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The Peyton Watson dilemma puts the Nuggets between a rock and a hard place

The Nuggets might have to trade someone to keep Watson. Cam Johnson seems likely.
Jan 22, 2026; Washington, District of Columbia, USA; Denver Nuggets guard Peyton Watson (8) reacts to a call during the second half against the Washington Wizards at Capital One Arena. Mandatory Credit: Daniel Kucin Jr.-Imagn Images
Jan 22, 2026; Washington, District of Columbia, USA; Denver Nuggets guard Peyton Watson (8) reacts to a call during the second half against the Washington Wizards at Capital One Arena. Mandatory Credit: Daniel Kucin Jr.-Imagn Images | Daniel Kucin Jr.-Imagn Images

Peyton Watson is going to be one of the most talked-about and sought-after free agents on the market this summer. Thankfully, he's a restricted free agent, and the Nuggets have a chance to match any offer he receives. But that itself presents a problem, because the Nuggets don't have the salary cap space left to fit what Watson will command. But they have to re-sign Watson. Letting his elite talent go could haunt them later.

So what are they to do? Unfortunately, shedding salary is the easiest path to bringing Watson back, and that means finding a trade partner. But it also means saying goodbye to a current member of the team to make way for the future star.

Michael Scotto reports that the Nuggets could put Cam Johnson's name out for trade offers in order to save on salary to re-sign Watson. If that's what it takes to bring back Watson, the Nuggets have to do it. Johnson is owed $23 million and change next season, and they're only a few million under the dreaded second apron tax, which can trigger penalties and additional fines on top of the fines the Nuggets are already expected to pay for being over the luxury tax next year.

Watson brings more to the table than Johnson does

Johnson has been playing better of late, but he still doesn't have the offensive prowess or take-over ability that Watson has shown. For the month of January, Watson averaged 21.9 points in 36 minutes of court time. He stepped up when others, including Johnson, were out with injuries.

Over the last 15 games, Johnson's still only averaging 13.7 points, up from his 11.9 on the season over 30.2 minutes. That's not the 17.3 points Watson has as a starter, and Watson added a Player of the Week Award for his performance from Jan. 5th to Jan 11th. P-Wat averaged 24.5 points, 8 rebounds, 4 assists, and he added 1.3 steals and 1.8 blocks, too.

That defense really separates Watson from Johnson, and it's a quality the Nuggets desperately need, as Nikola Jokic's defense has slowed over the last couple of years.

Watson is an all-around better bet

Not only is Watson a better offensive and defensive player than Johnson, but he's also six years younger than Johnson. He has a trajectory that is going up, whereas Johnson has probably shown us what we're going to get out of him. At 23, Watson is just getting started.

The sky is the limit for Watson, and that's why he's going to be chased by many teams this summer. But it's the Lakers that present the biggest challenge. The new ownership has deep pockets, and they aren't afraid to spend, and Watson is a Los Angeles native.

But that shouldn't matter if the Nuggets make the right moves to bring Watson back. They've got the final decision on any offer. He'll be worth it in the long run.

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