The Denver Nuggets could be forced into a difficult roster decision if they retain restricted free agent Peyton Watson, according to Marc Stein. The veteran NBA reporter said Denver may need to make a trade to create financial flexibility.
“If [the Nuggets] keep Peyton Watson, there’s probably going to be a trade,” Stein said on DNVR Sports, via HoopsHype. “I’m gonna go out on a limb and say it’s probably going to be a trade that the DNVR Nuggets show does not approve of.”
Watson’s contract negotiations have become one of Denver’s biggest offseason storylines after the 23-year-old forward had a breakout 2025-26 season. Watson averaged 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks in 54 games while shooting 49.1% from the field and 41.1% from three-point range.
The Nuggets have reportedly offered Watson a five-year contract worth around $70 million, which would average approximately $14 million annually. However, Watson’s camp is believed to be seeking a deal closer to the five-year, $125 million extension Christian Braun received before the 2025-26 season.
Watson’s emergence has complicated Denver’s salary structure. The Nuggets are already operating around the second apron while trying to maintain a championship core built around Nikola Jokic and Jamal Murray. Jokic averaged 27.7 points, 12.9 rebounds and 10.7 assists in 65 games last season, finishing second in MVP voting, while Murray averaged 25.4 points and 7.1 assists over 75 games.
Stein noted that Denver’s preferred outcome would be moving Zeke Nnaji, but finding a trade partner could require additional assets.
“Their preferred scenario would be finding a trade home for Zeke Nnaji, but you know if you do that you’re attaching draft capital and the Nuggets are not exactly teeming with extra draft capital,” Stein said.
Nnaji played a limited role for Denver in 2025-26, averaging 3.7 points and 2.6 rebounds in 52 games while shooting 47.0% from the field. His contract, combined with the team’s limited draft resources, makes a salary-clearing trade more complicated.
Denver already sacrificed future flexibility during recent roster moves. The Nuggets traded down from No. 26 in the 2026 NBA Draft, acquiring the No. 35 pick and two future second-round selections from the San Antonio Spurs before selecting Trevon Brazile.
Keeping Watson would preserve one of Denver’s most valuable young assets. The former first-round pick has developed into a versatile wing who can defend multiple positions while providing efficient scoring next to Jokic and Murray. His 1.1 blocks per game ranked among the team’s top marks despite playing primarily on the perimeter.
The Nuggets finished the 2025-26 regular season with a 54-28 record, earning the No. 3 seed in the Western Conference, but their season ended with a 4-2 first-round playoff loss to the Minnesota Timberwolves.
