Bleacher Report Floats 3-Team Peyton Watson Trade for Cavaliers

Bleacher Report salary-cap writer Eric Pincus published a hypothetical three-team trade Wednesday involving Denver Nuggets restricted free agent Peyton Watson and the Cleveland Cavaliers.

The Memphis Grizzlies are the third team in Pincus' idea, taking on salary to help make the deal work. This is Pincus' own trade construction. Cleveland, Denver, and Memphis have not been reported as discussing it.

Cleveland would get Watson. Denver would receive GG Jackson II, a protected 2030 first-round pick from the Cavaliers, an $11.6 million trade exception generated by Watson, and a $5.1 million exception for Zeke Nnaji.

Memphis would take Max Strus, Nnaji, three second-round picks, $3.5 million each from Cleveland and Denver, and a $2.4 million trade exception.

Watson is not a new name for Cleveland. 

Marc Stein reported Aug. 12 that the Cavaliers were a "team to watch" for Watson. Cleveland had explored ways to move Dennis Schroder and Strus to create room for a four-year offer, according to Stein.

Schroder and Strus were set to make a combined $31.5 million in 2026-27, per Spotrac.

Cleveland moved one of those contracts two days later. The Cavaliers sent Schroder and cash to Charlotte for Tre Mann. Schroder is owed $14.8 million this season, while Mann is owed $8 million.

Watson played 54 games last season and averaged 14.6 points, 4.9 rebounds, and 2.1 assists. He shot 49.1% from the field. From 3-point range, he made 41.1% of his 3.6 attempts per game.

He is 23 years old and stands 6-foot-8.

Denver has offered Watson four years and $70 million with a team option for the final season, Sam Amick of The Athletic reported.

Stein reported that Watson wants an average annual salary closer to the five-year, $125 million extension Christian Braun signed with Denver last October.

Pincus used a four-year, $100 million contract in his trade idea. Watson would make $23.3 million in the first season.

Pincus also accounted for James Harden in the proposal.

Harden would make about $22.5 million in the first year of a three-year, $70.9 million contract. Pincus wrote that Cleveland has close to $47 million available for Harden and Watson combined in 2026-27.

The first-apron hard cap is $221.7 million.

Pincus gave Cleveland's 2030 first-round pick protection in the framework, with top five listed as one possibility. If the pick stayed with Cleveland in 2030, Denver would instead receive the Cavaliers' unprotected 2031 first-round pick.

Watson would be acquired using an expanded traded player exception created by Strus. Using that mechanism would also hard-cap Cleveland at the first apron.

Harden turned down a $42.3 million player option June 29. He still has not signed a new contract.

Jake Fischer reported this month that Cleveland could pull back from sign-and-trade talks involving Watson and Jonathan Kuminga. Harden's camp has been waiting for a resolution.

There has already been turnover around Cleveland's rotation this summer. Dean Wade went to Philadelphia. Keon Ellis signed with Brooklyn, while Larry Nance Jr. landed in Indiana.

The Cavaliers signed Mario Hezonja and re-signed Thomas Bryant.

Some changes occurred before the offseason. De'Andre Hunter moved to Sacramento before the February trade deadline. On Feb. 4, Cleveland acquired Harden from the Los Angeles Clippers, returning Darius Garland and a second-round pick to Los Angeles.

Cleveland finished with a 52-30 record, placing fourth in the Eastern Conference. The Cavaliers required seven games to defeat Toronto in the first round.

They trailed Detroit 2-0 in the second round but ultimately won the series in seven games. Subsequently, New York swept Cleveland in the Eastern Conference finals.

Cleveland had not reached the conference finals since 2018.

Kenny Atkinson is set to return for his third season as the Cavaliers' head coach. NBA training camps are scheduled to start in late September.