The Denver Nuggets are not done making moves, and they might finally be considering parting ways with Peyton Watson.
After announcing the signing of Lonnie Walker IV via a one-year deal for $3.3 million, Shams Charania of ESPN revealed that the Nuggets remain in active talks with several teams about a Watson sign-and-trade possibility.
The NBA insider listed the Cleveland Cavaliers, Milwaukee Bucks and the Los Angeles Clippers as some suitors for the talented wing.
"The Nuggets remain in active trade talks with multiple teams on a potential Watson sign-and-trade, including the Cleveland Cavaliers, Milwaukee Bucks and LA Clippers, sources told ESPN. Watson also holds a one-year, $6.5 million qualifying offer that would make him an unrestricted free agent next summer," per Charania.
Nuggets sign Lonnie Walker IV as Peyton Watson replacement?
Per Brett Siegel of ClutchPoints, signing Lonnie Walker IV to a one-year deal pushes the Denver Nuggets' current tax bill from $68M to over $80M.
Possibly keeping Peyton Watson will only increase the Nuggets' staggering financial penalties, and the team seems truly poised to finally cut its ties with the forward.
Watson remains unsigned as a marquee restricted free agent. The Nuggets hold the right to match any other team's offer, or even execute a possible sign-and-trade deal to send him elsewhere.
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.
The Walker IV signing might be an intriguing hint that the Nuggets are now preparing to pull the trigger for Watson's offseason exit.