Where Nuggets Stand in Sign-and-Trade Talks for Peyton Watson

A Peyton Watson sign-and-trade is still on the table for the Denver Nuggets.

Jan 13, 2026; New Orleans, Louisiana, USA; Denver Nuggets guard Peyton Watson (8) reacts to making a basket against the New Orleans Pelicans during the fourth quarter at Smoothie King Center. | IMAGN IMAGES via Reuters Connect

This has been a hectic offseason across the NBA, and the Denver Nuggets have had their own issues to deal with. Peyton Watson, coming off a breakout season, is still a restricted free agent, and it remains unclear how close the two sides are to a new deal. The expectation has been that the Nuggets will find a way to re-sign Watson, regardless of the cost, but there has obviously been no agreement yet.

NBA insider Michael Scotto of HoopsHype reports that the Nuggets are still interested in bringing back Watson, but they have four rival teams on their tail for a potential sign-and-trade.

"The Denver Nuggets remain interested in retaining restricted free agent forward Peyton Watson amid sign-and-trade interest from the Milwaukee Bucks, Cleveland Cavaliers, Atlanta Hawks, and Los Angeles Clippers," Scotto reported on Friday morning.

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

The Bucks, Cavaliers, Clippers, and Hawks have all shown interest in Watson, with Milwaukee and L.A. being the most commonly brought-up destinations for the 23-year-old. However, a new suitor in Cleveland is certainly intriguing.

The good news for the Nuggets is that if they decide to go the sign-and-trade route, they have several potential suitors. The bad news is that they are still not getting the value from Watson they want.

Offers are falling short

Scotto reports that the Nuggets are asking for "at least one first-round pick and one notable player" in return for Watson, but they have not received any offers close to what they want.

"Denver’s price tag in any sign-and-trade scenario has shifted to at least one first-round pick and one notable player, per multiple reports, and confirmed by HoopsHype. As of now, the Bucks, Cavaliers, Hawks, and Clippers have not offered a first-round pick to the Nuggets in sign-and-trade discussions for Watson, league sources told HoopsHype," Scotto wrote.

The Denver Nuggets have yet to receive a sign-and-trade offer for Peyton Watson that includes even a SINGLE first-round pick, per @MikeAScotto.

The Clippers, Cavaliers, Bucks, and Hawks have used their leverage and held firm about not including first-round draft capital.

(via… pic.twitter.com/CJTErf2qro

— APHoops (@APH00PS) July 31, 2026

For the Denver crowd that wants the Nuggets to keep Watson, this is good. Sure, if they feel like they need to find a suitor for Watson, they need these sign-and-trade offers to improve, but this should entice the franchise to simply re-sign him.

Unfortunately for the Nuggets, Watson's asking price seems to be a bit too high for their liking. NBA insider Tony Jones of The Athletic reported that the Nuggets are offering Watson a five-year, $70 million deal, which falls well short of his rumored expectation of around $25 million per year.

What's next for Watson?

With the Nuggets not getting the proper value in sign-and-trade talks and the two sides still far apart in contract negotiations, there is a growing possibility of Watson taking the qualifying offer.

"Should Watson not garner the desired asking price in a reluctant sign-and-trade scenario for Denver, and if the Nuggets fail to agree to a long-term deal with Watson, there’s the real possibility of Watson returning to the Nuggets on his one-year, $6.5 million qualifying offer, which would make him an unrestricted free agent next summer," Scotto finished.

how is Peyton Watson still not signed?? pic.twitter.com/sOheENBmHY

— Role Player Performances (@BenchHighlights) July 16, 2026

The qualifying offer would guarantee Watson $6.5 million for the 2026-27 season, which is obviously well short of what he wants, but it would allow him to hit unrestricted free agency next summer. This would be a risky move for Watson, as he would be turning down a long-term deal right now to bet on himself next season. However, it could be his best option if the Nuggets are not willing to improve their contract offer.

As it stands, it feels like Watson will return to Denver next season, but it remains to be seen whether it will be on a long-term deal or on the qualifying offer.

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