Peyton Watson's Future With Nuggets Could Take Surprising Turn

We are now a week into the 2026 NBA free agency cycle, and the Denver Nuggets have yet to come to terms on a new deal with restricted free agent Peyton Watson. Granted, the restricted free agency market typically moves slower, but fans are eager to see where the franchise stands with the 23-year-old breakout wing.

Even though Watson still sits on the market, the expectation has always been that the Nuggets will do what they can to re-sign him. He has reportedly garnered interest from a handful of teams, but as the market moves, his suitors are dwindling, and therefore, his price is dropping. Regardless of what opposing teams are willing to offer him, though, the Nuggets are expected to match any offer he receives, per The Athletic's Sam Amick.

Mar 22, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) smiles before the game against the Portland Trail Blazers at Ball Arena. | IMAGN IMAGES via Reuters Connect

However, things could go down a different path. Amick also reports that the Nuggets and Watson are still far apart on contract negotiations, and Denver is could be open to finding a sign-and-trade for Watson.

"The Denver Nuggets intend to match any offers for restricted free agent Peyton Watson when the NBA’s moratorium lifts on Monday, said league sources who were granted anonymity to discuss the ongoing negotiations," Amick reported. "Yet as the Nuggets and Watson’s agent, Rich Paul of the Klutch Sports Group, have continued to be apart in negotiations for a new contract, sources say Denver is also very open to the prospect of a sign-and-trade for the 23-year-old forward."

Of course, there has been some slight concern around Watson's free agency, as the 23-year-old drastically increased his price tag after a breakout season, but the Nuggets have no reason not to match any offer he receives. Now, though, a sign-and-trade could be intriguing for the Nuggets, depending on what they get in return.

Peyton Watson, Nuggets remain apart in contract negotiations, per @sam_amick.

Nuggets intend to match any offer sheet for Watson, but they are also open to sign-and-trade offers.
— Underdog NBA (@UnderdogNBA) July 6, 2026

What a sign-and-trade could look like

This offseason, we saw a blockbuster sign-and-trade that sent Walker Kessler to the Los Angeles Lakers, while the Utah Jazz got two unprotected first-round picks and two first-round pick swaps in return. This would be a haul for the Nuggets that would be hard to reject. However, Denver fans can save their breath.

A Nuggets' sign-and-trade scenario with Watson will not look quite like what we saw with Kessler, but Denver could still get valuable pieces in return.

Amick reported that the L.A. Clippers and Brooklyn Nets have the salary cap to offer Watson what he is asking for. The Clippers, though, are a much more likely suitor, as they have actually shown "legitimate interest" in Watson. Could the Nuggets and Clippers work out a sign-and-trade that sends Watson to L.A. in exchange for Derrick Jones Jr. and second-round picks?

What the Nuggets should do

The Nuggets are in a tough spot, as they have been expected to cut costs to feel more comfortable signing Watson to a pricy contract. Cameron Johnson, Christian Braun, and Aaron Gordon have all been floated as potential trade candidates, but now the franchise is reportedly considering running it back, despite being well over the second apron, per The Stein Line.

Peyton Watson self-creation leap pic.twitter.com/6oKZwf5eIr
— Brett Usher (@UsherNBA) January 23, 2026

Ideally, the Nuggets have the guts to re-sign Watson to a long-term deal, while retaining their core. The Nuggets' chances of trading for a star are quietly slipping away, so their next best option is to run it back and hope for better health. For all we know, a healthy Nuggets team would've won 60 games last season, and there are plenty of reasons to give it another shot.

Watson's potential is through the roof, and we could even see him take another leap next season. Giving their core of Jamal Murray, Nikola Jokic, Gordon, Braun, Johnson, and Watson another run could prove effective, especially if they round out their roster with another ball-handler and defensive-minded wing.

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