Cavaliers Finally Get Their Man Peyton Watson in 3-Team Deal

August 19, 2026 , ,
Social Media Feature Preview
The Cleveland Cavaliers lost out on the LeBron James sweepstakes. A third stint with his hometown team wasn't to be. Since then, the Cavs have been focusing their attention on trying to land the top available restricted free agent out on the market, Peyton Watson of the Denver Nuggets. 

The Nuggets are in a terrible financial bind. They are over the luxury tax threshold and sit in the dreaded second apron for the 2026–27 season. Re-signing RFA Watson has a pipe dream at this point, and several teams, led by the Cavs, have been trying to capitalize on the situation. 

Eric Pincus of Bleacher Report has detailed a three-team trade proposal that he felt could get a deal done, and finally land Watson in Cleveland:

Cleveland Cavaliers receive:
  • Peyton Watson

Denver Nuggets receive:
  • GG Jackson (from Grizzlies)
  • 2030 protected first-round pick (from Cavaliers)
  • $11.6 million trade exception (Peyton Watson)
  • $5.1 million trade exception (Zeke Nnaji)

Memphis Grizzlies receive:
  • Max Strus (from Cavaliers)
  • Zeke Nnaji (from Nuggets)
  • 2028 Minnesota Timberwolves second-rounder (from Nuggets)
  • 2031 Sacramento Kings second-rounder (from Nuggets)
  • 2032 Sacramento Kings second-rounder (from Cavaliers)
  • $3.5 million (from Cavaliers)
  • $3.5 million (from Nuggets)
  • $2.4 million trade exception (GG Jackson II)

For the Cavs, Watson would bring an exciting and promising 3-and-D wing to the team, with size and length. He would more than replace the departed Dean Wade, by providing some nice offensive upside (unlike Wade) along with elite defensive versatility and shot-blocking instincts (again, an upgrade from Wade). 

As for the Nuggets, they were already projected to have the highest payroll in the league this season, even without Watson. But with the RFA looking for somewhere between $20M-$25M a year, he's priced himself out of Denver, as Pincus notes. 

**UPDATE: Cavaliers trade for Watson in similar 3-team trade

In late-breaking news on Wednesday night, the Cavaliers did, indeed, trade for Watson, in a three-team trade. 
The real 3-team trade involves the LA Clippers taking on Strus, while the Nuggets get an unprotected 2031 Cavs first-round pick and a 2032 Kings second-rounder. 

Watson gets pretty close to what he was hoping for in salary, with a four-year, $88 million deal via sign-and-trade with Cleveland. The deal also includes a fourth-year player option.



Go To: NFL Rumors | MLB Rumors | NHL Rumors