Peyton Watson is emerging as one of the most sought-after restricted free agents next summer, and league sources indicate the Denver Nuggets may struggle to match the market.
Watson and Denver did not agree to a contract extension before the 2025-26 season, avoiding the same “poison-pill” provisions applied to Christian Braun, according to Bennett Durando of the Denver Post.
The 23-year-old guard is off to a strong contract-year performance, averaging 10.5 points, 4.8 rebounds, and 1.6 assists over 26 games while shooting 50.3% from the field and 39.1% from three. His efficiency has made him a rising asset in a Nuggets roster currently 20-6 and atop the Western Conference standings.
Watson has steadily improved each season in Denver. After limited minutes in his rookie campaign, he now averages 26.2 minutes per game, contributing both offensively and defensively while fitting into a team led by Nikola Jokic and Jamal Murray.
Denver’s front office faces a dilemma, as Watson’s market value is projected to exceed the Nuggets’ current salary flexibility. Restricted free agency rules give Denver the right to match offers, but sources suggest the team may be priced out of a competitive bidding environment if multiple suitors pursue the guard.
The Nuggets have managed to maintain a top-tier record without an extension in place, but retaining Watson could become a central offseason priority. Denver may need to restructure contracts or clear cap space to remain competitive in the bidding process.
