Cavs Learn Price of Peyton Watson Trade in New Report and Who He Could Replace

Peyton Watson is being aggressively targeted by the Cleveland Cavaliers. Here's how they can acquire him.

Mar 25, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) reacts after a play in the fourth quarter against the Dallas Mavericks at Ball Arena. Mandatory Credit: Isaiah J. Downing-Imagn Images | IMAGN IMAGES via Reuters Connect

The Cleveland Cavaliers are actively pursuing two-way player Peyton Watson and have learned what acquiring him could cost.

The Cavaliers are in need of a new starting small forward after losing Dean Wade to the Philadelphia 76ers. Right now, Mario Hezonja will slot into the role, but Watson would be a stronger candidate to fill it instead, joining a projected starting lineup that includes Donovan Mitchell, Evan Mobley, Jarrett Allen and potentially James Harden. Since entering the NBA in 2022, Watson has averaged 8.7 points, 3.5 rebounds, and 1.3 assists per game over his career.

However, Denver seems hopeful that they can keep Watson, despite being above the second apron in luxury tax. The Nuggets signed shooting guard Lonnie Walker IV on Wednesday, which increases their tax bill to $84 million. This will further increase if they manage to sign Watson to a new deal. However, the restricted free agent is in talks with several teams, with Cleveland being a strong target.

“The biggest question for the Nuggets right now surrounds restricted free agent Peyton Watson. This is still an outstanding issue that the Nuggets have right now, and I'm told they are in active trade talks with multiple teams on a Payton Watson sign-and-trade,” ESPN NBA insider Shams Charania said on NBA Today.

“That includes Cleveland, Milwaukee, and the Clippers; there are combinations of player packages and pick packages as well, so either they're going to trade them, or you could potentially have them back on a one-year $6.5 million qualifying offer.”

Shams on Peyton Watson:

"They are in active trade talks with multiple teams on a Peyton Watson sign and trade. That includes Cleveland, Milwaukee, and the Clippers. There are combinations of player packages, pick packages as well. So either they're gonna trade him, or you could… pic.twitter.com/It0iLgdfpO

— Oh No He Didn't (@ohnohedidnt24) August 6, 2026

A sign for Max Strus to move on?

After signing with the Cavs in 2023, Max Strus carries an average annual salary of around $15.5 million, which would shed more off of Cleveland’s books. Denver would also reportedly get a 2030 first-round swap.

Strus would give Denver an experienced wing who provides deadly outside shooting and floor spacing, which would help their superstar alongside Nikola Jokic.

The veteran has also been a pivotal part of playoff teams, bringing his experience and the ability to make an impact without needing a high usage rate.

The inclusion of a 2030 first-round pick swap would add another future asset to Denver's draft capital while allowing Cleveland to avoid parting with an unprotected first-round selection.

The Cavs would get a younger, defensively versatile option on the wing, a position that has plagued them for years. Watson’s overall length, athleticism, and ability to defend multiple positions could strengthen Cleveland's perimeter defense.

Ultimately, the trade would see Denver prioritize proven shooting and playoff experience in exchange for Watson's long-term potential, while Cleveland would sacrifice some immediate floor spacing to acquire a young two-way player capable of developing alongside the team’s core.