How Much Should Nuggets Be Willing to Pay Peyton Watson in Free Agency?

The Denver Nuggets are going into an important offseason to upgrade their roster in an attempt to bring them back to championship contention. The Nuggets have not made the Western Conference Finals since 2023, the year they won the NBA Championship. 

The franchise has kept veteran players to help them get back into position to win a championship, but it's clear the team may need to get younger in order to be a formidable opponent for years to come. 

One young player had a breakout season for Denver this past year, and with his contract up this summer, it will be a priority to bring him back. Peyton Watson, 23, is a young guard for Denver who will be a free agent this season, but the Nuggets will want to bring him back after a career year. 

In 2025-2026, Watson averaged 14.6 points per game, 4.9 rebounds, and 2.1 assists. Watson became a player who drew a lot of attention and gave hope to many regarding the Nuggets' future. 

The conversation surrounding Watson now isn't so much about whether or not the Nuggets will bring him back, but how much they'll be willing to pay him to do so. Watson and his camp have a lot of leverage in negotiations. 

Denver is dealing with some salary cap issues, and there have been rumors of them letting Christian Braun go via trade. This could mean Watson gets a bigger role in 2026, and with his young age, he could be rewarded a bigger deal. 

While Watson may deserve a big contract since his situation is in his favor, the Nuggets need to make sure they aren't signing him to any sort of lucrative deal. Watson is a talented player, but this is still a player who played in just 54 games this season. 

Considering where he is at this point in his career, a three-to four-year deal worth 20 to 25 million dollars a year sounds reasonable. With that being said, this type of contract sets expectations for Watson. 

The Nuggets were without him throughout the entire 2026 playoffs, and they played a Timberwolves team in the first round that had multiple injuries in the backcourt. Having talented young players gives teams a big advantage in the postseason, and it's time for Denver to realize what it has with Watson. 

The Nuggets are at a point where they're looking to get back in the championship picture, and if Watson can emerge as a top player on the roster moving forward, they can get back in that position.