The Denver Nuggets' plans to keep Peyton Watson will force them to make a significant decision to part ways with someone on their roster.
Should the Nuggets ultimately retain the talented wing in this year's free agency, NBA Insider Marc Stein believes that Denver will be positioned to execute a trade move to facilitate Watson's long-term stay and financial implications.
"Whatever the outcome is, if they keep Peyton Watson, there’s probably going to be a trade," Stein said on the DNVR Nuggets Podcast.
"I’m gonna go out on a limb and say it’s probably going to be a trade that the DNVR Nuggets show does not approve of."
Peyton Watson, Nuggets still stuck amid restricted free agency
Peyton Watson stands as one of the marquee players still left unsigned in this year's offseason. The forward hit the market as a restricted free agent.
As the Denver Nuggets are managing one of the most staggering payrolls in the league, keeping Watson poses a legitimate problem. With the young wing reportedly seeking over $25 million annual salary and a contract that is bigger than Christian Braun's five-year, $125 million deal, Denver will be in a dilemma about retaining the 23-year-old.
As Stein indicated, the Nuggets will be prompted to dump and make needed trades if they wish to keep Watson on their side. But this move poses risks, as the team may lose key and reliable depth to continue building around Nikola Jokic.
While they are interested in keeping Watson, the Nuggets have also shown intent to land a sign-and-trade deal for him. The Cleveland Cavaliers, Milwaukee Bucks, Atlanta Hawks, and Los Angeles Clippers have all been recently linked to the promising wing.
Watson enjoyed a breakout 2025-26 season, averaging a career-high 14.6 points, 4.9 rebounds, and 2.1 assists per game. However, injuries limited him to just 54 games.