Nuggets Sign EuroLeague Defensive Star as Peyton Watson Decision Looms

The Denver Nuggets continued reshaping the roster around Nikola Jokić on Sunday by adding one of Europe’s most accomplished defenders.

EuroLeague Best Defender Alpha Diallo agreed to a one-year, fully guaranteed deal with Denver, his agents Jared Mucha and Javon Phillips of Excel Sports Management told ESPN’s Shams Charania. The contract is worth approximately $1.4 million, placing Diallo on the NBA rookie minimum for the 2026-27 season.

The 29-year-old wing will make his NBA debut after building an impressive résumé overseas, but his arrival also brings Denver’s increasingly complicated salary-cap situation into sharper focus.


Alpha Diallo Brings Elite Defense to Nuggets

AS Monaco's US forward #11 Alpha Diallo (R) runs with the ball during the French Ligue Nationale de Basket (LNB Elite) Pro A game four of the final between AS Monaco Basket and Paris Basketball, at the Gaston Medecin arena in Monaco on June 21, 2026. (Photo by Valery HACHE / AFP via Getty Images)

Getty Reigning EuroLeague Best Defender Alpha Diallo agreed to a one-year guaranteed contract with the Denver Nuggets after five standout seasons with AS Monaco.

Diallo spent the past five seasons with AS Monaco after beginning his professional career with Lavrio in Greece.

The former Providence standout went undrafted in 2020 after earning second-team All-Big East honors twice. He has since developed into one of the EuroLeague’s premier defensive players.

Diallo won the EuroLeague Best Defender award this past season after finishing third in the voting a year earlier. The honor is determined by the league’s head coaches.

In 42 EuroLeague appearances during the 2025-26 season, Diallo averaged 11.9 points, 4.4 rebounds, 1.4 assists and 1.4 steals in 27.9 minutes per game.

BasketNews’ Donatas Urbonas first reported the Nuggets’ interest in Diallo.

His 57 total steals led the EuroLeague. Diallo also ranked first among forwards in points allowed per possession at 0.844.

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Diallo helped Monaco win championships in France’s top domestic league in 2023, 2024 and 2026. He was also part of the club’s run to the 2025 EuroLeague Final Four.

For Denver, he represents a low-cost bet on a veteran wing whose defense, physicality and international experience could translate into a rotation role.


Nuggets Have Two Roster Spots Left to Fill

Diallo’s guaranteed contract gives the Nuggets 12 players on standard guaranteed deals.

That leaves Denver two players short of the NBA’s 14-man minimum roster requirement entering the regular season.

One opening could be filled with another veteran minimum signing. The larger decisions involve restricted free agents Peyton Watson and Spencer Jones.

Denver retains the right to match any offer sheet either player signs with another team. Watson is expected to command the more significant contract, and bringing him back at market value would certainly push the Nuggets above the second apron unless they first clear salary in a trade.

Jones’ next deal would add further pressure to an already crowded payroll.

Denver also has unsigned second-round pick Bryce Hopkins, creating another roster decision before training camp.


Second Apron Could Force Another Move

The Nuggets are projected to sit roughly $3 million below the second apron with only 12 players on guaranteed contracts.

That cushion is unlikely to survive the remainder of the offseason.

Adding another minimum contract would consume much of the available room. Re-signing Watson, matching an outside offer sheet or bringing back both Watson and Jones would likely push Denver beyond the second apron.

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Crossing that threshold would expose the Nuggets to the NBA’s most restrictive team-building rules, limiting trade flexibility and other roster mechanisms.

The front office could avoid that outcome by completing a salary-clearing trade before finalizing the roster.

For now, Denver has added another accomplished defender on a modest contract. But Diallo’s signing is unlikely to be the final move.

How the Nuggets handle Watson, Jones, Hopkins and the final two roster spots may determine whether Denver enters the season above the second apron—or makes another trade to stay below it.

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