Lakers Keep Being Linked to Nuggets' Peyton Watson

The Los Angeles Lakers have once again been linked with interest in Denver Nuggets wing Peyton Watson ahead of his restricted free agency looming later this offseason.

The latest buzz regarding Watson and the Lakers comes from ESPN's Dave McMenamin, as he notes in a recent report that the team has privately discussed Watson, along with Houston Rockets forward Tari Eason as restricted free agent targets, with the Nuggets' wing in particular circled as the name to watch.

"The Lakers have also privately discussed restricted free agents Tari Eason and Peyton Watson, sources told ESPN, and could land the latter if Denver, which already has $215 million in salary committed to returning players for next season, doesn't match the offer sheet."

Watson is on the last year of his rookie contract signed following his selection at 30th overall in the 2022 NBA Draft worth $4.3 million, and in his fourth season with Denver, has lit up for some of the best production of his career amid the team's injury woes, and has now cemented himself a bit of extra money on his next contract that lies ahead for this summer.

But with that inevitable pay raise looming for Watson, teams around the league hungry for a 3&D wing, like the Lakers, are now taking clear interest in pursuing him on a big deal, despite his restricted free agent status limiting their ability to acquire him, simply due to the Nuggets' cap situation.

Should Nuggets Fans Worry About Losing Peyton Watson?

The production Watson has put together all season has made it a given that the Nuggets would like him back on the roster next season, even if it may come with some high numbers on his contract.

Especially in his slate of games from the 2026 calendar year, Watson has turned a corner on the offensive end, averaging 21.4 points, 5.3 rebounds, 2.9 blocks, and over a steal and a block per night to make him an indispensable part of the Nuggets rotation, and someone that the franchise will be motivated to keep around for the long haul.

Dec 31, 2025; Toronto, Ontario, CAN; Denver Nuggets guard Jamal Murray (27) stands beside guard Peyton Watson (8) during the second half against the Toronto Raptors at Scotiabank Arena. Mandatory Credit: Kevin Sousa-Imagn Images | Kevin Sousa-Imagn Images

The problem for his long-term fit and a new contract for this summer comes in when looking at who and how much the Nuggets are already paying on the books for next season.

Nikola Jokic is due nearly $60 million, Jamal Murray's contract officially surpassed $50 million, Aaron Gordon will make upwards of $30 million, while Christian Braun and Cam Johnson will also be making over $20 million a piece on their deals.

To pay Watson, fill out the rest of the roster, and pay each of those previous deals while avoiding any luxury tax penalties will be borderline impossible to pull off. And for a Nuggets franchise that's historically a non-tax-paying team, they'll likely want to keep their total bill as low as they can, while still supporting a championship-quality roster.

That makes retaining Watson, and the rest of their big-money guys, unlikely to be feasible. But still, there's definitely ways for the Nuggets to shed some cash off the books before free agency hits that make re-signing their budding two-way star a whole lot easier than it appears right now.

How Can Denver Re-Sign Peyton Watson?

It takes some cap finagling, but if done right, the Nuggets can create more than enough flexibility to match any lucrative deal that comes Watson's way.

Cam Johnson's on a $23 million expiring deal that the Nuggets can shed in a trade to free up a good chunk of space, and might be the most likely candidate on his way out if Denver keeps Watson. Christian Braun would also be a worthy trade candidate, but with a restriction barring any deal until July 1st, shipping him out becomes a little more difficult.

However, combined with either of those moves, trading Julian Strawther and Zeke Nnaji could save Denver upwards of $10 million on the books. Jonas Valanciunas, while a great asset behind Jokic, is on a non-guaranteed deal of $10 million, and the team could cut ties with him without any penalty if they're really tight on cash.

Dec 18, 2025; Denver, Colorado, USA; Denver Nuggets center Jonas Valanciunas (17) reacts following a foul called on him during the second half against the Orlando Magic at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | Ron Chenoy-Imagn Images

That's over $40 million freed up if the Nuggets can find some luck on the trade market. In the event Denver dealt Johnson, Braun, and Nnaji––while drastic––that would save over $50 million in cap.

The Nuggets won't be able to keep the same depth, starting five, and Peyton Watson on the roster next season that they've housed this year. But Watson, the clear priority to retain of the bunch, has many routes to be retained by Denver to keep him in for the long haul, avoid paying the luxury tax, and thus, prevent a team like the Lakers from poaching him.

It's easier said than done, and will certainly be a situation to keep an eye on until officially hashed out in the summer. But for now, Nuggets fans shouldn't panic about losing their budding two-way wing just yet.