Cavaliers, James Harden Named Winners After Five-Team Peyton Watson Deal

Three of the four winners Kurt Helin listed in his breakdown of the five-team Peyton Watson trade for NBC Sports were tied to the Cleveland Cavaliers.

Cleveland filed the largest move of its offseason on Wednesday. The Cavaliers acquired Watson from Denver in a sign-and-trade, took Cam Whitmore from Washington, and picked up the draft rights to Ismael Kamagate, while Max Strus went to the LA Clippers and Denver received Cleveland's unprotected 2031 first-round pick, a 2032 Sacramento Kings second-rounder, and Julian Reese. Charlotte took Dennis Schroder and cash in a deal agreed to a week earlier and folded into this one. Washington took Tre Mann, a 2027 second-round pick, and cash. ESPN's Shams Charania reported it.

Watson signed for four years and $88 million, with a player option and a 7.5% trade kicker. The $22 million average exceeds the roughly $17.5 million Denver offered, which Helin said is just above the mid-level exception. Denver had extended Watson a qualifying offer in July.

Helin mentioned that Watson fills the gap at the three position between Cleveland's Harden-Mitchell backcourt and its Mobley-Allen frontcourt. He can play off the ball, create when needed, defend on the perimeter, and lead a second unit based on how Kenny Atkinson staggers the rotation. Last season, Watson shot 41.1% from three.

The cost means the Cavaliers no longer have a tradable first-round pick, and with Schroder and Strus being the last contracts available, they couldn't move them for a rotation player. Helin reported that Cleveland has exhausted its options.

"Is it good enough? It has to be," Helin wrote.

Watson averaged 14.6 points, 4.9 rebounds, and 2.1 assists over 54 games for Denver last season. He also blocked 1.1 shots in about 30 minutes per game. His season ended in early February with a hamstring strain, which sidelined him for the playoffs. In January, with Nikola Jokic out, he put up 21.9 points, 5.5 rebounds, and 3.0 assists on 49% shooting and 46.2% from 3, per Yahoo Sports. Helin wrote that the run further depleted an already-thin Nuggets roster. Denver drafted Watson 30th overall in 2022 after a season at UCLA, and he was on the 2023 title team.

Helin put Harden in the winners column for declining a $42.3 million player option in June and giving the front office the room to make the Watson move. His column posted before the new terms came out.

The Cavaliers re-signed Harden a day after the trade, on a three-year, $97 million deal with a player option for 2028-29 and a 15% trade kicker, and Chris Fedor of Cleveland.com put the first-year salary at roughly $30.5 million. Harden turns 37 on Aug. 26. His career earnings reach $511 million on the new contract, fourth in league history behind LeBron James, Kevin Durant, and Stephen Curry.

The sign-and-trade hard-caps Cleveland at the first apron for the season, a line that sits at $209,015,000, and Bobby Marks of ESPN put the Cavaliers roughly $29 million below it before Harden re-signed. Strus is 30 and headed into the last year of a $16.6 million contract.

Whitmore was the 20th overall pick in 2023 and is on a $5.5 million expiring deal. The Cavaliers have not decided what to do with him, according to Fedor, who reported they could look to trade him for a cheaper player first. Denver is expected to release Reese from his two-way contract.

Cleveland made it to the Eastern Conference finals last season, but New York swept the series in four games. The Cavaliers' regular season starts on October 22 against Philadelphia.