Nuggets Could Make Big Offseason Trade to Keep Peyton Watson

The ascension of Peyton Watson into "rising star" status has been incredible for the Denver Nuggets this season, as the 23-year-old wing has turned heads across the league. However, his immense development could ultimately harm his future as a Nugget.

Watson is set to hit restricted free agency this offseason, and for a Nuggets team already right below the luxury tax line (thanks to the Hunter Tyson trade), it is uncertain if they would be willing to go into the aprons to bring back Watson this summer. However, there is one way they can bring back Watson and dodge any financial penalties.

The Denver Post's Bennett Durando recently brought up the idea of the Nuggets trading either Cam Johnson or Christian Braun this offseason to make more room for Watson's potential contract.

"It’s clear that someone significant needs to go in the offseason. Cam Johnson seems like the obvious choice, though he would bring the least back. Still, the cap relief is more important, if it allows the team to retain Watson. Is it possible that Braun could be dealt? I know he’s a management favorite, but his regression to start the year was alarming, and he seems to still always be in his head in terms of shooting confidence," Durando wrote.

Will the Nuggets make a trade to make room for Watson?

Feb 1, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) controls the ball in the third quarter against the Oklahoma City Thunder at Ball Arena. | Isaiah J. Downing-Imagn Images

Before the season started, the Nuggets opted not to hand Watson a contract extension. In hindsight, it was a bad decision because his pricetag in this summer's free agency will be much higher than it was last offseason.

Realistically, Watson should be in conversations for the Most Improved Player of the Year award. This season, he has averaged 14.9 points, 4.9 rebounds, 2.0 assists, 1.0 steals, and 1.2 blocks per game, while shooting 49.6% from the field and 41.7% from beyond the arc. Sure, he is sidelined for the coming weeks with a hamstring strain, but we should not let that overshadow what he did in the month leading up to his injury.

Watson has been better than Christian Braun this season, likely making the franchise regret the five-year, $125 million extension they handed him last summer instead of paying Watson. Still, though, the Nuggets have the chance to keep everyone.

"I’ll start by saying this: Nobody needs to go," Durando clarified. "The Nuggets possess both Watson’s full Bird rights and the right to match any offer sheet he receives as a restricted free agent. In theory, they could sign him to an extension without needing to sacrifice another starter if the Kroenkes are willing to incur the roster-building and tax penalties of the second apron."

Peyton Watson this season:

14.9 PPG (career-high)
4.9 RPG (career-high)
1.2 BPG
1.5 3PM (career-high)
41.7 3P%

The only player in the West with 50+ STL, 50+ BLK and 50+ 3P. pic.twitter.com/0IruWDXybE
— StatMuse (@statmuse) February 6, 2026

The idea of trading away Johnson, who the Nuggets acquired in exchange for Michael Porter Jr. last offseason, is intriguing. Johnson has been better this season than many fans are giving him credit for, but if it came down to keeping him or Watson, the franchise would likely prefer the latter.

The 2026-27 season is the last year of Johnson's contract, worth $23 million. If the Nuggets decide to trade Johnson and re-sign Watson to a long-term deal, they would have their core group of Watson, Jamal Murray, Nikola Jokic, Aaron Gordon, and Braun locked up through at least the 2027-28 season, and likely longer.

The Nuggets have a big decision to make this offseason, but doing whatever they can to keep Watson is likely at the top of their priority list, and some sacrifices will have to be made to do so.