Peyton Watson is a budding star. He's a restricted free agent this summer, and he's going to command a lot of money on the open market. The Nuggets, once again, are in a world of hurt in the cap department next year. There's only a narrow lane available to be in a position to match an offer. The Nuggets are going to have to make a trade to shed salary if they want to bring back P-Wat.
He's been the lightning rod in the starting lineup when everyone else went down with injuries, helping to lead the Nuggets to a 10-6 record with Nikola Jokic on the sidelines. Watson's having a career year in scoring as well. But as Bobby Marks of ESPN reminds us, the Nuggets are just $3.6 million under the second apron luxury tax for the next year.
That cap number is a big reason Denver's front office wanted to get under the luxury tax for this season. They at least avoid the additional penalties that the repeater tax would have triggered, but they are still projected to pay over $50 million in penalties alone for next season.
And that's before any money gets set aside for Watson. The Nuggets are going to be forced to spend based on their cap structure, not just this year, but for many years in the future.
Watson's already made it clear that the Nuggets made a mistake last summer. "As a business, you've got to operate [based on] what's best for your business. And when it comes time for me to make my decision next summer, I've got to operate as a business myself," he said. Watson's working to get the best deal he can, as he should.
What trades make the most sense to clear space for Watson
Rumors are swirling that Watson is expected to field offers in the range of $20-30 million per year. That's a lot of money. It's Aaron Gordon money. But I don't think the Nuggets move AG. He's too much of a fan favorite, and he's too integral to what makes the Nuggets flow. It's noticeable without him on the floor.
That leaves Cam Johnson and Christian Braun. Cam's on the hook for $23 million and Braun for $21 million next year. The only problem is that both of their trade values have likely taken a bit of a downgrade this season. They've both been hurt and haven't quite lived up to the expectations everyone had before the season started.
The Nuggets will have to get creative if they want to bring back P-Wat. They still only have 11 players signed on for next season, too. It's not an enviable situation for the front office, but if they're serious about making the most of Jokic's prime, they'll do what they can to bring P-Wat back.