Watson Negotiations Stall as Nuggets’ Offers Fall Well Short of Player’s Demand

Overview

• Multiple outlets report the Nuggets’ top proposals for restricted free agent Peyton Watson sit around $16–18 million per year while Watson’s camp is seeking roughly $28 million per year.
• Denver’s move above the second salary-cap apron has sharply limited the team’s flexibility by preventing it from taking back meaningful salary in sign-and-trades and by making higher offers far more costly in luxury tax penalties.
• Teams with interest, including Milwaukee, the Clippers and the Hawks, lack clear cap room and have been unwilling to meet Denver’s earlier compensation demands, leaving sign-and-trade options thin and talks stalled.
• With a long-term deal unlikely, Watson is seriously considering the one-year qualifying offer (reported at about $6.5 million) that would let him play one season and become an unrestricted free agent in 2027, a choice that carries both financial risk and potential leverage.
• Watson has used the offseason to add weight and muscle, reporting a jump to about 220 pounds, and the outcome of these talks could shape how top restricted free agents approach future negotiations and how Denver manages its roster under heavy tax pressure.