The Denver Nuggets’ opening contract proposal to restricted free agent Peyton Watson was believed to be worth approximately $70 million over four years, according to NBA insider Marc Stein. The report provides the clearest indication yet of where negotiations currently stand as both sides continue working toward a long-term agreement.
Stein added that Watson has been weighing the possibility of playing the 2026-27 season on his qualifying offer instead of accepting Denver’s initial proposal. Doing so would allow the 23-year-old forward to become an unrestricted free agent next summer, giving him significantly more control over his future.
Watson is coming off a breakout campaign that dramatically increased his value around the league. After beginning his career in a limited reserve role, he averaged career highs of 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks across 54 games in 2025-26, making 40 starts. He also posted efficient shooting splits of 49.1% from the field and 41.1% from three-point range, emerging as one of Denver’s most reliable two-way players.
His offensive leap came after averaging just 8.1 points the previous season. Watson finished fourth on the Nuggets in scoring behind Nikola Jokic (27.7 points per game), Jamal Murray (25.4) and Aaron Gordon (16.2), helping Denver finish 54-28, third in the Western Conference. The Nuggets’ season ended with a six-game first-round playoff loss to the Minnesota Timberwolves.
Denver selected Watson with the 30th overall pick in the 2022 NBA Draft, and he completed his four-year rookie-scale contract worth approximately $11.3 million. His steady development from a defensive specialist into a starting-caliber wing has made him one of the most intriguing restricted free agents on the market.
Interest from rival teams has continued to build. Previous reports linked the Milwaukee Bucks to a potential sign-and-trade pursuit, while the Los Angeles Clippers and Atlanta Hawks have also been mentioned as teams monitoring Watson’s situation. Milwaukee, in particular, has been active following its offseason rebuild after trading Giannis Antetokounmpo and Bobby Portis, although Denver maintains the right to match any offer sheet Watson signs.
Despite the ongoing negotiations, multiple reports indicate the Nuggets remain confident they will retain the versatile forward. According to Tony Jones of The Athletic, Denver values Watson highly and has been comfortable allowing the restricted free-agent market to develop before finalizing a deal.
The organization’s leverage extends beyond matching rights. Jake Fischer previously reported that Denver values Watson at a level comparable to the compensation Utah received for Walker Kessler in his sign-and-trade to the Los Angeles Lakers—two unprotected first-round picks and two first-round pick swaps. That asking price underscores how highly the Nuggets view Watson after his breakout season.
