After re-signing Spencer Jones to a two-year, $12 million deal, the Denver Nuggets have their full attention on restricted free agent Peyton Watson. However, they are seemingly still far from a deal with the 23-year-old wing.
There has been more and more talk about the Nuggets finding a sign-and-trade partner for Watson, despite the franchise certainly wanting to bring him back to Denver. The two sides are obviously far apart in contract talks for things to drag out this long, and it could lead to Watson taking a huge gamble instead.
NBA insider Marc Stein of The Stein Line reports that Watson could ultimately take the qualifying offer, worth just $6.5 million for the 2026-27 season. This would allow him to play out the year in Denver, then hit unrestricted free agency next offseason.
"League sources say Watson, like Detroit's Jalen Duren, has been weighing the unappealing prospect of playing out the 2026-27 season on a qualifying offer with the intent to become an unrestricted free agent next summer. Actually doing so, mind you, means leaving millions on the table," Stein wrote. "In Watson's case, specifically, that would mean playing next season for just $6.5 million. The Nuggets' initial pitches were believed to be in the $70 million range over four years."
Jan 27, 2026; Denver, Colorado, USA; Denver Nuggets guard Peyton Watson (8) talks to head coach David Adelman during the first quarter against the Detroit Pistons at Ball Arena. | IMAGN IMAGES via Reuters Connect
Stein reports that the Nuggets were initially trying to get Watson to sign a deal worth around $70 million over four years ($17.4M/year), despite the breakout wing and his camp seemingly wanting to at least eclipse Christian Braun's mark of $25 million per year.
We can assume that since then, the Nuggets have raised their offer, but are likely still far from what Watson is asking for. Still, there is undoubtedly a scenario where he would rather play one year under the qualifying offer, leaving at least $70 million of guaranteed money on the table, to bet on himself and hope for a bigger payday in UFA next year.
Would Watson actually sign the QO?
In a certain case, this could work wonders for Watson. It is very hard for a player to get a significant payday in restricted free agency, especially knowing the Nuggets can simply match any offer he receives this summer. At this point, the only way Watson finds a new home is if the Nuggets agree to a sign-and-trade.
On the UFA market, however, teams would have a bidding war for a young player of his caliber.
The following teams are in active pursuit of Peyton Watson via sign-and-trade, per @ShamsCharania
- Bucks
- Clippers
- Hawks pic.twitter.com/SXoyh2ZMiT
— Fullcourtpass (@Fullcourtpass) July 27, 2026
This could also be a negotiation tactic by Watson's representatives at Klutch Sports, as this could entice the Nuggets to up their offer to avoid him signing the QO and hitting unrestricted free agency in 2027. Keeping Watson under contract long-term is obviously the priority, and really, the Nuggets should be willing to pay a bit extra to do so.
However, the Nuggets would also be just fine with Watson signing the QO. Sure, he would hit unrestricted free agency next season, but by keeping Cameron Johnson under contract, they already seem committed to competing for a title in 2027. This would allow them to keep Watson next season for just $6.5 million, cutting their luxury tax bill tremendously and even giving them a chance to get under the second apron with a higher-salary trade.
Keeping Watson at any cost
Unless the Nuggets could actually get value from a sign-and-trade, they should be much more willing to pay Watson closer to what he wants. Keeping their homegrown talent should be a priority, especially in a player like Watson who is so versatile on both sides of the ball.
Sure, there is doubt about why Watson is even demanding upwards of $25 million per year, considering he only had a couple of good months of high-level play last season, but we all saw what he is capable of when given the opportunity to shine.
We will likely see the Nuggets sign Watson to a long-term deal, although it is certainly worth monitoring whether he is actually willing to sign the qualifying offer to bet on himself.
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