The Denver Nuggets have made one thing abundantly clear during Peyton Watson’s restricted free agency.
If another team wants the 23-year-old forward, it will have to convince Denver that losing him is worth reshaping the franchise’s future.
NBA insider Jake Fischer reported Friday in The Stein Line that the Nuggets have set an asking price that has effectively stalled sign-and-trade discussions with Watson’s outside suitors.
“Whether it’s the Hawks or the Clippers or any other suitor, sources maintain that the Nuggets are seeking compensation on par with what Utah received from the Lakers in their recent sign-and-trade swap that made Walker Kessler a Laker,” Fischer wrote.
That trade brought Utah two first-round picks and two first-round pick swaps, one of the richest returns of the offseason.
According to Fischer, neither the Los Angeles Clippers nor the Atlanta Hawks have been willing to meet that valuation.
The stance is notable because Denver itself faces a difficult financial decision.
Unless the Nuggets create additional salary flexibility through separate trades, re-signing Watson is expected to push the franchise above the NBA’s punitive second apron.
Denver’s willingness to risk those financial penalties underscores just how highly the organization values one of its fastest-rising young players.
Nuggets Appear Prepared to Pay for Watson
Getty Nikola Jokić and Peyton Watson of the Denver Nuggets speak during a timeout during the fourth quarter of the game against the Houston Rockets at Toyota Center on November 21, 2025 in Houston, Texas.
The Nuggets have never treated Watson like a player they were eager to move.
Negotiations with Watson’s representatives have focused on finding common ground on a new contract rather than determining whether the two sides want to remain together.
Earlier this week, Fischer reported that Watson’s camp viewed Christian Braun’s five-year, $125 million extension as a logical benchmark during negotiations.
Denver, meanwhile, has been comfortable matching offers in the neighborhood of $30 million annually or less.
Fischer has repeatedly described the relationship between the two sides as mutually beneficial.
“Peyton Watson wants to be in Denver,” Fischer said earlier this week. “Denver wants him to stick around.”
That mutual interest explains why the Nuggets have shown little urgency to lower their demands in trade discussions.
If Denver ultimately retains Watson, the front office can still explore salary-clearing trades elsewhere on the roster to lessen or avoid second-apron consequences.
Until then, the Nuggets are negotiating from a position of strength.
Clippers and Hawks Face the Same Obstacle
The Clippers have emerged as Watson’s most aggressive outside suitor, with Fischer reporting they have shown interest in a contract worth more than $25 million annually.
The Atlanta Hawks have also entered the race in recent days, giving Watson another potential destination should negotiations with Denver break down.
Any deal, however, would require the Nuggets’ cooperation because Watson remains a restricted free agent.
For now, Fischer reports Denver’s valuation has been the common obstacle for both teams.
The Clippers are even becoming more likely to pivot toward re-signing restricted free agent Bennedict Mathurin rather than continue pursuing Watson, Fischer reported.
Watson’s breakout season helps explain Denver’s reluctance to compromise.
He averaged 14.6 points, 4.9 rebounds, 2.1 assists and 1.1 blocks while developing into one of the Nuggets’ premier perimeter defenders.
When Nikola Jokić missed time late in the season with a hyperextended knee, Watson elevated his production to 22.5 points, 5.6 rebounds, 2.8 assists, 1.1 steals and 1.4 blocks over a 17-game stretch.
For a franchise still building around Jokić’s championship window, those performances appear to have changed Watson’s status.
The Nuggets aren’t negotiating as though they’re trying to move him.
They’re negotiating as though they’re perfectly comfortable keeping him—even if doing so ultimately requires navigating the financial constraints of the second apron.
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