Peyton Watson is emerging as one of the most sought-after restricted free agents next summer, and league sources indicate the Denver Nuggets will struggle to match the market.
Watson and Denver did not agree to a contract extension before the 2025-26 season, avoiding the same “poison pill” provisions that applied to Christian Braun, according to Bennett Durando of the DenverPost.
The 23-year-old guard is on pace for strong performances during his contract year, averaging 10.5 points, 4.8 rebounds and 1.6 assists over 26 games while shooting 50.3% from the field and 39.1% from three games. His efficiency has made him an increasingly important asset on a Nuggets roster that is currently 20-6 and atop the Western Conference standings.
Watson has steadily improved each season in Denver. After limited minutes in his rookie campaign, he is now averaging 26.2 minutes per game, contributing both offensively and defensively, while fitting into a team led by Nikola Jokic and Jamal Murray.
Denver’s front office faces a dilemma as Watson’s market value is expected to exceed the Nuggets’ current salary flexibility. Restricted free agency rules give Denver the right to match offers, but sources suggest the team could be priced out of a competitive bidding environment if multiple suitors pursue the guard.
The Nuggets have managed to maintain a career-high record without an extension, but retaining Watson could become a central priority this offseason. Denver may need to restructure contracts or free up cap space to remain competitive in the bidding process.
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