Cavaliers Emerge as Sneaky Threat to Sign Nuggets' Peyton Watson

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As the Denver Nuggets have been dragging their feet when it comes to finding terms on a new deal for restricted free agent Peyton Watson, several potential suitors have been emerging from the shadows as threats to sign him to a contract––or work out a sign-and-trade for him––themselves.
The Atlanta Hawks, Los Angeles Clippers, Los Angeles Lakers, Brooklyn Nets, and Milwaukee Bucks have all been linked to Watson in one way, shape, or form throughout the several weeks that the Nuggets have been at a standstill with Watson.
So far, none of them have been able to push the needle one way or another to pry away Denver's coveted two-way forward.
However, there's now another name to add to the mix of potential suitors who appear to be interested in bringing Watson aboard to their own roster; one who hasn't been mentioned much at all throughout his free agency process.
And surprisingly, it's none other than the Cleveland Cavaliers, which has only become possible due to the flexibility that's since been created as free agent guard James Harden patiently awaits his own contract.
Cavaliers Emerging as Threat in Peyton Watson Sweepstakes
According to ESPN's Ramona Shelburne, Harden has remained patient in his own negotiations to allow for the Cavaliers to have some wiggle room when it comes to a potential pursuit of Watson.
That new contract for Harden is bound to come in the next two to three weeks, but before the Cavaliers actually put pen to paper, it might not withhold Cleveland from testing the waters on the Nuggets' 23-year-old forward.
"I think that could happen relatively soon," Shelburne said of Harden's contract. "The question is going to be is it a two-year deal, a three-year deal? What the structure looks like is going to determine what the money looks like. But the Cavs are still poking around with Peyton Watson, and I think that's why James has given them a lot of room to negotiate."
“The Cavs are still poking around with Peyton Watson.”
— DNVR Nuggets (@DNVR_Nuggets) July 30, 2026
- @ramonashelburne pic.twitter.com/07ohazMGqA
It's worth noting that the Cavaliers, while they may have interest in Watson, can't sign him outright. With their current roster and salaries onboard––which includes over $100 million for Donovan Mitchell and Evan Mobley alone––they've already exceeded the NBA salary cap, and would therefore have to find an agreement on a sign-and-trade with Denver to bring him in.
And based on reports that have surfaced around the Nuggets and their Watson situation, they'd only be willing to part ways with their restricted free agent in a sign-and-trade if the package was one that was truly worthwhile, including draft capital and a solid, rotational player.
What the Cavaliers Could Offer in a Sign-and-Trade
The Cavaliers do have full possession of their first round picks from 2030 to 2033, which could interest the Nuggets in a potential deal, if Denver were truly interested in a sign-and-trade.
As to players on their roster that they could offer up, though, that could be a little tricker.
Jarrett Allen sticks out as an obvious trade candidate, but of course, the Nuggets have their center spot fully locked in thanks to Nikola Jokic. Cleveland also has bigger, tradeable salaries with veterans Max Strus and Dennis Schroder, both of which don't seem like true pieces that could interest Denver in a Watson deal.
Then there are also young players such as Jaylon Tyson, Tyrese Proctor, and Meleek Thomas who might actually be able to pique Denver's interest.
As to whether or not the Cavaliers would dangle them in a package isn't quite clear, but it's far from saying Cleveland doesn't have options to send over to the Nuggets.
So at the very least, add Cleveland to the list of teams that could take Watson away from the Nuggets, if they didn't want to give him the type of hefty salary he's looking for on his second contract. But expect Denver to command a high price from them to make that idea truly become a possibility.

Jared Koch is a sportswriter and editor covering the NFL and NBA for the On SI network since 2023.