The Denver Nuggets made only one contract offer to Peyton Watson during his restricted free agency, according to Bennett Durando of The Denver Post, before ultimately trading the young forward to the Cleveland Cavaliers.
Durando reported that Denver offered Watson a four-year contract with an ascending salary in the range of $18 million per year and a team option. The proposal was immediately rejected, and although the Nuggets kept the offer available, they never returned with an improved contract.
“Claiming that organizational trust in Watson had taken a hit, the Nuggets drew a line in the sand at the beginning of free agency,” Durando reported. “They offered a four-year contract with an ascending salary in the range of $18 million per year, with a team option, multiple league sources said.”
The negotiations were complicated by differing views of Watson’s standing within the organization. According to Durando, Denver had concerns about dependability and maturity, while Watson’s side interpreted those concerns as disrespect.
The impasse lasted seven weeks before the Nuggets eventually moved Watson in a five-team sign-and-trade with the Cavaliers on August 19. Denver received an unprotected 2031 first-round pick and a 2032 second-round pick as part of the deal.
Watson had developed into an important rotation player during the 2025-26 season. The 23-year-old averaged 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks in 54 games, including 40 starts, while shooting 49.1% from the field and 41.1% from three-point range.
His three-point shooting represented a particularly significant development. Watson made 1.5 threes per game on 41.1% shooting, giving Denver a productive perimeter option who could also contribute defensively.
Watson ranked fourth on the Nuggets in scoring behind Nikola Jokic, Jamal Murray and Aaron Gordon. Jokic averaged 27.7 points, 12.9 rebounds and 10.7 assists while earning first-team All-NBA honors, while Murray posted 25.4 points and 7.1 assists per game.
Denver finished the regular season 54-28 but was eliminated by the Minnesota Timberwolves in the first round of the playoffs. The offseason decision to move Watson reflected the financial constraints surrounding a roster built around Jokic and Murray.
The Nuggets had already committed significant money to Christian Braun, who signed a five-year, $125 million extension. With Denver operating under second-apron restrictions, retaining every young player at his preferred price was increasingly difficult.
The front office ultimately prioritized Braun while refusing to increase its offer to Watson. Denver now enters the 2026-27 season without a homegrown player who had become one of its most promising two-way contributors.
