Nuggets' Top Three Trade Candidates If They Re-Sign Peyton Watson

The Denver Nuggets are stuck in a tough spot this offseason, and while it seems inescapable, there are some ways out of it. After re-signing Spencer Jones to a two-year, $12 million deal, the Nuggets jumped into the second apron, and with restricted free agent Peyton Watson yet to make a decision, their situation could get even worse.

"If they keep Watson, they're either going to be a second apron team, or they're going to have to make another very unpopular move to shed salary," NBA insider Marc Stein told the DNVR Nuggets Podcast.

The Nuggets' franchise has never been one to spend more money than they need to, so as they watch their luxury tax bill pile up and face the roster-building consequences of being a second-apron team, it is hard to imagine the front office staying put if they re-sign Watson. Here are Denver's three most likely trade candidates to shed salary if they bring back Watson:

3. Zeke Nnaji

Mar 1, 2026; Denver, Colorado, USA; Denver Nuggets forward Zeke Nnaji (22) before the game against the Minnesota Timberwolves at Ball Arena. | IMAGN IMAGES via Reuters Connect

In his conversation with the DNVR Nuggets Podcast, Stein mentioned how the Nuggets' preferred situation would be to trade Zeke Nnaji, but that scenario is much easier said than done.

"Their preferred scenario would be finding a trade home for Zeke Nnaji, but you know if you do that you’re attaching draft capital and the Nuggets are not exactly teeming with extra draft capital," Stein said.

Nnaji has two years left on his deal (second-year player option) worth nearly $15 million. The Nuggets have been trying to get off his contract since the day they handed him a four-year, $32 million extension, but obviously, they have had no luck. If the Nuggets had a bundle of draft picks to use, they could attach one to get off his salary, but they are in no position to do that right now.

This is obviously the Nuggets' preferred scenario, but one, it is virtually impossible to trade Nnaji without attaching extra assets or taking on extra salary, and two, this move alone would not get Denver below the second apron, assuming they re-sign Watson at a fair price.

2. Aaron Gordon

Apr 4, 2026; Denver, Colorado, USA; Denver Nuggets forward Aaron Gordon (32) reacts to his three point score in the second half against the San Antonio Spurs at Ball Arena. | IMAGN IMAGES via Reuters Connect

As heartbreaking as it might be, there is a scenario where the Nuggets part with Aaron "Mr. Nugget" Gordon before February's trade deadline. Gordon is not only one of the Nuggets' most valuable players, behind Nikola Jokic and Jamal Murray, but offloading his contract would be a huge help to Denver's situation.

Gordon's three-year, $103.6 million contract extension kicks in this season, but the only problem is that trading him is not as simple as just getting rid of his contract. The Nuggets would have to take salary back in a trade for Gordon, and depending on how rival teams view him after an injury-plagued 2025-26 campaign, it might not be worth trading him.

Still, if the Nuggets bring back Watson and sit with a historic luxury tax bill and miles into the second apron, trading Gordon is a move they would have to consider. This certainly is not a likely scenario, but it is one Nuggets fans might have to brace themselves for, just in case.

1. Cameron Johnson

Mar 24, 2026; Phoenix, Arizona, USA; Denver Nuggets forward Cameron Johnson (23) against the Phoenix Suns at Mortgage Matchup Center. | IMAGN IMAGES via Reuters Connect

The most glaring trade candidate in Denver all offseason has been Cameron Johnson, and while he has been safe thus far, there is still time for a deal. Johnson is on an expiring contract worth about $23 million, making him an obvious trade target across the league.

However, rival teams know the financial situation the Nuggets are in, so they have not shown as much desperation to trade him as they might feel, even reportedly turning away trade talks about the 30-year-old sharpshooter.

Trading away Johnson is the easiest solution to the Nuggets' problem, and likely the scenario that hurts the team's title chances the least. Sure, they would love to keep him, especially for his floor-spacing ability, but if they want to re-sign Watson and save money, it would not be shocking if he was on a different team by February.

Of course, keep in mind that the Nuggets have until the trade deadline to get below the second apron and cut down their luxury tax bill. Even if they re-sign Watson, there will not be a rush to make this consequential trade, although it will feel like a ticking time bomb until the franchise makes a big move.

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