The Denver Nuggets intend to match any offer sheet for restricted free agent Peyton Watson when the NBA’s free agency moratorium ends Monday, according to Sam Amick of The Athletic. However, league sources also told Amick that Denver is open to discussing a sign-and-trade if contract negotiations with Watson’s camp continue to stall.
Watson, represented by Rich Paul of Klutch Sports Group, reached restricted free agency after completing the four-year, $11.2 million rookie-scale contract he signed as the 30th overall pick in the 2022 NBA Draft. While the Nuggets hold matching rights, the report indicates the two sides remain apart on the terms of a new deal.
The 23-year-old is coming off the best season of his career and has significantly increased his value over the past two years. Watson averaged career highs of 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks in 54 games during the 2025-26 season, making 40 starts. He also posted career-best shooting splits, connecting on 49.1 percent from the field and 41.1 percent from three-point range while averaging nearly 30 minutes per game.
His emergence gave Denver another reliable two-way wing alongside stars Nikola Jokic and Jamal Murray. Watson ranked fourth on the team in scoring behind Jokic (27.7 points), Murray (25.4) and Aaron Gordon (16.2), helping the Nuggets finish 54-28 and secure the No. 3 seed in the Western Conference before falling to the Minnesota Timberwolves in the first round of the playoffs.
According to Amick, only the Brooklyn Nets and Los Angeles Clippers currently possess enough salary-cap space to present Watson with the type of offer sheet he is seeking. The Clippers have shown legitimate interest, but their own restricted free agency involving Bennedict Mathurin complicates their flexibility. Brooklyn, meanwhile, remains one of the few teams capable of pursuing a young starting-caliber forward outright.
Even if another franchise submits an offer sheet, Denver has the contractual right to retain Watson by matching the deal. That leverage allows the Nuggets to control the process while also evaluating whether a sign-and-trade could produce assets that better fit their long-term roster plans.
Amick also reported that several teams have already expressed interest in acquiring Watson through a sign-and-trade arrangement. Such a move would allow Denver to avoid losing the forward for no return while giving Watson an opportunity to secure the contract and situation he prefers.
Watson’s steady progression suggests why Denver is reluctant to let him leave. After averaging just 3.3 points as a rookie, he improved to 6.7 points in 2023-24, 8.1 in 2024-25 and nearly doubled that production to 14.6 points this past season while developing into an efficient perimeter shooter and versatile defender.
