With the NBA’s summer transaction cycle just about concluded, the Nuggets’ front office must turn to their own internal affairs, like contract extensions. First-round rookies from the 2022 draft class are extension eligible, which means Denver can work out long-term deals with Christian Braun and Peyton Watson.
The problem is that with Denver’s loaded roster locked in, they are only going to be about $27 million below the second apron next offseason, and that’s assuming they don’t pick up Jonas Valanciunas’ option or add any other salary.
But with Braun taking precedence and likely commanding over $20 million a year, and the Nuggets almost certain to stay below the second apron, that doesn’t leave a lot of options for Watson.
Watson may get squeezed out of Denver next summer
Watson won’t be looking for the same kind of money as Braun, but surely he’ll want something close to $10 million a season. The Nuggets can’t afford to pay Braun and Watson without going over the apron or cutting costs elsewhere.
Denver could make that happen by next offseason, but that means letting Watson become a restricted free agent next summer. We’re seeing how that’s working out for players currently, and it’s clearly a situation the Nuggets and Watson both want to avoid.
The only alternative would seem to be finding a trade, and at that point, it may make sense to just move Watson. He’s a good player, especially on the defensive end, but with the Nuggets’ desire to win now and added depth, plus Watson’s desire to grow and maximize his earning potential, it might make sense for both sides to move on.
Trading Watson may be best move for both sides
As John Hollinger of The Athletic pointed out in a recent article, the Nuggets have almost no trade assets, and Watson may be the only way to change that. The team won’t be able to pay him what he wants anyway, so why not move him for picks, even younger prospects, or veterans who can help win now?
Nobody wants to see P-Wat go, and this would be a very sad ending to what started as such a promising career in Denver, but this is the harsh financial reality of the situation. There’s no real harm in letting him play out his final year in Denver, but if it becomes clear that they won’t be able to bring him back, his days in the Mile High City may be numbered.