Nuggets Executive Stays Optimistic About Peyton Watson's Free Agency

The Denver Nuggets' roster for the 2026-27 season will remain incomplete until they figure out what to do with Peyton Watson, who still sits on the market as a restricted free agent. The 23-year-old wing is coming off a breakout season, but in doing so, he drastically increased his price tag as a free agent.

It is no secret that the Nuggets are trying to bring him back, but at what cost? In an interview with Spotrac's Keith Smith, an anonymous Nuggets front office executive assured that the franchise wants to bring back Watson.

"We want Peyton to stay with us. He’s an important player for us. We’ll see where things go with his contract, but we’ve made it clear our intention is for him to stay with us," the Nuggets executive said.

Mar 22, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) reacts in the first quarter against the Portland Trail Blazers at Ball Arena. | IMAGN IMAGES via Reuters Connect

While the Nuggets clearly want to retain their free agent wing, the executive mentions how they will have to see "where things go with his contract." The expectation has been that Watson is asking for around $25 million per year on his next contract, while the Nuggets might not be offering any more than around $18 million per year, with a reported offer even lower.

If true, the two sides are still far apart on a new deal, meaning this situation could drag on until either side budges or Denver finds a sign-and-trade to send him to a new team.

Why Nuggets want Watson back

Sure, the Nuggets could potentially get value in return for Watson in a sign-and-trade, but they should be doing what they can to retain him. Last season, he averaged 14.8 points, 4.9 rebounds, 2.1 assists, and 2.0 stocks per game, while shooting 49.1% from the field and 41.1% from beyond the arc. At 6-foot-8 with high-level athleticism, he is extremely versatile on both sides of the ball and brings value everywhere on the court.

Peyton Watson self-creation leap pic.twitter.com/6oKZwf5eIr
— Brett Usher (@UsherNBA) January 23, 2026

With the Nuggets having an underwhelming offseason, they could certainly use Watson on next season's roster, and hopefully they can keep him for several years to come. His defensive impact alone makes him a must-keep for Denver, but the leap he took offensively last season showcased what he might be capable of as a two-way talent down the line.

As long as the Nuggets are willing to increase their contract offer, they will have no trouble re-signing Watson. Of course, they have to keep the luxury tax in mind, as they are set to pay a historic bill if they re-sign Watson with no other moves, but they can retain him at any cost if they are willing to pay the penalty.

It is no surprise that the Nuggets want to keep Watson, especially on a long-term deal, but time will tell what actually happens with his free agency. Their tricky financial situation is certainly giving them a tough decision, but in theory, the Nuggets bringing back Watson should be a no-brainer.

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