Nuggets Have One Team Emerging as Threat to Sign Peyton Watson

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The Denver Nuggets' biggest priority heading into this year's free agency has consistently been pegged as re-signing their key restricted free agent Peyton Watson.
And to this point, that still seems to be the most likely outcome for both Watson and the Nuggets.
However, it seems like there's at least one other suitor looming in the background as a potential team that'll have Peyton Watson on their radar once the free agent market opens.
That's none other than the Los Angeles Clippers.
Clippers Might Have Peyton Watson on Their Radar
According to NBA insider Marc Stein on The Stein Line, Peyton Watson has been circled as a "likely Clippers target," according to sources, which might be something to keep an eye on as free agency gets underway this week.
The idea of Watson being someone that the Clippers could have their eye on tends to make a bit more sense when factoring in the recent Kawhi Leonard trade rumors that have lingered around them and their offseason plans for the past several days––with teams like the San Antonio Spurs and Toronto Raptors appearing as potential destinations.
In the event that Leonard is traded, then that could leave the Clippers in the market to pursue a two-way wing of Watson's caliber on the free agent market; someone who could fill their positional needs, younger timeline, and help fill a bit of the defensive void that Leonard would then leave behind.

Los Angeles may also then have cap space freed up by shedding Leonard's $50 million expiring contract, along with their existing maximum cap space of $34 million. So the Clippers might end up as more of a serious threat than what people realize, depending on how they approach the next few days.
Nuggets Still In the Lead to Sign Watson–– Here's Why
The outside threat of the Clippers could still be a real one to keep an eye on. But that doesn't mean that they're frontrunners in the race to have him on their roster come opening night. Far from it, actually.
The Nuggets, while potentially a bit cap-constrained by the luxury tax as well as the first and second aprons, have Watson's restricted free agent rights that allow them to match any and all offer sheets that come through on him.
Denver clearly values what Watson brings to the table, having been in rumors of not only matching any offer sheet that comes their way for their two-way wing, but also having their own offer potentially creeping around $30 million AAV that might make it hard for any other opposing team to top that number anyways.
The Nuggets are expected to offer Peyton Watson ‘somewhere north of $28-30 million per year’ to try and keep him in Denver
— Hoops Alerts (@TheHoopsAlerts) June 25, 2026
“It’s gonna be a big contract for Peyton Watson, but in order to do so they’re gonna have to free some cap room. So it will be Christian Braun, it will be… pic.twitter.com/igmGhhC6iw
If the Nuggets don't end up with Watson on their roster with a new deal, it'll be because of another team offering him an insane amount of money that Denver doesn't intend to match. Without many other suitors having the free money on hand to do so, and the lack of extensive interest in his services outside of maybe the Clippers, that seems a bit unlikely to see transpire.
So while the Clippers might be intrigued about the idea of adding Watson to their roster, a lot would have to fall in their favor for the Nuggets not to be the ones ending up with him in the end.
Of course, keep all options and possibilities open in what expects to be an unpredictable offseason for the Nuggets, but don't get let your mind wander too much about the idea of Watson taking his talents to LA.

Jared Koch is a sportswriter and editor covering the NFL and NBA for the On SI network since 2023.