Nuggets' Peyton Watson Contract Might Not Be as Big as Expected

As the Denver Nuggets have gotten further into their 2026 offseason, and more importantly, closer to this year's free agency period, much talk has been made about Peyton Watson's upcoming contract negotiations, and how much he might be worth on his next deal.

Some projections have been around the $20 million a year mark. Others have crept even higher at around $25 million. As to which value might be closer to what Denver, or any other team, actually ends up paying, might not become clear until getting to free agency in July.

However, Bill Simmons of The Ringer seems to believe that Watson's next contract might not be as high as the consensus is making things out to be.

Could Peyton Watson's Contract Projections Be Overvalued?

During a recent episode of The Bill Simmons Podcast, Simmons broke down why Watson might not be getting the amount of money that many seem to believe he'll be in for.

For one, his health throughout last season raises a few questions. Yet, more importantly, teams now have to be smarter about how much they'll be paying mid-tier starters like Watson, considering the overarching CBA implications front offices have to be mindful of.

"I dont think Peyton Watson's getting as much money as everybody thinks," Simmons said. "I don't know where his $20 million a year is coming from. We saw the guy play, what, for like five weeks, six weeks, eight weeks?"

"I think that's the range of guys that everybody's scared of right now–– $17 to $22 million, where you're overpaying [for them]. Like, basically, exactly what happened to the Nuggets with Christian Braun, who I think was hurt last year."

It's an interesting situation for the Nuggets to be in later next month, to say the least.

Not only will Watson be a restricted free agent that makes things a little bit different than a typical unrestricted veteran on the market, but Denver also didn't quite get to see a full season out of their two-way wing who played well in the reps he was on the floor for.

Oct 25, 2025; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) defends against Phoenix Suns guard Collin Gillespie (12) during the first half at Ball Arena. Mandatory Credit: Christopher Hanewinckel-Imagn Images | Christopher Hanewinckel-Imagn Images

In the 54 games he was on the floor for, Watson made a considerable leap in his counting stats: 14.9 points, 4.9 rebounds, and 2.1 assists a night while remaining a key piece on the defensive side of the ball.

That type of athletic, versatile player on the wing is exactly what the Nuggets need more of entering this offseason.

At the same time, they have to be methodical about how much they're paying talents of his caliber. Watson's more than capable of being a positive impact starter, but might not be at the level of an All-Star wing just yet.

It was less than 12 months ago when the Nuggets decided to invest highly in another two-way wing on their roster, Christian Braun, with a $125 million extension over five years that now starts to look a little dicey before the deal has even officially kicked in.

Combining the Nuggets' cap crunch that they'll be facing by likely trying to avoid the second apron, along with a crash course of seeing what happens when you pay a less-than-All-Star wing a little bit too much on that second contract, it'll leave Denver extra careful with how much money they'll be willing to extend to Watson.

Time will tell just how much the Nuggets will be paying Watson on that second contract, if they do decide he's worth the investment. However, don't be surprised if the value of that deal ends up a bit lower than previously assumed.

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