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Lakers, Cap Space Teams Preparing Restricted Free Agency Interest In Peyton Watson

January 29, 2026 by Real GM

Denver Nuggets swingman Peyton Watson has emerged as a major restricted free agency target for teams with projected cap space this summer, including the Los Angeles Lakers. Rival executives are increasingly curious about Denver’s ability to retain the fourth-year player following his recent breakout performance amid the team’s injury struggles.

Watson’s restricted free agency is already shaping up as a significant offseason domino, according to sources. The situation will be monitored closely over the coming months as Watson continues to showcase improved production. Watson is represented by Rich Paul of Klutch Sports.

Watson is averaging 14.4 points, 5.0 rebounds and 1.9 assists in 30.1 minutes across 44 games this season. He is shooting 41.1 percent from three-point range, demonstrating substantial improvement as a perimeter threat. His expanded role has come during a period when Denver has faced significant health challenges.

Nuggets head coach David Adelman addressed Watson’s contract situation before the season began. Adelman indicated the young wing has an opportunity to earn substantial compensation through strong play during the campaign.

“Peyton has a chance here,” Adelman said. “If he has a great year, he can put himself where he wants to. That’s what our league is about. You prove it every day. You prove it every year. And eventually, if you work hard and you do the right things, you’ll benefit.”

Denver extended Christian Braun before the season on a five-year, $125 million deal. That commitment may complicate the Nuggets’ financial flexibility when addressing Watson’s restricted free agency this summer. The franchise faces difficult decisions regarding its roster construction moving forward.

Watson’s strong shooting percentages and improved all-around play have elevated his market value significantly. Teams with available cap space are already positioning themselves to potentially submit offer sheets that could force Denver into a challenging decision. The Nuggets will retain the right to match any offer Watson receives as a restricted free agent.

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