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Nuggets Hold Firm as Peyton Watson’s Restricted Free Agency Stalls

Denver is letting the process play out because a looming second‑tax apron and high compensation demands are constraining its roster moves.

Overview

  • Peyton Watson remains unsigned as a restricted free agent, with Denver retaining the right to match any offer and showing no rush to complete a deal.
  • Multiple teams — the Milwaukee Bucks, LA Clippers and Atlanta Hawks — have been linked to Watson but lack cap room so any acquisition would likely require a sign‑and‑trade.
  • Denver has internally used a Walker Kessler‑level benchmark for compensation and is wary of pushing payroll closer to the NBA’s second tax apron because of steep penalties.
  • The Clippers’ pursuit has been slowed by a pause on their Kawhi Leonard trade tied to the NBA’s Aspiration investigation, reducing immediate market momentum for Watson.
  • The Nuggets have added low‑cost veterans (Tyus Jones, Alpha Diallo, Marvin Bagley III) and may explore trades of rotation players to create space, a move that would determine whether Denver matches an outside offer or trades Watson for assets.