Nuggets guard Peyton Watson praises Shai Gilgeous-Alexander after the Thunder win but keeps his playoff defensive plans secret.
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The Denver Nuggets have reportedly offered restricted free agent Peyton Watson a four-year, $70 million contract, providing new context for the ongoing stalemate between the two sides and the growing likelihood of a sign-and-trade.
With negotiations dragging into mid-August, Watson and the Nuggets remain far apart on his value. The 23-year-old forward is reportedly seeking at least $20 million annually, while Denver's current proposal carries an average annual value of $17.5 million before accounting for a team option in the final season.
ClutchPoints NBA insider Brett Siegel reported last week that Watson's camp has not been pleased with Denver's approach.
“With the Nuggets only offering Watson a new deal that is slightly better than the mid-level exception, the young forward and his camp have felt disrespected by the organization, sources said. That is why sign-and-trade scenarios with other teams have been gaining more attention and are Watson's preferred path in restricted free agency.”
Siegel added that there had been no indication Watson would accept a long-term contract below his desired price.
“To this point, there have been zero indications that Watson will accept a deal from Denver that is less than $20 million in AAV. That is why the growing belief around the NBA is that if he is back with the Nuggets, it will only be on his $6.5 million qualifying offer, which still puts the team in a major financial burden.
“A trade to either LA or Milwaukee seems to be the most likely outcome for this restricted free agency situation.”
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Nuggets' $70 million offer leaves door open for Peyton Watson sign-and-trade
Nuggets guard Peyton Watson (8) controls the ball vs. Lakers
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The Athletic's Sam Amick provided additional clarity Thursday by reporting the specific terms of Denver's current offer. The proposal falls $10 million short of $20 million annually over four seasons and would give the Nuggets control over Watson's fourth year.
“Maybe the Denver Nuggets’ restricted free-agent wing eventually gets the money and role he’s seeking by way of sign-and-trade, with the Cleveland Cavaliers, Milwaukee Bucks and LA Clippers all remaining in the hunt for the 23-year-old. It’s possible he strikes a deal with the Nuggets, whose present offer — four years, $70 million, with a team option in the fourth season, per a league source — falls well short of where he sees his worth.”
Denver's financial situation further complicates the stalemate. The Nuggets have faced significant tax and second-apron concerns while attempting to construct a championship-caliber roster around Nikola Jokic.
The Cleveland Cavaliers, Milwaukee Bucks and Los Angeles Clippers remain potential sign-and-trade destinations for Watson. Unless Denver increases its offer or Watson lowers his contract demands, the latest reporting continues to point toward a trade as an increasingly realistic resolution.