Sep 3, 2026 1:00 PM

Peyton Watson acknowledges Denver's salary cap struggles.

This offseason, the Denver Nuggets were in negotiations with one of the most highly sought-after restricted free agents in the NBA, Peyton Watson. Watson and the Nuggets could not get a deal done, which led to him being traded to the Cleveland Cavaliers. 

Upon arriving in Cleveland, Peyton Watson signed a four-year, $88 million deal with the Cavaliers. Watson recently spoke out about the negotiations between his camp and Denver, and he blamed the franchise’s tight salary cap situation for delayed talks. 

The Nuggets went into the offseason as one of the highest payrolls in the NBA, and they were close to paying the luxury tax penalty. 

Ron Chenoy-Imagn ImagesRon Chenoy-Imagn Images

“Everybody was aware of them facing the tax bill, and just kind of the way things shook out at the beginning with free agency,” Watson said. 

Watson also mentioned that teams around the league tend to shy away from heavily pursuing restricted free agents because of their value and what it takes to acquire one. 

For Watson, his last season with the Denver Nuggets was crucial in earning his new deal. He was going into the last season of his contract and was originally set to become an unrestricted free agent. 

The Nuggets decided to tender a qualifying offer to him before ultimately trading him away. Watson finished last season averaging over 15 points per game in the increased role he had in the rotation. 

Isaiah J. Downing-Imagn ImagesIsaiah J. Downing-Imagn Images

He was limited in the amount of action he got throughout the whole season, as he only played in 54 games, but it was enough to land him a big contract. Another factor that played a role in Watson’s new deal in Cleveland is his age. 

He will be 24 years old when the season begins, and the Cavaliers' front office may be thinking the best is yet to come for him. In terms of how he fits in Cleveland, this could be a great match for him. 

The Cavaliers are a team that likes to play with intensity on both ends of the floor, and Watson adds to this roster. The biggest concern is likely injuries, but if he can stay healthy come playoff time, the Cavaliers could be in good shape. 

Ron Chenoy-Imagn ImagesRon Chenoy-Imagn Images

The Nuggets and Peyton Watson seemed to have mutually parted ways, and with the Nuggets adding DeMar DeRozan shortly after trading Watson, this could be something they were bracing for.  

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