The Nuggets will have a lot of competition.
Peyton Watson is entering restricted free agency after a breakout season in Denver, and the Nuggets are already feeling pressure from teams lining up to make a play for their 23-year-old wing.
Denver finished 54-28 and earned the third seed in the West, but a first-round exit against the Timberwolves in six games and a payroll north of $200 million have turned Watson's situation into the biggest decision of the summer.
He averaged 14.6 points, 4.9 rebounds, 2.1 assists, and 1.1 blocks per game while shooting 49.1 percent from the field and 41.1 percent from three across 54 games before a hamstring injury ended his season in early February.
ESPN's Bobby Marks has projected a four-year, $90 million deal for Watson, and while the Nuggets have publicly said they want him back, Denver already has over $200 million committed to eight players for next season.
Retaining Watson could mean moving Christian Braun or Cameron Johnson to stay below the second apron, and that financial pressure is exactly what opens the door for other teams to step in.
Los Angeles Lakers
The Lakers finished 53-29 and are expected to have roughly $55 million in cap space this summer.
Both Jake Fischer and Brian Windhorst have reported that Watson is a priority target, and the team expressed trade interest before the February deadline.
Watson has deep California ties as a product of Beverly Hills, Long Beach Poly, and UCLA, and his breakout shooting splits fit naturally alongside Luka Doncic and Austin Reaves.
The Lakers have the flexibility and motivation to send an offer sheet that puts real pressure on Denver.
Chicago Bulls
Chicago went just 31-51 this past season and is right in the middle of an organizational overhaul with new leadership and a head coaching search underway.
The Bulls are projected to carry the most cap room in the league at roughly $58.4 million, which gives them the spending power to make an aggressive play for Watson.
They also showed trade interest before the deadline, which tells Denver this is not a team just looking around.
Watson's age and two-way ceiling fit a rebuild that could start competing sooner than most expect.
Brooklyn Nets
The Nets won just 20 games and are projected to have around $47.9 million in cap room this summer, but the personal connection is what makes Brooklyn a real threat.
Former Nuggets teammate Michael Porter Jr., who was traded there last summer and posted 24.2 points and 7.1 rebounds per game before his own season-ending injury, publicly recruited Watson on Instagram with the comment "See you in Brooklyn soon man."
The Nets also do not control their own first-round pick in 2027, which gives them incentive to spend now and try to compete rather than sink through another losing season.
Denver holds restricted free agent rights and can match any offer Watson receives, but the cost of doing so and the roster moves needed to make it work are what will define the Nuggets' summer.
