From a performance perspective, this trade has greater benefits for the Clippers than the Nuggets on paper.
The Clippers are in rebuild mode. However, with a core of Brandon Ingram and Darius Garland, L.A. already has some promising pieces in place. Hence, adding a gifted young forward with two-way upside like Peyton Watson could prove particularly worthwhile.
Last year was a bit of a breakout season for Peyton Watson. After earning a larger role in the rotation, the 23-year-old showed what he was capable of on both ends of the floor, as he averaged 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals, and 1.1 blocks per game.
While boasting elite physical tools and defensive instincts, Watson showcased an improved offensive arsenal. Although he still has room to grow before being considered a polished offensive player, the potential is intriguing.
The Clippers may be quite willing to part with two first-round picks for a player like Peyton Watson. Needless to say, this plays out well in Denver’s favor.
Parting with a talented young player is never easy, but given the circumstances, Denver may be forced to make some decisions. Despite this, the returns in this scenario are quite favorable.
Aside from the draft compensation, which would likely be used as leverage in other trades, the Nuggets would acquire a talented veteran in Derrick Jones Jr. Even though Jones lacks Watson’s ceiling, his experience and two-way upside are promising assets on a title-contending roster.
Last season, Jones averaged 10.1 points, 3.5 rebounds, 0.9 steals, and 1.0 blocks per game while shooting 49.9% from the field and 35.9% from three-point range. As a rotation piece, the 29-year-old brings a lot to the table as a 3-and-D player. Given how Denver’s offense is geared, he would be a solid fit next to players like Nikola Jokic and Jamal Murray.
The biggest benefit of Jones, aside from his ability to contribute, is his contract. Given his expiring contract status, the Nuggets stand to benefit from the potential cap flexibility they could gain once he hits free agency next summer. Overall, the Nuggets stand to lose nothing by acquiring Derrick Jones Jr.
Should The Nuggets Trade Peyton Watson?
Realistically, this trade addresses the issues associated with re-signing Peyton Watson. However, with Derrick Jones Jr.’s contract reflected on the payroll, the Nuggets’ primary issues concerning their salary cap remain unresolved. Since Jones’ arrival doesn’t necessarily address this problem, the Nuggets may see less value in making this trade.
While Jones is a solid veteran asset, it is difficult to see how he is a better acquisition than Peyton Watson. Purely based on potential, there is evidence to suggest that Watson has more upside. This is enough to justify Denver’s inclination to retain him.
If acquiring Jones doesn’t completely address their salary cap problems, it doesn’t make sense to sign-and-trade Watson. On the contrary, if the Nuggets truly prioritize retaining the forward, they would be advised to embrace a more aggressive approach.
Since players like Aaron Gordon would be on the trade block regardless of a hypothetical sign-and-trade involving Peyton Watson, Denver may see more value in simply clearing enough salary to re-sign the 23-year-old. Given what he could bring to the table, this approach may prove worthwhile.
