How Potential Peyton Watson Signing Could Lead to Big Nuggets Trade

The Denver Nuggets still have a significant decision to make with Peyton Watson. The restricted free agent is searching for a big payday, and if the Nuggets are not willing to give it to him, then a sign-and-trade could be the best option.

Of course, the Nuggets want to re-sign Watson, but doing so would put them in a very tough financial position. By re-signing Watson, the Nuggets are projected to owe the largest luxury tax bill in NBA history, unless the franchise follows up the move by trading one of their larger contracts.

NBA insider Marc Stein joined the DNVR Nuggets podcast to talk about where the Nuggets stand in talks with Watson, saying that if they choose to bring him back, there will likely be a following trade to try to get back under the second apron.

"If they keep Watson, they're either going to be a second apron team, or they're going to have to make another very unpopular move to shed salary, unless there's a way to trade Zeke Nnaji somewhere and attach draft capital to him," Stein said.

The Nuggets already dipped into the second apron by re-signing Spencer Jones, so bringing back Watson as well would send them even deeper into an area that is hard to recover from. Of course, the Nuggets would love to trade Nnaji, but that move alone would not get them back under the second apron.

Who could be traded?

Unfortunately, re-signing Watson would limit Denver's options. If they want to get back under the second apron, three players would be worth monitoring on the trade market: Christian Braun, Cameron Johnson, and Aaron Gordon.

Braun is the least likely of the three, due to his giant five-year, $125 million contract that kicks in next season. A team could be willing to take him on, but it would be a silly move by Denver while his value is at an all-time low.

Johnson certainly seems like the most likely, as his name has been brought up the most in trade rumors this offseason. In fact, the expectation at the start of the offseason was that the Nuggets would re-sign Watson and trade Johnson, although neither has happened just yet.

Denver Nuggets forward Cameron Johnson and forward Aaron Gordon — Mar 22, 2026; Denver, Colorado, USA; Denver Nuggets forward Cameron Johnson (23) and forward Aaron Gordon (32) react the third quarter against the Portland Trail Blazers at Ball Arena. | IMAGN IMAGES via Reuters Connect

Gordon is the player the Nuggets would hate to part with, but it could ultimately be Denver's best move to get under the second apron. His three-year, $103.6 million contract kicks in next season, but he is a valuable enough player to warrant a solid trade return. Of course, though, he is the hardest player to replace of the three trade candidates.

For now, we should not expect a big Nuggets trade. The Nuggets will do all they can to re-sign Watson and ship out Nnaji in an effort to retain their core, but down the line, they might feel the need to make a drastic change. The Nuggets will have until the trade deadline to get under the second apron and cut down their luxury tax penalty, so we will likely see them re-sign Watson and keep this core together until February.

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