What the price for Peyton Watson means for the Milwaukee Bucks

The Milwaukee Bucks have been one of the few teams interested in Denver Nuggets forward Peyton Watson this offseason.

Denver's financial situation was already complicated with the multiple big contracts on their roster, but once the Nuggets decided to match the Oklahoma City Thunder's two-year, $12 million offer sheet for forward Spencer Jones, his contract pushed Denver into the second apron and will now face a $68 million tax penalty.

The choice to bring back Jones forces the Nuggets to make a decision for Watson. The 23-year old is a restricted free agent and Denver initially offered him a five-year, $70 million contract (14 million annually) according to Tony Jones of The Athletic.

However, he's seeking between $25 million and $28 million annually, a contract that exceeds his teammate Christian Braun.

Watson is coming off a breakout season where he averaged 14.6 points, 4.9 rebounds and 1.1 blocks per game, on 49.1% shooting from the field and 41.1% from the 3-point line.

The Nuggets value Watson as he's on the of premier two-way players in the league, but not being able to offer him the contract he wants puts them in a tough situation.

At the very minimal, their luxury tax penalty will increase to $112M with the Peyton Watson Qualifying Offer. https://t.co/TLTTXxfEZ7
— Bobby Marks (@BobbyMarks42) July 27, 2026

According to Jones, Denver is attempting to a contract or two to get under the second apron and clear enough money to keep Watson, but if they can't then a sign-and-trade for Watson is a backup plan.

Milwaukee has been one of the teams linked to Watson and according to NBA Insider Jake Fischer, the Bucks are the most likely team to land Watson.

The Bucks hold a $25.5 million trade exception from the Giannis Antetokounmpo trade, but with them being close to both the luxury tax line and the first-apron hard cap, they'll have shed a contract or two to make a competitive offer.

"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," Fischer said.

However, if Milwaukee is serious about pursuing Watson, then they'll have to pay the price to get him, as Fischer also reported that the Nuggets want two-first picks in any trade for the forward.

The Denver Nuggets reportedly want two first-round picks in any trade for Peyton Watson, per @JakeLFischer

“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… pic.twitter.com/puQGpPh0FS
— NBACentral (@TheDunkCentral) July 28, 2026

"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.”

If the Bucks do decide to actively pursue Watson and trade two first-round picks for him, it's going to be a questionable choice.

Milwaukee isn't in the position to give up future draft capital as they're navigating a rebuild with a young team. As talented as Watson is, it's going to be a high-risk to trade for him after coming off an a career-year.

The Nuggets were in the similar situation with Braun after they gave him five-year, $125 million rookie contract extension in 2025, but saw a regression this season as he battled injuries and his efficiency took a dip.

Not to say the same thing will happen with Watson, but it's hard to know how much he'll move the needle and help the Bucks this upcoming season for two future first-round picks that Milwaukee could use.

Add us as a preferred source on Google