Nuggets Cannot Make a Mistake With Peyton Watson's Free Agency

The Denver Nuggets have a handful of big decisions to make this offseason, headlined by Nikola Jokic's potentially historic contract extension. One move in free agency, however, could change the trajectory of next season's team and beyond.

23-year-old wing Peyton Watson is coming off a breakout season, but after not agreeing to a contract extension last offseason, the Nuggets might have to pay this summer. Watson is entering restricted free agency, meaning Denver will have the option to match any offer he receives on the market. While they might be hesitant to cough up some money, they cannot make the mistake of letting him walk.

Fortunately, Nuggets executives Ben Tenzer and Jon Wallace are committed to doing what they can to bring Watson back.

Nuggets will try to retain Watson

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. | Isaiah J. Downing-Imagn Images

During the Nuggets' end-of-season press conference, Tenzer admitted they want Watson to be in Denver for a "very long time."

"Peyton [Watson] had a great year. He obviously grew a lot. I said it at the beginning of the season: We hope Peyton is a Nugget for a very long time. He’s been great for us," Tenzer said (h/t The Denver Post's Bennett Durando).

Wallace shared the same sentiment, saying the Nuggets need to retain their home-grown talent when possible.

"What he showed us is what we knew he could do. So he did his part. So like Ben said, we hope he's a Nugget for a long time. You’ve gotta continue to hit on these home-grown talents, and he’s been the focal point of that," Wallace said.

"We hope Peyton's a Nugget for a very long time."

- Ben Tenzer on Peyton Watson pic.twitter.com/7FPq46lfNe
— DNVR Nuggets (@DNVR_Nuggets) May 8, 2026

While there is no telling how much teams will be offering Watson in free agency, his next contract is expected to be in the range of $18-25 million annually. There is some speculation that the Nuggets will decide to trade Cam Johnson if they want to bring back Watson while still cutting costs.

Why Nuggets need to bring back Watson

Sure, it might be a pricey move for this Nuggets organization that is already in a financial pickle, but it would be a shame to let the 23-year-old walk. The Nuggets do not have much young talent to build around for the future. Of course, they are looking to capitalize on Jokic's prime, but having a piece like Watson for the next decade is something to look forward to.

This season, Watson averaged 14.6 points, 4.9 rebounds, and 2.1 assists per game, while shooting 49.1% from the field and 41.1% from three-point range. Watson really showed what he could do when the Nuggets were plagued by injuries in January, even winning an NBA Player of the Week award.

PEYTON WATSON MY GOODNESS 😳

One-handed poster slam with authority!

Tap to watch: https://t.co/4fb2NGXot6 pic.twitter.com/W3bOQp0W47
— NBA (@NBA) February 2, 2026

In January, he elevated his game by averaging 21.9 points, 5.5 rebounds, 3.0 assists, and 2.5 stocks per game, shooting a blistering 46.2% from beyond the arc. Sure, Watson does do as much damage on offense when sharing the floor with his star teammates, but his defensive impact is just as impressive.

As a young, lengthy two-way talent, it is obvious why the Nuggets cannot afford to let him walk. Denver desperately needs defensive versatility, and while Watson alone does not solve their problems on that end, keeping him on the roster and expanding his role will help much more than many fans realize.

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