Denver moved Peyton Watson for picks and now sits above the second apron with 13 players, which leaves almost no money and very little margin for error.
Denver ended a long standoff on Wednesday night by agreeing to sign and trade restricted free agent Peyton Watson to Cleveland in a five-team deal that also moves Max Strus to the Clippers.
The Nuggets take back an unprotected 2031 Cavaliers first-round pick, a 2032 Kings second-rounder and two-way player Julian Reese, whom they plan to waive, and Watson will sign a four-year contract worth 88 million dollars with the Cavaliers.
That is a real player gone for future money, and it happened because Denver could not pay him.
The team is the only one above the 221.7 million dollar second apron, sitting about 2 million over it with 13 players on standard contracts and two spots to fill.
What Denver Just Lost
Watson averaged 14.6 points, 4.9 rebounds and 2.1 assists in 54 games last season while shooting 49.1 percent from the field and 41.1 percent from three.
That is a starting-caliber wing at 23 years old, and he is not replaceable with the money Denver has left, which is the minimum.
Tim Hardaway Jr. also left for Miami earlier this offseason, so the bench has lost a lot of scoring in one summer.
Nikola Jokic is taking more than 35 percent of the cap, Jamal Murray is above 50 million dollars, and Aaron Gordon, Cameron Johnson and Christian Braun are all on big deals of their own.
There was never a version of this where Watson stayed.
The DeRozan Question
NBA insider Chris Haynes reported that Denver has turned its attention to DeMar DeRozan, who is a free agent after being waived by Sacramento.
"The Denver Nuggets are pivoting and have their eyes directed on six-time All-Star DeMar DeRozan, who remains a free agent in demand for contenders," Haynes wrote on X, as quoted by BasketballNews.
DeRozan averaged 18.4 points and 4.1 assists in 77 games last season on 49.7 percent shooting, and he has missed ten or fewer games in each of the last five years.
Miami and Washington are also interested and both can offer more than the minimum, and BasketballNews relayed reports that DeRozan is seeking a multiyear deal paying him eight to ten million dollars a year.
Denver cannot get near that.
If he takes the minimum to chase a ring with Jokic, it is the best value signing of the summer, and the board has already flagged him as the target.
What I Would Actually Do
Chase DeRozan hard, but do not leave the second spot waiting on him.
Bruce Brown is still unsigned and knows this system, and a minimum deal for a wing who defends multiple positions solves more nights than a 37-year-old scorer does.
My order would be Brown first, because he is realistic, then DeRozan if the money elsewhere disappears in September.
The other move worth making is getting off Zeke Nnaji's 7.5 million dollar contract, even if it costs one of the picks Denver just collected, because dropping under the apron unlocks everything else.
Denver still builds around the best player alive, and Jamal Murray finding his All-Star form again would do more than any last roster spot can.
The margin is thin, and the way this standoff ended shows how little room is left.
