Cam Johnson Addresses How Peyton Watson's Free Agency Impacts Nuggets

The Denver Nuggets are in restricted free agency limbo with Peyton Watson, as the 23-year-old breakout wing is still sitting on the market waiting for a big payday. With Watson hitting RFA, the Nuggets have been put in an interesting spot.

If the Nuggets pay him and retain their entire core, they will be stuck paying an astronomical luxury tax bill by soaring over the second apron. However, they obviously do not want to lose his two-way versatility. The entire second apron discussion has been a talking point in the NBA for the past few years, and it is now severely impacting the Nuggets.

On his The Old Man and The Three podcast, Nuggets forward Cam Johnson talked about how Watson's free agency is impacting Denver and his mindset on wanting his teammate to get paid.

"Let's just take the elephant in the room. Peyton Watson is in contract negotiations. The only reason that we're in this position in the first place is because he balled out. He played really well," Johnson said. "So you see that, and it's just like you want your guys to play well. You want your guys to make top dollar, and then you get to the end of the road, and it becomes very like, 'oh man, now everybody can't get paid crazy.' That's an obstacle."

The impact of the second apron

The second apron is coming down hard on the Nuggets, as they are already nearly at the projected $222 million line, without re-signing Watson or co-restricted free agent Spencer Jones. Even just running it back with the same team is a major gamble by Denver because of how much they would be soaring over the second apron.

"So what do you do? The second apron in that case is not beneficial to us. It hurts," Johnson said.

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Watson has been anticipated to earn a new contract worth around $25 million per year, which would be a significant pay increase for the four-year wing, but one many fans question he deserves.

Will the Nuggets pay Watson?

Of course, it is no surprise that the Nuggets want to keep Watson, but they should certainly be careful about overpaying him. As we saw with Christian Braun last year, the Nuggets gave him a five-year, $125 million contract extension. While there is hope that he will bounce back, he immediately declined, leaving the Nuggets to question their decision.

Mar 27, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) after making a basket during the second half against the Utah Jazz at Ball Arena. | IMAGN IMAGES via Reuters Connect

If the Nuggets give Watson a similar contract, they will be stuck in salary cap purgatory for the next handful of years. If Watson lives up to his potential, then sure, it would be worth it. However, the Nuggets should want to see more before they pay him that much money.

Watson showed a few flashes in his first three seasons and finally broke out in his fourth year. Still, though, he only played very well for a couple of months. Can the Nuggets give him $25 million per year based on a two-month span? They probably shouldn't, but it is hard to say they won't.

Initially, the Nuggets were expected to re-sign Watson, but in doing so, trade one of Johnson, Braun, or Aaron Gordon to clear enough cap space to still fit under the second apron. Now, though, that scenario is fading, and it is becoming increasingly more likely that the Nuggets will find a sign-and-trade for Watson, or they will re-sign him and pay a gigantic tax.

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