How are the Nuggets looking financially after trading Peyton Watson?
The Denver Nuggets have had a busy offseason, despite having their financial hands tied for much of it.
Coming into the offseason, executive Josh Kroenke said that everything was on the table short of trading Nikola Jokic. Instead of making any big moves, the team lost Jonas Valanciunas and Tim Hardaway Jr, but added Marvin Bagley III and Alpha Diallo.
They also re-signed Tyus Jones.
The offseason escalated when they matched the offer sheet presented by the Oklahoma City Thunder for restricted free agent Spencer Jones. In opting to match the offer sheet, which was a two-year, $12 million deal, the Nuggets went into the second apron.
Where Things Stand
After trading Peyton Watson and getting back two draft picks by no players, the Nuggets were $2 million into the second apron.
Though they were restricted by the second apron, they could still offer a veteran’s minimum contract, which they utilized to sign DeMar DeRozan.
In signing DeRozan, they are now $4.9 million into the second apron.
They have until the trade deadline to get under the second apron before they are hit with draft penalties, but there are still trade restrictions that could make things difficult moving forward if they don’t get under the apron.
In a bit of good news, the Peyton Watson trade netted them a 2031 first-round pick, now giving them one tradeable first-round pick.
The Peyton Watson Trade And What’s Next
Denver’s biggest offseason decision was going to come down to how they handle the restricted free agency of Peyton Watson. He reportedly wanted $25 to $30 million, which would’ve cost Denver even more in luxury tax money. Signing Watson would’ve likely meant a trade or two to free up the money, not only to get under the second apron, but to decrease their tax bill.
The two names rumored to be traded were Christian Braun, who is set to begin a five-year, $125 million deal, and Cameron Johnson, who is in the last year of a deal that pays him $23 million.
Either of those names could’ve been dealt to make way for Watson’s new deal.
Now, Denver can keep its starting lineup from last season intact, but will need to make at least one more move to get under the second apron.
The most likely trade candidate is Zeke Nnaji, who signed a four-year, $32 million deal that began in 2024. He has found himself out of the rotation in recent seasons and still has one year plus a player option left on his deal.
