The Denver Nuggets intend to match any offers for restricted free agent Peyton Watson when the NBA’s moratorium lifts on Monday, said league sources. Yet, 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.
The Nuggets’ primary hope, the sources said, is to retain Watson, the fourth-year player who was taken 30th in the 2022 draft. The rules relating to restricted free agency have created a challenging landscape for players in that position, as seen several times this offseason.
Nuggets’ Strategy and Financial Landscape
The Nuggets’ front office, led by Ben Tenzer and Jon Wallace, has not been given a mandate to cut costs by ownership, despite a widespread belief that the team would be motivated to avoid the second apron by shedding salary this summer. This messaging has become even more meaningful in recent days, as the Nuggets are considered to be among the teams still in the running for unrestricted free agent LeBron James, who is also represented by Paul.
Negotiations for a new contract between the Nuggets and Watson’s agent have remained apart. The team is prepared to match any offers for Watson, but the openness to a sign-and-trade indicates a willingness to explore all avenues for the young forward.
Market Interest and Comparable Situations
It remains unclear how many teams are pursuing Watson. However, only the Brooklyn Nets and LA Clippers reportedly possess the salary-cap space to submit the offer sheet Watson desires. The Clippers, league sources said, have shown legitimate interest in Watson but are also navigating their own restricted free agency situation with Bennedict Mathurin, which complicates matters.
Several teams are also known to have registered interest in a sign-and-trade for Watson. The recently resolved Walker Kessler situation with the Utah Jazz is perhaps the best recent comparison to Watson’s, highlighting the complexities of restricted free agency.
In Kessler’s case, Utah consistently signalled a desire to match offers for the centre and a preference to avoid a sign-and-trade. However, the Jazz eventually arranged a deal with the Lakers, deciding that the chance to land two unprotected first-round picks and two first-round swaps was better than possibly overpaying Kessler. Kessler ultimately signed with the Lakers on a four-year, $130 million deal.
Watson’s Breakout Season
Watson proved to be one of Denver’s most valuable players last season, logging 14.6 points, 4.9 rebounds, 2.1 assists, 1.1 blocks, and 29.6 minutes per game in 54 appearances, including 40 starts. This represented a breakout campaign for the young forward.
Following Nikola Jokić’s hyperextended knee injury in late December, Watson enjoyed the best 17-game stretch of his career. Between then and February 1, he averaged 22.5 points, 5.6 rebounds, 2.8 assists, 1.1 steals, and 1.4 blocks.
During this period, Watson shot a team-best 46.2 percent on three-pointers. Denver went 10-7 during this stretch, remaining near the top of the Western Conference standings despite missing their three-time MVP. Watson later suffered a Grade 2 hamstring strain.
As the NBA’s moratorium lifts, the future of Peyton Watson with the Denver Nuggets will be closely watched, with both a matching offer and a potential sign-and-trade remaining possibilities for the restricted free agent.