The Denver Nuggets remain optimistic that Peyton Watson will be back next season despite growing interest from several teams in restricted free agency.
According to Tony Jones, Denver is confident it will retain the 23-year-old forward after allowing the restricted free-agent market to develop. “The Nuggets, according to those league sources, value Peyton Watson significantly,” Jones reported on The Athletic. “They feel they are in a good spot to retain his services and just need to let the restricted-free-agency process play out.”
That confidence comes as Watson has emerged as one of the franchise’s most important young players. During the 2025-26 season, he averaged career highs of 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks across 54 games, including 40 starts. He also shot an efficient 49.1% from the field and 41.1% from three-point range, establishing himself as a reliable two-way contributor alongside Denver’s veteran core.
Watson finished fourth on the Nuggets in scoring behind Nikola Jokic (27.7 points per game), Jamal Murray (25.4) and Aaron Gordon (16.2). His breakout campaign helped Denver compile a 54-28 record, good for third place in the Western Conference, before the team was eliminated by the Minnesota Timberwolves in six games during the first round of the playoffs.
Interest around the league has increased accordingly. Marc Stein previously reported that the Milwaukee Bucks are exploring a sign-and-trade for Watson, while the Los Angeles Clippers and Atlanta Hawks have also expressed interest in acquiring the versatile forward.
Milwaukee has entered the offseason focused on reshaping its roster after trading Giannis Antetokounmpo and Bobby Portis to the Miami Heat. The Bucks finished 32-50 last season and have already added Caris LeVert, re-signed Gary Trent Jr. to a four-year, $64 million contract, and brought in rookies Brayden Burries, Nate Ament, Bogoljub Markovic and Kam Jones as part of their rebuilding effort under new head coach Taylor Jenkins.
Denver, however, continues to hold considerable leverage because Watson is a restricted free agent. The Nuggets have consistently indicated they are prepared to match outside offer sheets, while also remaining open to a sign-and-trade only if negotiations fail to produce a long-term agreement.
That stance is reflected in the organization’s reported asking price. Jake Fischer has reported that Denver values Watson at a level comparable to the compensation Utah received for Walker Kessler in a sign-and-trade with the Los Angeles Lakers: two unprotected first-round picks and two first-round pick swaps after Kessler agreed to a four-year, $130 million contract.
