The dust hasn't settled on the offseason for the Denver Nuggets as they have a big decision to make on restricted free agent Peyton Watson. 

The Nuggets are currently operating in the second apron after matching the offer sheet to Spencer Jones sent out by the Oklahoma City Thunder. With certain restrictions placed on them in terms of transactions, they need to get under the second apron before they can get the most out of a Watson deal if they were to make a sign-and-trade. 

Despite having a high payroll, the team has continued to make offseason moves, notably signing Marvin Bagley II as the new backup center to Nikola Jokic and Alpha Diallo, a standout defender from the EuroLeague. 

According to Marc Stein of the Stein Line newsletter, the Washington Wizards, Miami Heat, and Denver Nuggets are all pursuing DeRozan. 

Operating in the second apron restricts teams from signing buyout players who made more than the non-taxpayer mid-level exception during the regular season. DeRozan made $24.5 million last season, but he was waived and not bought out. That difference would allow the Nuggets to sign DeRozan, though they can only offer him the veteran's minimum. 

The Wizards and Heat both have mid-level exceptions to use, with Miami being able to offer around $6 million and the Wizards being able to offer around $15 million. If money is desired by DeRozan, the Nuggets are behind in the race. 

If DeRozan is looking for an opportunity to compete for a championship, he can do a lot worse than the Nuggets. They still have the core team that won the title in 2023 and have consistently been at the top of the Western Conference over the past five seasons. 

They have turned in disappointing playoff performances in the last three years, but Nikola Jokic always makes them a threat. 

DeRozan would replace some of the bench production the team lost with the departure of Tim Hardaway Jr, who was a Sixth Man of the Year candidate last season. DeRozan and Hardaway Jr are two completely different players, as DeRozan operates from the midrange and needs the ball in his hands more. 

He averaged 18.4 points, 2.9 rebounds, and 4.1 assists on 49% shooting from the field and 32% from three. He's still an offensive threat whenever he has the ball in his hands and can keep things moving when Jamal Murray and Jokic are off the floor. 

Defensively, the Nuggets have their issues, and DeRozan isn't going to help there. 

Overall, for the veteran's minimum, it would be worth the swing for Denver, but they need to figure out Watson's situation first.