The Denver Nuggets came into the offseason with a big question that needed to be answered: How would they navigate their cap situation with Peyton Watson needing an extension as a restricted free agent?

It was thought that the team might trade Christian Braun or Cameron Johnson to make way for Watson’s new deal. There were even whispers that they could trade Jamal Murray or Aaron Gordon to really shake things up.

Nuggets executive Josh Kroenke said everything short of trading Nikola Jokic was on the table, leading to plenty of online speculation over what could happen with the team after a disappointing first-round playoff exit.

While fans theorized who could end up where from the Nuggets, the team ultimately decided to keep their starting roster intact, instead trading Watson to the Cleveland Cavaliers in exchange for a first-round pick in 2031 and a second-round pick in 2032 via the Sacramento Kings.

Weeks before trading Watson, the Nuggets re-signed Spencer Jones, a restricted free agent, matching the offer sheet Jones signed courtesy of the Oklahoma City Thunder.

By matching the offer for Jones, the Nuggets put themselves into the second apron, limiting their flexibility in trading Watson.

According to Brian Windhorst of ESPN, there was a threshold for Watson’s contract where the Nuggets preferred to keep Camerson Johnson and Spencer Jones over Watson.

Watson was reportedly seeking $25 to $30 million in the offseason, while Denver reportedly offered him a four-year, $70 million deal, which works out to $17.5 million annually.

Watson signed a four-year, $88 million deal with the Cavaliers upon being traded.

Watson had a breakout season last year and earned himself a new contract, but losing two players and getting a return that would’ve been similar or worse than they got to Watson would’ve been a hard sell to fans.

Denver was in a tough financial spot with Christian Braun’s five-year, $125 million deal kicking in. The preference may have been to trade Braun, but his value is at an all-time low after a down season and his new contract beginning.

They would’ve lost Jones to the Thunder for nothing and may not have gotten a first-round pick for Johnson.

Retaining Johnson, who played well after a slow start and was part of a very successful regular season starting lineup, and Jones, who provides spacing and defense and was one of their best players in the playoffs, was the correct call for Denver as they needed depth and couldn’t risk another Braun situation by overpaying Watson.