Peyton Watson is increasingly unlikely to remain within the price range of the Denver Nuggets when he reaches restricted free agency next summer, according to league sources. Watson and the Nuggets did not agree to a contract extension before the season, leaving his future uncertain as he performs well in a contract year.
The third-year forward would have been tagged with a poison-pill provision had Denver extended him before the season. That designation would have created the same salary-matching complications currently affecting Christian Braun’s trade value.
Watson’s strong play this season has elevated his market value beyond what Denver may be willing to pay. His defensive ability represents exactly the type of skillset the Nuggets should be trying to add, not subtract from their roster.
The Nuggets face a difficult decision regarding Watson ahead of the February 5 trade deadline. Trading him now would guarantee some return value instead of potentially losing him for nothing in free agency.
However, dealing Watson would compromise Denver’s primary mission of competing for a championship this season. His defensive abilities addresses one of the team’s key needs at point-of-attack perimeter defense.
The Nuggets sit approximately $400,000 over the luxury tax threshold, adding financial pressure to roster decisions. Watson carries a $4.4 million cap hit, making him a potential target for cost-cutting measures.
Shedding Watson’s salary without receiving a rotation-caliber player back would signal ownership doubts about competing with the Oklahoma City Thunder. Such a move would contradict the organization’s messaging since summer after taking the Thunder to the seven games in the Western Conference Semifinals last season.