Significant Development In Nuggets' Peyton Watson Dilemma

July 05, 2026 ,
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Restricted free agent Peyton Watson is undoubtedly a crucial figure that the Denver Nuggets do not want to lose. That has been the talking point around the NBA since the season ended. But while extension talks are underway "in earnest," per reports, there's also been a significant and surprising new development on that front on Sunday. 
A report from Sam Amick in The Athletic says that the Nuggets are now open to sign-and-trade scenarios for Watson, despite also saying that they will match any offer sheets for the super-athletic two-way wing. 
As the Nuggets and Watson’s agent, Rich Paul of the Klutch Sports Group, have continued to be apart in negotiations for a new contract, sources say Denver is also very open to the prospect of a sign-and-trade for the 23-year-old forward. 

Amick goes on to note that only the Brooklyn Nets and LA Clippers have the salary-cap space to submit the offer sheet Peyton wants, which a an annual salary north of $25 million. 

Evan Sidery suggests that the Clippers could offer a double sign-and-trade around their own RFA, Bennedict Mathurin.

Watson enjoyed a breakout season in his 4th-year, averaging 14.6 points, 4.9 rebounds, 2.1 assists, 1.1 blocks and 29.6 minutes in 54 games. And during a 17-game stretch when Nikola Jokic was out of the lineup, he upped that production to 22.5 points per game, while shooting a team-best 46.2% from beyond the arc.

His absence in the playoffs due to a hamstring strain was a key factor in the Nuggets being ousted in the first round by the Minnesota Timberwolves.  

Some interesting times ahead for Denver, who are in danger of being over the dreaded second apron, and must be careful about their balance sheet. 
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