The Denver Nuggets have reportedly offered Peyton Watson a five-year, $70 million contract amid the growing uncertainty over his future. After locking down Spencer Jones by matching the Thunder’s offer sheet, the Nuggets have now shifted their focus towards deciding on Watson’s future.
According to Tony Jones, a senior Sixers writer for The Athletic, the Nuggets are also gauging the market for potential sign-and-trade offers for the 23-year-old.
“The Nuggets have offered Watson, a restricted free agent, $70 million over five seasons, according to league sources who spoke to The Athletic on condition of anonymity because the deal is not final,” wrote Jones in his latest report.
“The Milwaukee Bucks, Atlanta Hawks and Los Angeles Clippers are also interested in acquiring Watson through potential sign-and-trade opportunities, the league sources said.”
“Thus begins a balancing act for the Nuggets, who have long stated they highly value Watson, and for Watson, who is in line for a second contract,” Jones further added.
“The Nuggets’ payroll is in the second apron because they decided to match Oklahoma City’s offer sheet for Jones. Denver is attempting to move a contract or two to get back under the second apron and clear enough money to retain Watson, the league sources said.”
According to NBA insider Jake L. Fischer, the Nuggets have also made their asking price clear to teams who have gauged a potential trade for Watson. A clear favorite has also emerged among the potential landing destinations for the 23-year-old.
“One source briefed on Watson’s situation said Monday that they see the Bucks as the most likely external suitor to swipe Watson away from Denver.”
“The Nuggets’ overall financial outlook certainly became a bit more complicated after their decision Sunday night to match Oklahoma City’s two-year, $12 million offer sheet to restricted free agent Spencer Jones, which hauled Denver into the second apron.”
“Sources say Denver is still holding out for the equivalent of at least two first-round picks in any sign-and-trade in which it loses Watson,” wrote Fischer in his latest report.
It is important to note that the five-year, $70 million offer is considerably lower in annual average value ($14 million per year) than what Watson was reportedly expecting ($28 million). Therefore, if this is the Nuggets’ final offer, then it is likely that Watson rejects this offer and accepts the qualifying offer to bet on himself for the 2027 free agency.
The 23-year-old had a breakout season where he averaged 14.6 points, 4.9 rebounds and 2.1 assists in 54 games while shooting 49.1% from the field and 41.1% from behind the three-point line. He’s a solid young player to invest in for the long term.
Unfortunately, the Nuggets have already pushed into the second apron after matching Spencer Jones’ offer sheet. So they do not have a lot of room to offer Watson a significant contract where they can meet his demands, find a potential suitor, and not risk seeming like a more desperate team that will have to end up dumping salary for nothing to avoid tax penalties.
But it will surely be fascinating to see what Peyton Watson decides. He was most recently spotted with Michael Porter Jr. in New York. It remains to be seen how he and his representation feel about this offer.
