Rumor: Nuggets in Peyton Watson trade talks with Bucks, Cavs, Clippers

The Denver Nuggets are hopeful to have a healthy roster come playoff time, but their chances at an NBA Championship could be affected by what happens with Peyton Watson over the next two months.

A restricted free agent, Watson remains unsigned through early August with no end in sight to negotiations. While the Nuggets would like to retain Watson on a more team-friendly deal anywhere from $15-18 million annually, Watson and his camp are seeking a payday where he earns over $20 million a season annually.

No deal appears imminent, and the Nuggets are the only team in the dreaded second apron, which complicates their ability to get sign-and-trades done.

According to ESPN, the Nuggets remain in trade talks with the Cleveland Cavaliers, Milwaukee Bucks, and LA Clippers on a potential sign-and-trade involving Peyton Watson.

“The biggest question for the Nuggets right now surround restricted free agent Peyton Watson. This is still an outstanding issue that the Nuggets have right now and I’m told they are in active trade talks with multiple teams on a Peyton Watson sign-and-trade. That includes Cleveland [Cavaliers], Milwaukee [Bucks], and the Clippers. There are combinations of player packages, pick packages as well. So either they’re gonna trade him, or you could potentially have him back on a one-year, $6.5 million qualifying offer.”

Shams on Peyton Watson:

"They are in active trade talks with multiple teams on a Peyton Watson sign and trade. That includes Cleveland, Milwaukee, and the Clippers. There are combinations of player packages, pick packages as well. So either they're gonna trade him, or you could… pic.twitter.com/It0iLgdfpO

— Oh No He Didn't (@ohnohedidnt24) August 6, 2026

The Bucks have the easiest path towards landing Watson and handing him a role in which he’s looking for as a starter.

The Cleveland Cavaliers have also been looking for ways to upgrade their roster around Donovan Mitchell and James Harden, who remains un-signed to give the Cavs financial flexibility to make things happen.

Lastly, the LA Clippers also present Watson some opportunities for playing time and a payday he’s looking for, but they’re dealing with the NBA’s investigation into Kawhi Leonard and allegations of salary cap circumvention involving Aspiration. Additionally, Los Angeles is home for Peyton Watson, who grew up in Long Beach, California.

Watson had a breakout year for the Denver Nuggets last season, averaging 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals, and 1.1 blocks per game while shooting 49.1 percent from the field and 41.1 percent from three. The only issue is he played just 54 games for Denver, so there’s some sample size concerns with the “career year” label for Watson.

No matter how this goes, no deal is expected to take place any time soon as the NBA offseason is fully underway and its safe to assume both the Nuggets and Watson’s camp will maintain dialogue until September, when things are expected to heat up again.

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