The rumors surrounding Peyton Watson's restricted free agency continue to grow. Now, it appears the Cleveland Cavaliers are giving themselves a chance to kick the tires on adding the 23-year-old restricted free-agent forward. But the rumors of who the Cavs may have available for the Denver Nuggets in a sign-and-trade just don't make sense for the Nuggets. The only option that does make sense for the Nuggets is Jaylon Tyson.
The latest rumor, fresh from HoopsHype and Michael Scotto, says that the Cavs have made contact with the Nuggets to express interest in Watson.
"The Cavaliers have recently called to express interest in a sign-and-trade for Denver Nuggets restricted free-agent forward Peyton Watson, league sources told HoopsHype," says Scotto. "As the Cavaliers survey the trade market, the expiring contracts of starting small forward Max Strus ($16.66 million) and backup point guard Dennis Schroeder ($14.81 million) are trade candidates."
Well, that's interesting. Neither of those two options makes much sense for the Nuggets, who are trying to shed salary. Sure, Schroeder would fill the hole at backup point guard, but it would only make sense in the right deal due to his salary. But Tyson, a young, 3-and-D wing who plays the natural two-guard, would be a great match. But the Cavs may not want to give him up, for good reason.
Tyson would be an excellent replacement for Watson
With the Nuggets above the second apron penalty threshold, taking back a player in a sign-and-trade would hard cap the Nuggets at the second apron. So if they take a player back in the deal, they'd better make sure he's the right fit without any other spending room left. Tyson would fit right in.
Tyson was the 20th pick in the 2024 NBA Draft, and he started 42 games for the Cavs in 2025-26 while scoring 13.2 points and adding 5.1 rebounds. He profiles very similarly to Watson, perhaps with a little less defensive acumen. Plus, he's on a team-friendly contract. Tyson is set to make $3.6 million this year and $5.6 million on a team option for 2027-28.
All reasons why the Cavs are probably going to be looking to hold onto their young wing, and why he's a great fit for the sign-and-trade for the Nuggets.
Additionally, the Cavs have a 2031 first-round pick available that they could package in the deal, which would get the Nuggets into the range of the rumored lower asking price of "a really good high-level player as well as one first-round pick" that Shams Charania has reported the Nuggets have lowered their asking price to.
But that might be tough to get done with Tyson and Watson being so similar in profiles. But he's the only player that truly makes sense as a replacement for Watson from the Cavs.
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