Nuggets Are Way Off With Reported Contract Offer for Peyton Watson

There is plenty of news around the NBA, like legendary point guard Russell Westbrook announcing his retirement, but his former team, the Denver Nuggets, is staying awfully quiet. The Nuggets have been stuck in limbo with restricted free agent Peyton Watson, and there is no resolution in sight.

There have been some talks about the Nuggets potentially finding a sign-and-trade for Watson, especially as their contract negotiations continue to drag on. With the Nuggets' reported contract offer for Watson, it is no wonder the two sides still stand far apart on an agreement. The Athletic's Sam Amick reports that the Nuggets' current offer for Watson is a four-year, $70 million deal with a team option.

"Maybe the Denver Nuggets’ restricted free-agent wing eventually gets the money and role he’s seeking by way of sign-and-trade, with the Cleveland Cavaliers, Milwaukee Bucks and LA Clippers all remaining in the hunt for the 23-year-old. It’s possible he strikes a deal with the Nuggets, whose present offer — four years, $70 million, with a team option in the fourth season, per a league source — falls well short of where he sees his worth," Amick wrote.

Mar 25, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) reacts after a play in the fourth quarter against the Dallas Mavericks at Ball Arena. | IMAGN IMAGES via Reuters Connect

Watson, 23, is coming off a breakout season in Denver, stepping up big time while most of the Nuggets' players were down with injuries. In 40 starts, he averaged 17.3 points, 5.3 rebounds, 2.2 assists, and 2.2 stocks per game, while shooting 49.9% from the field and 43.0% from beyond the arc.

As a versatile 6-foot-8 wing who provides value on both sides of the ball, there is no doubt that the Nuggets want him back, but this reported contract offer simply will not do it.

The Nuggets are way off

The expectation has been that Watson is seeking a contract much closer to what Christian Braun signed last year, a five-year, $125 million deal. That $25 million AAV has seemingly become a benchmark for Watson in contract negotiations, but Denver is nowhere close.

The Nuggets' reported offer of $70 million for four years is just $17.5 million per year, and the fourth-year team option makes it even less enticing for the free agent wing. Watson and his representatives, Rich Paul of Klutch Sports, might consider taking a deal that is at least in the $20-25 million ballpark, but the $17.5 million mark is a bit disrespectful.

Peyton Watson has one foot out the door with him and his camp feeling disrespected by the Nuggets, per @BrettSiegelNBA

Denver has only offered Watson a new deal that is slightly better than the mid-level exception pic.twitter.com/SvCC0cUlFB
— Fullcourtpass (@Fullcourtpass) August 7, 2026

If the Nuggets do not budge on this low offer, then Watson will ultimately come down to three main choices: give in to the underwhelming offer, sign the $6.5 million qualifying offer, or stand pat until the Nuggets can agree to a sign-and-trade.

It certainly would not be surprising if this entire situation damages Watson's relationship with the franchise, as the 23-year-old wing might already have one foot out the door, hoping for a sign-and-trade to find a new team.

With such a disparity in contract negotiations, this situation will likely drag on much longer unless the Nuggets pull the trigger on a sign-and-trade sooner than expected.

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