Clippers Competing With Two Teams in "Active Trade Talks" for Peyton Watson

The Los Angeles Clippers' pursuit of Peyton Watson is continuing six weeks into free agency. The Nuggets' restricted free agent is still unsigned, but the chances of his return to Denver are dwindling by the day.

On Wednesday, the Nuggets signed veteran shooting guard Lonnie Walker, increasing their tax bill all the way to $84 million. This will significantly increase once they sign Watson to a new deal. They are above the second apron, and the Nuggets' ownership has so far been unwilling to pay such a massive tax bill.

It's difficult to imagine the Nuggets being able to bring Watson back on a deal that the 23-year-old forward would be happy with. There is a chance he would accept his one-year, $6.5 million qualifying offer, but even then, the Nuggets will have to make moves to shed salary. What is becoming a more likely scenario is a sign-and-trade.

Clippers May Have to Beat Out Two Trade Offers for Peyton Watson

This is where the Clippers come in. ESPN's Shams Charania reported yesterday that the Nuggets are engaged in "active trade talks" with the Clippers, as well as the Bucks and the Cavs.

Whether the Clippers will be able to win the Peyton Watson sweepstakes will depend on their contract offer not only to Watson, but also on their trade package for the Nuggets.

Denver is reportedly offering a five-year, $70 million deal to Watson. The Clippers could and should be able to beat that offer. Assuming that a multi-year contract worth between $15 and $20 million will be enough to convince Watson to sign with the Clippers, they will then have to beat Cleveland and Milwaukee's trade offers.

The Clippers can fit Watson into the $17 million trade exception without sending a player back to Denver. They could give an unprotected first-round pick back to Denver. Since they wouldn't be taking back any salary, the Nuggets could be more interested in this type of construction.

Cleveland would have to include a salary in their trade offer to Denver. Max Strus or Dennis Schröder could be used to match salaries. The Nuggets may want Strus, but this doesn't solve their financial issues. They would have to make ensuing moves or involve a third team.

The Bucks have the assets and the resources to make a very competitive offer. They have the non-taxpayer mid-level exception, starting at $15 million, or a $25.4 million trade exception from the Giannis Antetokounmpo trade. They could use either of them to fit Watson in without having to match salaries.

The problem is, they just started their rebuild. It's difficult to imagine that they would want to give up more future draft capital, especially since they don't even have control of their own pick in 2027 and 2029. So, they would much rather send back players in terms of assets. Perhaps the Nuggets could have some interest in one or two of AJ Green, Jaime Jaquez, Kasparas Jakucionis, or Kel'el Ware as the return.

The cleanest path to a Watson trade may be the Clippers'. They may have to give up more than they would ideally like because of other suitors, but this is the type of big swing for a high-upside young player that they need to be making.

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