Peyton Watson is currently a restricted free agent, and his future with the Denver Nuggets is a massive question mark, especially with Denver being the only team set to be over the second apron heading into the 2026-27 season. This whole situation is getting wild because, according to NBA insider Marc Stein, the Cleveland Cavaliers are now firmly a “team to watch” for Watson’s services. They are even exploring some serious trade possibilities involving Dennis Schröder and Max Strus just to clear up enough cap space to make a four-year offer that could grab Watson’s attention.
Cleveland Is Ready To Burn It All Down For Watson
The Cavaliers are not messing around. They are reportedly looking to package Schröder and Strus, whose combined 2026-27 salaries hit $31.5 million, to make room. Cleveland is currently $35.5 million under the second apron, but that number doesn’t even factor in James Harden’s expected deal, which is coming. This is a big move for the Cavs, especially since Strus is on an expiring contract this season. Schröder’s deal has a $15.5 million salary in 2027-28, but only $4.4 million of that is guaranteed until next June. Stein noted that finding a team to absorb both contracts right now is “easier than done,” but the Cavs are clearly desperate. They lost Dean Wade, who was arguably their best wing defender, in free agency. Plus, they got absolutely swept by the New York Knicks in the conference finals last season, and they are trying to close that gap on the top teams in the Eastern Conference.
Watson’s Sticking Point Has Denver Sweating
So, why all this drama? Watson is believed to be looking for a deal similar to Christian Braun’s, who snagged a five-year, $125 million contract from the Nuggets last October. Denver’s current offer to Watson, per The Athletic’s Sam Amick, is $70 million over four years, with a team option on that final season. That’s a huge difference! Watson is coming off his best career season in 2025-26, averaging 14.6 points on 49.1 percent shooting (41.1 percent from three-point range), 4.9 rebounds, and 2.1 assists in 54 appearances. The guy clearly earned a raise. Other teams like the Los Angeles Clippers and Milwaukee Bucks are also reportedly in the mix for a potential sign-and-trade.
Despite all that interest, the Nuggets are still kind of in the driver’s seat. Most of the free-agent business is done, and the lack of financial flexibility across the NBA right now plays right into their hands. But what if they can’t make it work? If Denver and Watson can’t agree on a long-term deal and no sign-and-trade happens that the Nuggets like, Watson’s choices are stark: play on the one-year qualifying offer and hit unrestricted free agency next summer, or simply hold out into the season. The stakes are huge for both sides; will Denver pay up, or will another team swoop in and steal Watson right out from under their nose?
This article was created with AI assistance and published under Seattle On Tap’s editorial standards. See our Editorial Policy.
Originally reported by Bleacher Report.
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