Evaluating the Most Underrated Aspect of the Nuggets' Peyton Watson Trade

The Denver Nuggets have a new valuable trade asset from their Peyton Watson trade.

Jan 9, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) reacts during a timeout in the first quarter against the Atlanta Hawks at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | IMAGN IMAGES via Reuters Connect

The biggest move of the Denver Nuggets' 2026 offseason has been their trade to ship Peyton Watson to the Cleveland Cavaliers. While that move has been highly criticized, their return for the 23-year-old breakout wing has become a bit underrated.

Granted, fans were expecting the Nuggets to either re-sign Watson or get a viable player in return in any trade. By receiving draft capital, some fans were left disappointed, but we should certainly be taking note of the pick they received in this deal. In exchange for Watson, the Nuggets acquired an unprotected 2031 first-round pick from the Cavaliers and a 2032 second-round pick, originally owned by the Sacramento Kings.

According to Bennett Durando of The Denver Post, the Nuggets are feeling very confident about the 2031 first-rounder from Cleveland.

"And the Nuggets hadn’t received a player back in the trade, controversially eroding their roster depth ahead of a pivotal 2026-27 season. After feeling out the market, they viewed Cleveland’s first-round pick as a more valuable asset than any player available to them, team sources told The Denver Post," Durando reported. "It’s intended as a trade piece to be cashed in well before 2031. Patience for the sake of future aggression."

Jan 2, 2026; Cleveland, Ohio, USA; Denver Nuggets guard Peyton Watson (8) looks to drive on Cleveland Cavaliers center Jarrett Allen (31) during the first half at Rocket Arena. Mandatory Credit: David Dermer-Imagn Images | IMAGN IMAGES via Reuters Connect

Durando reported that the Nuggets had interest in acquiring a player in a Watson trade, with L.A. Clippers guard Kris Dunn and Milwaukee Bucks forward Jaime Jaquez Jr. named as two of their top targets. However, their financial limitations would've made it difficult to take back any salary.

"If Watson were to be traded, it was becoming increasingly clear that an entirely pick-based return was both the most feasible path forward and the Nuggets’ preferred outcome, rather than a player who would likely slot into the back end of their rotation," Durando wrote.

Given the situation, this 2031 first-round pick from the Cavaliers could be extremely valuable for the Nuggets.

This trade made sense for the Nuggets

Before this move, the Nuggets had zero tradeable first-round picks. This makes it very difficult to dump salary or improve the roster, but they now have a bit more flexibility. By acquiring this pick from the Cavaliers, they can now either use it in trades or use their own 2031 first-rounder, which they could not previously do because of the Stepien Rule.

BREAKING: Cleveland, Denver and the Clippers have agreed on a trade sending Peyton Watson to the Cavaliers, Max Strus to LA, and an unprotected 2031 Cavs first-round pick and a 2032 Kings second-rounder to the Nuggets, sources tell ESPN.

Watson will sign a new four-year, $88… pic.twitter.com/hXqL3JvsU4

— Shams Charania (@ShamsCharania) August 19, 2026

As Durando mentioned, the Nuggets are not expected to keep this pick until 2031. They finally have a tradeable first-round pick, and they fully intend to use it. Really, acquiring this pick from Cleveland became Denver's best option in the Watson trade talks.

"In the end, [the Cavaliers] were also the only team to offer Denver an unprotected first-round pick — a coveted asset with high-lottery potential, if Cleveland’s championship window is closed five years from now," the Nuggets insider wrote. "After feeling out the market, the Nuggets decided they preferred Johnson’s expiring salary, Spencer Jones’ cheaper extension, and an unprotected first-rounder rather than what they would have had to sacrifice for a long-term relationship with Watson."

Not to mention, the Nuggets followed up this trade by signing veteran wing DeMar DeRozan. Do DeRozan and a future first-round pick completely make up for the loss of Watson? No, but it certainly gives the Nuggets more flexibility moving forward. In hindsight, this was the right move for the Nuggets to make, even though it was a bit underwhelming.

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