Denver wants to keep Peyton Watson long term, though its growing salary concerns could create an opportunity for Dallas.
Peyton Watson had the type of breakout season that usually leads to a massive payday. The problem for Denver is figuring out whether it can realistically afford to give him one. If the Nuggets cannot, the Dallas Mavericks should position themselves aggressively to pursue him via free agency this offseason.
Watson, 23, averaged 14.6 points, 4.9 rebounds, 2.1 assists, 0.9 steals and 1.1 blocks per game this season while shooting 49.1% from the field and 41.1% from 3 point range across 54 games. He started 40 of those contests before a hamstring strain ended his regular season early.
Denver clearly missed him during the playoffs. The Nuggets lost to Minnesota in six games during the first round, and Watson’s absence removed one of the roster’s most versatile defenders and perimeter athletes from the rotation.
At 6 foot 7, Watson has developed into exactly the type of wing every NBA team values. He can defend multiple positions, knock down perimeter shots and contribute offensively without needing high usage. Those players are difficult to acquire, especially when they are still only 23 years old.
The fit in Dallas makes a lot of sense. Watson would immediately strengthen the Mavericks’ wing rotation and could function either as a starter or a high level sixth man depending on how the roster develops around Cooper Flagg and Kyrie Irving. His ability to defend elite perimeter scorers while spacing the floor offensively would address several of Dallas’ long term needs at once.
More importantly, Watson aligns perfectly with the timeline Dallas is building toward. He is young enough to grow alongside Flagg over the next several seasons instead of serving as a short term veteran addition. A defensive core built around Watson and Flagg would give Dallas tremendous length, athleticism and versatility moving forward.
According to NBA insider Jake Fischer, retaining Watson is Denver’s top offseason priority. The Nuggets hold full Bird Rights, meaning they can match any outside offer. However, their salary situation creates real complications.
Denver already has more than $203 million committed to eight players for the 2026-27 season, pushing the organization deep into luxury tax territory. Rival executives reportedly believe Watson’s next contract could exceed the five year, $125 million extension Christian Braun recently signed. Fischer also reported that some around the league expect Denver could explore moving Cameron Johnson simply to create enough payroll flexibility to retain Watson.
That financial pressure creates an opportunity Dallas should not ignore.
Watson is entering the exact phase of his career where players often make another significant leap, and the Mavericks rarely get opportunities to pursue two way wings with this combination of age, production and upside. If Denver’s financial limitations force difficult roster decisions, Dallas should be ready to act quickly.
