The NBA’s restricted free agent market remains active in early August, with several notable players still waiting for clarity on their futures. Denver Nuggets wing Peyton Watson is among the players whose situations remain unresolved after a breakout 2025-26 season.
Watson averaged a career-high 14.6 points, 4.9 rebounds and 2.1 assists in 54 games last season while shooting 49.1 percent from the field and 41.1 percent from three-point range. He also started 40 games and recorded 1.1 blocks and 0.9 steals per game. However, a hamstring injury limited him during the season and kept him out for Denver’s entire postseason run.
Milwaukee Bucks Emerge as Peyton Watson’s Likely Destination
GettyPeyton Watson
The Milwaukee Bucks are viewed around the NBA as the most likely team to land Peyton Watson in a sign-and-trade, according to Brett Siegel of “ClutchPoints.”
The Bucks have a clear opening in their starting lineup for an athletic wing such as Watson. They also have a $25.4 million trade exception created by sending Giannis Antetokounmpo to the Miami Heat earlier this offseason, giving Milwaukee a potential mechanism to absorb salary in a sign-and-trade.
“Milwaukee is the team many around the league have pointed to as the most likely to land Watson in a sign-and-trade,” Siegel wrote for “ClutchPoints.”
The Bucks could also offer players who would fit Denver’s style. Siegel identified Jaime Jaquez Jr. and AJ Green as possibilities, particularly highlighting Green’s value as an off-ball shooter.
However, “ClutchPoints” confirmed that Milwaukee has not offered a first-round pick in its framework for Watson. That could be significant because Denver has been seeking a return that includes meaningful assets if it ultimately moves on from the 23-year-old.
“The biggest problem that the Nuggets face is potentially giving up Watson for nothing but draft picks because of their financial situation,” Siegel wrote.
Denver’s financial restrictions are a major factor in the situation. The Nuggets are approximately $17.6 million over the luxury tax threshold and $2 million above the second apron with 13 players on the roster. Their tax bill reportedly rose from $36 million to approximately $68 million after matching Spencer Jones’ two-year, $12 million offer sheet.
Watson accepting his $6.5 million qualifying offer would push Denver’s projected tax bill to approximately $112 million for the 2026-27 season.
Peyton Watson Has Multiple Suitors
Watson’s future is not limited to Milwaukee. ESPN’s Dave McMenamin identified the Atlanta Hawks, Cleveland Cavaliers, Los Angeles Clippers and Bucks as “serious candidates” to acquire the restricted free agent.
The Nuggets have offered Watson a five-year, $70 million contract, according to Tony Jones of The Athletic, but Watson has remained unsigned. ESPN’s Shams Charania also reported that Denver is open to sign-and-trade scenarios and would consider a package featuring one impact player and a first-round pick.
The Clippers have already indicated they would consider sending veteran wing Derrick Jones Jr. in a potential deal, according to “ClutchPoints.” Cleveland could include its 2031 first-round pick and a second-round selection, though salary restrictions complicate the scenario.
The Atlanta Hawks have also shown interest but have backed away because of Denver’s asking price and concerns about paying Watson more than $20 million annually.
Watson’s 2025-26 production explains the interest. He finished the season averaging 14.6 points, 4.9 rebounds, 2.1 assists, 1.1 blocks and 0.9 steals while shooting 41.1 percent from three-point range.
Denver scored 5.4 more points per 100 possessions when Watson was on the floor last season. His 1.9 percent block percentage also ranked in the 99th percentile among wing players, per Cleaning the Glass.
The Nuggets continue to face a difficult financial decision, while Watson’s preferred path is reportedly a sign-and-trade. For now, Milwaukee has emerged as the clearest potential destination, with its $25.4 million trade exception providing an important piece in a possible deal.
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