Denver believes it can keep Peyton Watson without a fight, and the Hawks' interest is tangled up in Atlanta's own unresolved Jonathan Kuminga situation.
The Denver Nuggets plan to keep restricted free agent Peyton Watson by matching any offer sheet he signs, according to The Athletic's Tony Jones.
The Atlanta Hawks remain linked, along with the Milwaukee Bucks and LA Clippers, on a potential sign-and-trade for Watson. Denver's stance hasn't deterred these teams from maintaining interest in a possible move.
The Hawks did not exercise Kuminga's $24.3M team option on June 29, making him a free agent. They acquired him in a trade that sent Kristaps Porziņģis to Golden State and received Kuminga and Buddy Hield.
Michael Scotto from HoopsHype said declining the option was a strategic move to preserve Atlanta's non-taxpayer mid-level exception and Kuminga's Bird rights, allowing potential sign-and-trade interest from Cleveland and Milwaukee.
Watson gives Hawks president of basketball operations Onsi Saleh a fallback plan if Kuminga ends up elsewhere. The Stein Line's Jake Fischer reported Atlanta has shown fresh interest in Watson, who'd fit alongside Jalen Johnson, Dyson Daniels, Nickeil Alexander-Walker and Onyeka Okongwu as another switchable, athletic wing on Hawks coach Quin Snyder's roster.
Fischer has reported the Nuggets are seeking compensation in line with what the Utah Jazz got from the LA Lakers in this offseason's Walker Kessler sign-and-trade — two unprotected first-round picks and two first-round swaps. The Clippers prioritize re-signing Bennedict Mathurin over meeting Denver's demands for Watson because of Watson's high price tag.
Atlanta has a $25 million trade exception from last summer's Dejounte Murray trade, which the Hawks are exploring.
Watson averaged 14.6 points, 4.9 rebounds, and 2.1 assists over 54 games, shooting 49.1% overall and 41.1% on three-pointers. He missed games in February and April due to a hamstring strain, exposing Denver's limited athleticism in their first-round loss to the Timberwolves. The 23-year-old, drafted 30th from UCLA by Denver in 2022, seeks at least $25 million annually.
Denver is understandably reluctant to trade Watson, given how important he is to the team's roster and the limited options to replace him. The Nuggets pay near-max to Nikola Jokić, Jamal Murray, and Aaron Gordon. They extended Christian Braun with a five-year, $125M deal, but injuries and inconsistency hurt his performance. They traded Michael Porter Jr. to the Nets for Cam Johnson, who underperformed, and lost Tim Hardaway Jr. to the Heat on a one-year, $6.5M deal.
The NBA's second tax apron is $222 million for 2026-27. Denver may be at or near this cap, limiting roster changes but still needing to improve depth. They plan to keep Watson via extension or offer sheet.
Atlanta's front office has been patient during free agency. If Denver doesn't lower its asking price, Kuminga is the most realistic option for the Hawks to maintain wing depth before training camp.
