The Good, Bad and Ugly of Nuggets Trading Peyton Watson to Cavaliers

The Denver Nuggets have officially ended their Peyton Watson free agency saga, as a trade was agreed to on Wednesday night, sending the 23-year-old forward over to the Cleveland Cavaliers within a multiple-team trade.

The deal would send Denver a 2031 first round pick from the Cavaliers and 2032 second rounder from the Sacramento Kings in exchange for Watson. Cleveland would then agree to a four-year, $88 million contract for Watson to join their roster, and effectively end his tenure in the Mile High.

It's been a trade that, after the dust has settled, has seen a wide range of reviews for Denver's side of the deal. A few see some good in the Nuggets' outcome, while others view things a bit differently.

Let's break down the Nuggets' latest Peyton Watson trade by sorting through what exactly the good, bad, and ugly is of the move that was just made with Cleveland:

The Good: The Nuggets' Financial Standing

Jun 1, 2023; Denver, CO, USA; Denver Nuggets owner Stan Kroenke (left) and vice chairman Josh Kroenke before the game against the Miami Heat in game one of the 2023 NBA Finals at Ball Arena. Mandatory Credit: Isaiah J. Downing-USA TODAY Sports | USA TODAY Sports via Reuters Connect

The biggest positive takeaway the Nuggets can gather out of this trade is that their financial questions and the potential luxury tax costs that were in play in the event Peyton Watson re-signed are now no longer.

Denver won't have to foot the bill of a historic luxury tax that would've likely reached over $200 million with a new deal for Watson, and instead get draft capital in return for him without any returning salaries, outside of two-way signee Julian Reese, who's expected to be waived from the Nuggets following the deal.

So in terms of money coming in versus money going out, Denver comes out on top in that sense, which has been a long-standing talking point for this team since their summer first started. However, other aspects of this deal don't exactly look as strong as the financial side––and that might be a bit of an understatement.

The Bad: The Return for Peyton Watson

Jan 27, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) reacts in the fourth quarter against the Detroit Pistons at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | IMAGN IMAGES via Reuters Connect

When talks of a sign-and-trade first surfaced as a possibility for the Nuggets and Watson, the asking price for him was expected to be steep; probably closer to what the Utah Jazz got in exchange for their own restricted free agent this summer, Walker Kessler. He was worth two first rounders and two pick swaps from the LA Lakers.

Then that asking price gradually scaled down for the Nuggets. What was first a price of multiple first-round draft picks dropped down, then down a little more, before the end result for Watson's return eventually became just one future first-round pick from the Cleveland Cavaliers in 2031.

For a player like Watson that appeared set to be a key young piece of their lineup for multiple years, one first-round pick in a trade return is a measly package, all things considered.

Sure, the Nuggets do save a bit of money. But when those cap savings come at the cost of selling a valuable young piece of the roster for pennies on the dollar, it's tough to consider those savings a net positive when one first-round pick is all they got for their breakout star from last season.

The Ugly: Denver's Future Without Peyton Watson

Apr 20, 2026; Denver, Colorado, USA; Denver Nuggets center Nikola Jokic (15) reacts in the second quarter against the Minnesota Timberwolves during game two of the first round of the 2026 NBA Playoffs at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | IMAGN IMAGES via Reuters Connect

This is where things really get rough for Denver. Because without Peyton Watson back on a second contract, it's tough to pick out many players on the Nuggets' roster for next year who can be rotational, young pieces to build around for the foreseeable future.

The Nuggets have zero players on their current roster who are under 24 years of age. Peyton Watson was their only player who fit that criterion before Denver made their latest deal. The team's young core now primarily consists of Julian Strawther, DaRon Holmes, and Trevon Brazile, their 35th-overall pick in this summer's draft.

Denver has no tradeable first-round picks until the 2030s, has just three second-round picks until 2033, is strapped for cap space with or without Watson on the roster, and their top three players on the roster are all going to be at least 30 years old this season.

As of this point in this offseason, Denver's roster hasn't gotten any better from where they stood last year, and their future for the next three to five years, looks even rougher than it did to start the summer without Watson in town. So now might be the time to buckle up for what might be ahead in the Mile High past this year.

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