Draymond Green Speaks on Nuggets' Peyton Watson Contract Dilemma

The Denver Nuggets head into this offseason with some potentially big questions in store when it comes to the future of Peyton Watson with the roster, who's slated to hit restricted free agency after putting together one of his best NBA seasons thus far as an impactful, explosive player on both ends of the floor.

With that high level of production, though, also comes a high price for the Nuggets to pay once and for all for that next contract. And with big money on the books as is with expensive contracts dealt to Nikola Jokic, Jamal Murray, and others, it's easy to see how Denver could be tight in terms of funds once it's time to hit the negotiation table.

Golden State Warriors star Draymond Green recently commented on Watson's contract outlook with the Nuggets during a new episode of The Draymond Green Show, noting that due to the level he's played at all season long, it's created a "real situation" for both sides heading into this summer.

"Averaging 21.9 points in January, 18.7 points in February. Joker went down with an injury and he stepped his game up. Him and Jamal Murray kept Denver right where they need to be in the running until Joker got back," Green said of Watson.

"He has put Denver in a real situation as his contract comes up this year. Will be one of the most touted free agents, and is due because he came out of nowhere."

🎖️🏆🏅 Draymond is BACK, handing out his January Awards... And the "Out Of Nowhere" Award goes to... pic.twitter.com/HLHrPrLJts
— The Draymond Green Show (@DraymondShow) February 21, 2026

Green's two cents came within the process of crowning Watson with the "Out of Nowhere Award" for the month of January, where the Nuggets wing had carried the load throughout the weeks that Jokic was injured and out of the lineup, and was a key part in helping the team rally to a pretty positive record throughout.

But with that slate of games coming in a contract year, it begs the question for Denver: will they truly have the flexibility to sign Watson long-term?

Are Nuggets In Danger of Losing Peyton Watson?

Jan 22, 2026; Washington, District of Columbia, USA; Denver Nuggets guard Peyton Watson (8) attempts a dunk over Washington Wizards guard Tre Johnson (12) during the second half at Capital One Arena. Mandatory Credit: Daniel Kucin Jr.-Imagn Images | Daniel Kucin Jr.-Imagn Images

The glaring issue for the Nuggets' means to sign Watson relies on the money already allocated to the roster for the 2026-27 season. With two players in Jokic and Murray signed to at least a $50 million deal and Cam Johnson, Christian Braun, and Aaron Gordon all signed on for at least $20 million, those four alone eat up $184 million total for next season.

For Denver to add Watson into that mix, albeit with the rights to do so with restricted free agent status, his estimated value on a pricey, multi-year deal would make it nearly impossible for the Nuggets to not only avoid the luxury tax but avoid any apron penalties via the CBA as well.

That, of course, also doesn't factor in any other additions to be made for the necessary depth of a 15-man roster, or a strong nine- or ten-man rotation. Simply put, it's a tough equation to solve of trying to keep all of this year's team plus Watson onboard for another season, as Green alluded to.

So how can the Nuggets jump that hurdle? It may result in tough conversations to be had concerning some cost cuts around the edges to free up that money.

Maybe Cam Johnson's $23 million expiring deal becomes expendable. Christian Braun could be a trade piece with his $21 million, and/or a few depth pieces could be shed in the process. In that case, flexibility is freed up. Denver can reach an agreement or match another offer sheet on Watson, and keep him as a core piece moving forward.

Retaining Watson for another season certainly isn't impossible for the Nuggets to pull off, but it’ll take a little extra effort to make it happen from how things were projected to transpire just a few months ago.