The Peyton Watson situation in Denver is getting worse by the day. On Sunday, the Denver Nuggets matched the Oklahoma City Thunder’s offer sheet for forward Spencer Jones— a move that might seem, on the surface, necessary and inconsequential. But in doing so, the Nuggets pushed themselves over the second apron, severely limiting their financial flexibility to get a new deal done with Watson, who remains a restricted free agent after his rookie deal expired following the 2025-26 season.
On Tuesday, The Athletic’s Tony Jones reported that the Nuggets have offered Watson a deal worth around $70 million over five years, which would give him an annual salary of roughly $14 million. The issue is that it’s nowhere close to what Watson is reportedly seeking — a deal in the range of $25 to $28 million per year, nearly double what Denver just offered him.
Meanwhile, other rival teams are circling and exploring a potential sign-and-trade, including the Milwaukee Bucks, Atlanta Hawks, and Los Angeles Clippers.
Watson is still just 23 years old and coming off the best season of his young career, averaging 14.6 points, 4.9 rebounds, 2.1 assists, 1.1 blocks, and 0.9 steals in 29.6 minutes per game — all career highs — while shooting 49.1% from the field and 41.1% from 3-point range.
A 6-foot-8, 200-pound wing who can score on all three levels, defend along the perimeter, and shoot over 40% from deep is typically the type of player you want to hang on to, especially one who hasn’t even hit his prime yet.
But with long-term deals to Nikola Jokic, Jamal Murray, and Aaron Gordon eating up most of the salary cap, the Nuggets have put themselves in a difficult spot — one where they may have to part ways with one of those pillar players, or with one of the most exciting young two-way talents in the NBA.