Denver Nuggets fans are still waiting for the most important free agency domino to drop, and no, I'm not talking about LeBron James. Peyton Watson is a restricted free agent and is due for a nice payday after the front office passed on extending him last October, one that could vault the team into the second tax apron, which comes with its fears, but can easily be justified.
The most straightforward way for it to be justified would be if Denver won another championship, but that's a lot easier said than done. Still, it's very much possible. The Nuggets aren't that far removed from winning their first title, and are capable of doing it again (as long as injury luck is kinder to them than it was last season), especially with the leap that Watson made in 2025-26.
And even if another title doesn't come next season (or even the one after that), young, talented wings like Watson don't come around often. He's only 22 (he'll turn 23 in September) and could be in Denver long-term, even after Nikola Jokić's time in the NBA ends. It'd make it easier to navigate the transition to life without the superstar.
Investing in him is worth it, even though it would bring luxury-tax penalties and second-apron difficulties; that is, if Denver doesn't make a trade to offload salary (and that can still happen!).
Nuggets need to retain Peyton Watson
The good thing is that on Friday, Tony Jones of The Athletic reported that Denver believes it is in a "good spot" to keep Watson (subscription required) and that it needs to let the RFA process play out.
Rich Paul, who represents Watson, wants to make sure he sets his client up for the best possible payday, and there is no rush. Anyway, the Clippers, who could make the Nuggets the kind of offer they might accept in a sign-and-trade, are preoccupied with the Kawhi Leonard saga right now, the outcome of which will determine their direction.
Watson's restricted free agency could drag on closer to the start of the season. What we do know is that if he stays in Denver, the team will pay him considerably more (as in $20-$25 million annually) than it would have if it had extended him before last season started. That doesn't matter now, as it's something the Nuggets should happily agree to, knowing what it will mean for their future.
Denver can win in more ways than one if Watson's back in the Mile High City on a multi-year deal (not the qualifying offer).
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