Nuggets Under Pressure From Bucks Amid Peyton Watson's Free Agency

The Denver Nuggets are still stuck at a standstill as it relates to their restricted free agent Peyton Watson.

Now around four weeks from the free agent market opening, there's been little to no traction on a deal cementing between the Nuggets and Watson due to a lack of alignment as to what his value might be worth on his second contract.

And now, considering there hasn't been any progress between Denver and Watson, it's led to other teams outside of the Nuggets emerging as potential suitors who would be interested in pursuing Watson via sign-and-trade.

Bucks Continue to Show Interest in Peyton Watson Sign-and-Trade

Most recently–– according to NBA insider Jake Fischer on The Stein Line–– the Milwaukee Bucks appear to have generated the most interest in making that happen.

"One source briefed on Watson's situation said Monday that they see the Bucks as the most likely external suitor to swipe Watson away from Denver," Fischer said within a recent batch of free agency rumors. "Sources say Denver is still holding out for the equivalent of at least two first-round picks in any sign-and-trade in which it loses Watson."

"Milwaukee holds a mammoth $25.5 million traded player exception to take on salary in addition to boasting various young players to offer up in various trade proposals to the Nuggets … depending on how far the Bucks are willing to go."

Some buzz has linked the Los Angeles Clippers to be interested in making a move for Watson, but that hasn't been circled back on within a couple of weeks now. The Atlanta Hawks also emerged as a suitor, but might not be in the running following their recent move for Lu Dort.

So therefore, the Bucks sit at the front of the line for the Nuggets to look towards for a sign-and-trade involving Watson.

Mar 27, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) after making a basket during the second half against the Utah Jazz at Ball Arena. Mandatory Credit: Christopher Hanewinckel-Imagn Images | IMAGN IMAGES via Reuters Connect

The trade exception they own from the Giannis Antetokounmpo trade tends to help their flexibility, and they have a combination of young players and picks that Denver might also be interested in taking on in a swap as well.

But it certainly won't be easy to pry away Watson from the Nuggets, despite the holdup that's been in play between the two sides in their contract negotiations. Denver still values their 23-year-old forward as a key part of their future; they just can't figure out a middle ground for what he's worth on that next deal.

What the Nuggets Would Look for in a Watson Sign-and-Trade

As a result, any package that were to be entertained by the Nuggets brass would have to be substantial; likely pretty close to what the Utah Jazz got in return for the sign-and-trade for their restricted free agent, Walker Kessler, with the Los Angeles Lakers. That move netted them two first rounders and two pick swaps.

Is that package truly in play for the Nuggets? It depends on how aggressive the Bucks, or any other suitor that emerges wants to be.

Doing such a deal to trade away their rising two-way forward would help their long-term outlook and provide them with some replenished draft capital that they've traded in recent years, but almost certainly make them worse in the short-term.

And for a team with title expectations and still hosting one of the best players in the world with Nikola Jokic, that long-term flexibility and additional draft capital may not be at the forefront of Denver's plans right now. They're looking to build a championship contender now, and having Watson on the roster helps that in a big way.

Time will tell how the Nuggets' negotiations with Watson continue to fare, but the longer that those talks are ongoing, the more that a sign-and-trade remains a possibility.

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