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Meanwhile, the Cavaliers have recently called to express interest in a sign-and-trade for Denver Nuggets restricted free-agent forward Peyton Watson, league sources told HoopsHype. The newfound interest in Watson comes on the heels of Cleveland also being in the mix for free agent forward Jonathan Kuminga in sign-and-trade discussions. More on both forwards to come in separate sections below.
The Denver Nuggets remain interested in retaining restricted free agent forward Peyton Watson amid sign-and-trade interest from the Milwaukee Bucks, Cleveland Cavaliers, Atlanta Hawks, and Los Angeles Clippers. Denver’s price tag in any sign-and-trade scenario has shifted to at least one first-round pick and one notable player, per multiple reports, and confirmed by HoopsHype.
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While the Bucks haven’t offered a first-round pick yet, they’d consider absorbing Nuggets forward Zeke Nnaji as part of a Watson sign-and-trade, HoopsHype has learned. Nnaji is owed a combined $14.93 million with two seasons remaining on his contract, including a player option for the 2027-28 season.
Sources say the Cavs have expressed interest in free agents DeMar DeRozan, Peyton Watson and Jonathan Kuminga. DeRozan, the 17-year NBA veteran, was waived by Sacramento a little more than three weeks ago and has been viewed leaguewide as a possible low-cost target for any team that missed on LeBron. There’s an argument that DeRozan is the best available free agent.
Oh No He Didn't: Ramona Shelburne on James Harden and the Cavs: "I think that could happen relatively soon. The question is gonna be is it a two year deal, a three year deal, what the structure looks like is gonna determine what the money looks like. But the Cavs are still poking around with Peyton Watson and I think that's why James has given them a lot of room to negotiate"
Oh No He Didn't: Shams on Peyton Watson negotiations with the Nuggets: "In a potential sign and trade, the Nuggets initially had set a price this off season of similar to the Walker Kessler deal of two first and two swaps in any potential deal. Now that price, my understanding is a really good high level player as well as a first round pick"
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The Nuggets have offered Watson, a restricted free agent, $70 million over five seasons, according to league sources who spoke to The Athletic on condition of anonymity because the deal is not final. The Milwaukee Bucks, Atlanta Hawks and Los Angeles Clippers are also interested in acquiring Watson through potential sign-and-trade opportunities, the league sources said.
Thus begins a balancing act for the Nuggets, who have long stated they highly value Watson, and for Watson, who is in line for a second contract. The Nuggets’ payroll is in the second apron because they decided to match Oklahoma City’s offer sheet for Jones. Denver is attempting to move a contract or two to get back under the second apron and clear enough money to retain Watson, the league sources said.
League sources say Watson, like Detroit's Jalen Duren, has been weighing the unappealing prospect of playing out the 2026-27 season on a qualifying offer with the intent to become an unrestricted free agent next summer. Actually doing so, mind you, means leaving millions on the table.
Shams Charania: By matching Jones' sheet, the Nuggets face a $32 million increase in current luxury taxes ($36M to $68M) and enter the second apron. They are deep in tax bills but could shed money via trades in season. Next Denver order of business: Navigate retaining RFA Peyton Watson while the Hawks, Bucks and Clippers pursue him.
