The Denver Nuggets are setting an extremely high asking price in any potential sign-and-trade involving restricted free agent Peyton Watson. According to Jake Fischer of The Stein Line, Denver is seeking a return comparable to the package the Utah Jazz received for Walker Kessler: two unprotected first-round picks and two first-round pick swaps.
The report comes as the Nuggets continue negotiations with Watson, who became a restricted free agent after completing his four-year rookie contract. While Denver has repeatedly indicated it intends to match any offer sheet once the free agency moratorium ends, league sources have also said the front office remains open to sign-and-trade discussions if the two sides cannot reach agreement on a new contract.
Watson dramatically increased his value during the 2025-26 season, establishing himself as one of Denver’s most important young players. The 23-year-old averaged career highs of 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks across 54 games, including 40 starts. He also posted career-best shooting percentages, converting 49.1% from the field and 41.1% from three-point range while averaging nearly 30 minutes per game.
His breakout campaign made him Denver’s fourth-leading scorer behind Nikola Jokic (27.7 points), Jamal Murray (25.4) and Aaron Gordon (16.2). The Nuggets finished 54-28, good for the No. 3 seed in the Western Conference, before being eliminated by the Minnesota Timberwolves in six games during the first round of the playoffs.
Denver’s reported valuation appears to be tied to the market recently established by Kessler. The Los Angeles Lakers acquired the 24-year-old center from the Jazz in a sign-and-trade completed on July 9, sending Utah unprotected first-round picks in 2031 and 2033 along with first-round pick swaps in 2028 and 2030. Kessler subsequently signed a four-year, $130 million contract with the Lakers.
Although Kessler and Watson play different positions, both entered restricted free agency as 23- to 24-year-old starters with significant upside. Watson’s emergence as an efficient two-way wing capable of defending multiple positions and stretching the floor has made him one of the more intriguing young forwards available this offseason.
According to Sam Amick of The Athletic, only the Brooklyn Nets and Los Angeles Clippers currently possess the cap flexibility necessary to present Watson with the type of offer sheet he is believed to be seeking. The Clippers, however, are also managing the restricted free agency of Bennedict Mathurin, while Brooklyn remains one of the few teams with substantial salary-cap space.
