Why a Peyton Watson Sign-and-Trade Is Unlikely for the Nuggets

The biggest question mark around the Denver Nuggets' 2026 offseason has been Peyton Watson. The 23-year-old breakout wing is sitting in restricted free agency, and his future in Denver will be uncertain until he finally signs a deal.

Coming off a breakout season, Watson's price tag has increased drastically. Many experts believe Watson's next contract will be worth around $25 million per year, with Christian Braun's contract set as a benchmark for him. By signing him to such a large contract without making any other moves, the Nuggets would be in financial purgatory, sitting well above the second apron.

Denver's financial situation has created an expectation that the Nuggets will explore sign-and-trade scenarios for Watson, although it is hard to buy into those rumors.

Nuggets will re-sign Watson

Mar 25, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) reacts after a play in the fourth quarter against the Dallas Mavericks at Ball Arena. | IMAGN IMAGES via Reuters Connect

Despite the tough financial situation it would put them in, the Nuggets seem committed to giving this core another run. By turning away trade talks for veteran forward Cameron Johnson, the Nuggets have seemingly shifted their offseason focus, and it would be shocking if they did not bring back Watson at this point.

As The Athletic's Tony Jones reported last week, the Nuggets "value Watson significantly," and feel confident that they are "in a good spot to retain his services."

The Nuggets' stance with Watson has not changed at all throughout the offseason, as it is clear the franchise wants him back. The only difference has been the recent surge of sign-and-trade rumors, but again, it is hard to fully buy into those.

The Denver Nuggets are open to sign-and-trade scenarios for Peyton Watson, per @sam_amick. pic.twitter.com/lCGMpjMGSX
— APHoops (@APH00PS) July 6, 2026

Most recently, three teams have been mentioned as sign-and-trade suitors for Watson: The L.A. Clippers, Milwaukee Bucks, and Atlanta Hawks, per The Stein Line's Marc Stein. Obviously, it makes sense for these teams to be eyeing Watson, but it would take a lot for the Nuggets to actually part with the young wing.

The Clippers, who seem to be the frontrunner for Watson, still await the NBA's decision on their investigation into Kawhi Leonard and Aspiration. Not to mention, they are in a similar situation with Bennedict Mathurin, exploring sign-and-trade options of their own for the RFA wing.

As long as the Nuggets are willing to pay a hefty tax penalty, which they seem more content with than expected, then there is no reason to let go of Watson. For a team that needs to bolster its young core and add more versatility on both sides of the ball, Watson is a key piece to Denver's puzzle.

Peyton Watson this season:

14.9 PPG (career-high)
4.9 RPG (career-high)
1.2 BPG
1.5 3PM (career-high)
41.7 3P%

The only player in the West with 50+ STL, 50+ BLK and 50+ 3P. pic.twitter.com/0IruWDXybE
— StatMuse (@statmuse) February 6, 2026

At this point, the bigger question should be what the Nuggets do after they re-sign Watson. Will they then finally find a trade partner for Johnson? Or are they actually willing to go into the 2026-27 season as the only team in the NBA above the second apron?

Unless the Nuggets get a monstrous offer in a Watson sign-and-trade, we will see the 23-year-old wing in a Denver uniform by training camp. This situation might take a while, but by the end, it would be surprising if Watson was not a Nugget.

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