Nuggets' Predicted Contract for Peyton Watson Would Be a Steal

The Denver Nuggets should put pen to paper on this deal for Peyton Watson if given the opportunity.

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

Once this NBA offseason's free agency period arrives, the Denver Nuggets will be tasked with dishing out a big-time pay raise towards their restricted free agent, Peyton Watson; one of their biggest priorities of this summer entirely.

Watson comes fresh off a breakout year with the Nuggets when he was healthy and on the floor with career highs across the board: 14.6 points, 4.9 rebounds, and 2.1 assists with nearly a block and a steal per night on under 30 minutes played. Really impressive numbers.

Though with the fourth year of his rookie deal officially expired this summer, that means Denver will have to negotiate a new contract with Watson to ensure he's a long-term piece of the puzzle.

Based on how well he played when he was on the floor this past season, Watson's going to see a good amount of cash coming through on his next deal, whether that be with Denver or elsewhere. But exactly how much could Watson really be worth on that contract?

ESPN's Bobby Marks hashed out an initial prediction for Watson's next contract value upon hitting free agency this summer, ultimately landing on a $90 million deal over four years with the Nuggets, averaging out to $22.5 million a season.

"Four years, $90 million. Watson should be a priority for Denver, even if that means going into the second apron," Marks said. "A $22 million salary in the second year would allow the Nuggets to avoid the second apron once Cameron Johnson's salary comes off the cap in the 2027-28 season."

Peyton Watson Landing $22 Million Per Year?

That projected number could certainly change a bit between now and when Watson officially hits the market, and more importantly, when other teams around the league have an opportunity to send out an offer sheet of their own to test Denver's resolve to pay him big money.

However, if this does end up being the official deal that the Nuggets are able to come to terms with for Watson, there's no doubt that Denver walks away from those negotiations as big winners.

Not just because of having the ability to re-sign a two-way impact player like Watson, but due to the immense value that a $90 million deal would offer.

Nov 29, 2025; Phoenix, Arizona, USA; Denver Nuggets guard Peyton Watson (8) against the Phoenix Suns at the Mortgage Matchup Center. Mandatory Credit: Mark J. Rebilas-Imagn Images | Mark J. Rebilas-Imagn Images

When sorting through the top small forwards around the league and their salary values, a number like $22.5 million doesn't tend to be too outrageous for a player of Watson's caliber.

For the 2026-27 campaign, a $22.5 million deal is actually tied with Cameron Johnson in being the NBA's 17th-highest paid small forward according to Spotrac, right behind names like Sacramento Kings' De'Andre Hunter and New Orleans Pelicans' Trey Murphy.

Watson certainly belongs in that tier of players, if not a little bit higher. That's especially so when factoring in the potential progression and development he has in store moving forward by evolving into a bigger component on the offensive end at just 23 years old.

The deal tends to look even better when seeing the type of money the Nuggets just paid out to Christian Braun on his $125 million deal over five years before last season even started.

Denver being able to pay Watson less than Braun––while Watson has a real argument for being a better player after the way both players started and finished this past year––would be an impressive feat for the Nuggets front office if they get his representation onboard.

The Nuggets might not have their negotiations this simple. When factoring in the teams around the league with extensive cap space at their disposal and their potential to offer big money Watson's way, it only takes one team to offer a contract that's too steep for Denver to be willing to match, despite having his restricted rights.

But for $22.5 million a season over four years? That's a number the Nuggets should sign up for with no hesitation if they get the opportunity. And if his progression keeps trending in the right direction, such a deal might act as a bit of a life preserver for this Denver roster and their financials moving forward.

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