The Denver Nuggets made it clear at the beginning of the offseason that Peyton Watson was going to be their top priority in free agency. 

Watson was homegrown talent who came up in the Nuggets' system and had a breakout 2025-26 season where he proved that he wasn't just a great role player, but that he had all of the trappings of a starter who was just beginning to scratch the surface of his potential. 

Outwardly declaring that you're interested in signing one of your own former players is one thing, but without the appropriate level of effort to actually make such a deal happen, all the Nuggets were doing was paying lip service to a move that was guaranteed to be a popular move within the fanbase. 

Ultimately, the Nuggets didn't end up signing Watson to a long-term deal, instead working out a sign-and-trade deal that sent Watson to the Cleveland Cavaliers. 

A recent report from the Denver Post revealed details about Watson's entire offseason process, including details surrounding the Nuggets' asking prices from various teams for a potential sign-and-trade as well as what the Nuggets themselves were doing to try and entice Watson to stay. 

Per the report, the Nuggets were firm about their initial offer to Watson and didn't often waver from it , though they didn't make much of an effort to negotiate on an offer either.

“Claiming that organizational trust in Watson had taken a hit, the Nuggets drew a line in the sand at the beginning of free agency," the report read. "They offered a four-year contract with an ascending salary in the range of $18 million per year, with a team option... The initial offer was turned down immediately. The Nuggets kept it on the table but never returned with a new one.”

The idea that organizational trust in Watson had degraded is a perplexing detail and says more about the Nuggets and their perspective on their own organization than it does about Watson.

With Watson being a talent that was developed within the Nuggets; own organization, they could have expected Watson to be willing to entertain a hometown discount rather than try a full-out aggressive pursuit of his own free agency. 

That clearly wasn't going to be Watson's intention. As reports continued to pile up about Watson's asking price, it became clear that he was interested in far more than what the Nuggets were going to be capable of offering him considering their own limits imposed by the second apron and the already pricey contracts that they have on their books. 

The Nuggets also became aware of that fact, hence why they never approached Watson with a better offer and instead pivoted to working out a deal for a sign-and-trade so that they could get some value out of losing him.

Denver Nuggets guard Peyton Watson (8) shoots past Brooklyn Nets center Day'ron Sharpe (20) in the second quarter at Barclays Center. Wendell Cruz-Imagn Images

Denver Nuggets guard Peyton Watson (8) looks to drive on Cleveland Cavaliers center Jarrett Allen (31) during the first half at Rocket Arena. David Dermer-Imagn Images