Nuggets offer Peyton Watson 5-year, $70 million deal: Sources

Now that the Denver Nuggets have matched the Oklahoma City Thunder’s offer sheet for restricted free-agent forward Spencer Jones, the attention turns to Denver’s 23-year-old dynamic forward, Peyton Watson.

The Nuggets have offered Watson, a restricted free agent, $70 million over five seasons, according to league sources who spoke to The Athletic on condition of anonymity because the deal is not final. The Milwaukee Bucks, Atlanta Hawks and Los Angeles Clippers are also interested in acquiring Watson through potential sign-and-trade opportunities, the league sources said.

Thus begins a balancing act for the Nuggets, who have long stated they highly value Watson, and for Watson, who is in line for a second contract. The Nuggets’ payroll is in the second apron because they decided to match Oklahoma City’s offer sheet for Jones. Denver is attempting to move a contract or two to get back under the second apron and clear enough money to retain Watson, the league sources said.

Introduced in the 2023 collective bargaining agreement, the second apron is a payroll threshold (roughly $222 million this season) that triggers several roster-building restrictions.

Multiple teams have made sign-and-trade offers for Watson, but so far the Nuggets’ asking price has been high. Watson had a breakout season in 2025-26. He averaged almost 15 points per game and excelled during a 16-game stretch that Nikola Jokić, Denver’s three-time MVP, missed due to injury in the middle of the season. Watson improved at creating offense off the dribble, has improved his shooting considerably and is one of the Nuggets’ most athletic players.

Losing Watson would be a major setback for Denver. Keeping him becomes more important as players such as Aaron Gordon, who will turn 31 before next season, age out of their prime years. The Nuggets won the 2023 NBA championship, but they have not gotten back to the NBA Finals since. They are the only team in the league in second-apron territory.