At the start of the 2025-26 season, the Denver Nuggets looked set to compete for the NBA title. Unfortunately, after crashing out of the playoffs in the second round, the Nuggets return to the drawing board with some serious questions about their roster, especially those regarding Peyton Watson.
Having earned a larger role in the Nuggets’ rotation last season, Peyton Watson flourished (14.6 PPG, 4.9 RPG, 2.1 APG, 0.9 SPG, 1.1 BPG), showing tremendous potential to become a vital contributor for years to come. However, with Watson also due to enter free agency, the Nuggets’ front office is likely to face a dilemma when negotiating his contract, according to ESPN’s Bobby Marks.
When shedding light on the situation of the key restricted free agents in this year’s offseason, Marks shared:
“What are the Lakers, Nets, and Bulls going to do with their money? Are those teams that are willing to come and put a significant offer sheet down on a player like Peyton Watson, Tari Eason, or Jalen Duren? I always say that teams have an advantage, until they don’t.”
Marks’ statement seems to ring true in the Nuggets’ case. As a restricted free agent, Peyton Watson is in a relatively difficult position with no leverage in contract negotiations. However, should another team with ample cap space step in with a lucrative offer, the Nuggets may face some challenges in matching it at this stage.
To that note, Marks continued by stating how rare it truly is for a team to make such an offer for a restricted free agent.
“We haven’t seen a big offer sheet come through since Ayton in Indiana, and that was like in 2022. So, that hasn’t come into play… Yeah, if you’re looking at it, whether it’ll be $22-$23 million, I think how the CBA is, it’s almost like you get slotted by where you are on that pecking order from a roster standpoint. But I think, for Denver, it’s are you comfortable with that number?”
Marks continued by noting the moves that Denver would be forced to make to clear up enough cap space this summer. Given that they are already expected to have a cap hit of $215.4 million, some drastic measures will be necessary.
Marks suggested that the Nuggets could stretch Jonas Valanciunas‘ $10.0 million contract. While he also mentioned there may not be many obstacles in re-signing Peyton Watson, the Nuggets may be forced to let go of key role players such as Tim Hardaway Jr. and Bruce Brown in free agency.
Currently, the Nuggets’ commitment to Nikola Jokic appears to be the only constant, especially since he is eligible to sign a four-year, $278 million contract soon. But considering how invested the front office seems to be in Peyton Watson, there is reason to believe Denver may be facilitating trades to ensure he remains with the team.
The path to retaining Watson seems fairly clear, with rumors suggesting that Cam Johnson and Christian Braun are on the trade block. With the Nuggets set to enter luxury tax territory regardless, it is simply a matter of how committed the franchise is to retaining Watson.
