As it stands, the Denver Nuggets are one of few teams that are projected to sit above the second apron heading into next season and that creates a big issue for Denver's plans for the rest of the offseason. 

While the Nuggets haven't made any major moves this offseason that propelled them over the second apron, the contracts that they already had on the books, especially the contracts of Nikola Jokic, Jamal Murray and Aaron Gordon, put them in a difficult spot when it comes to their cap table. 

On top of those three contracts, which account for over 55% of the Nuggets total payroll for next season, they also have the pricey contracts of Cameron Johnson and Christian Braun, which combine for close to $45 million next season, weighing them down. 

With all of these major contracts on the books, the Nuggets were always going to be limited in how many deals they were going to be able to make and despite only adding a handful of relatively small contracts to the payroll, the Nuggets are still $2 million over the second apron without even making what would be their most important move of the offseason.

Since the season ended, the Nuggets have been adamant that Peyton Watson was going to be their top-priority free agent. Watson is yet unsigned, by the Nuggets or any other team, but the kind of contract that he's reportedly interested in would be a big issue for the Nuggets' financial situation. 

Watson and his camp are reportedly looking for a contract that could go up to $30 million, and they've specifically used Braun's contract as a reference point for the annual value they're looking for. 

This is a big issue for the Nuggets, and if they're truly invested in signing Watson, they might need to shed some salary by trading a currently rostered player, but it could be a heavy sacrifice to do so.

“If [the Nuggets] keep Peyton Watson, there’s probably going to be a trade— I’m gonna go out on a limb and say it’s probably going to be a trade that the DNVR Nuggets show does not approve of," Marc Stein wrote on The Stein Line (via APHoops on X). 

Jokic and Murray are obviously off the table and while Braun would be the likeliest trade candidate with the most expensive years of his contract yet to come, a 2025-26 season full of injuries and low performance has effectively tanked his value. 

That leaves Gordon and Johnson as the last remaining viable candidates, but trading either of those two would be a move that would lead the Nuggets' fanbase into an uproar. 

Gordon, affectionately named "Mr. Nugget," had an injury prone season himself, but he still has the physical value and reputation that makes him a viable trade candidate and with the most expensive contract on the team beyond Jokic and Murray, moving him would clear up space for the Nuggets to sign Watson and likely stay under the second apron. 

But Gordon is the lifeblood of the Nuggets and has been for the last six seasons since he joined the team. Trading him would be a major culture shift and a heartbreaker for the franchise, one that retaining Watson might not fix. 

Trading Johnson would also sting, but far less than trading Gordon would. The Nuggets would likely remain in the second apron by trading Johnson and adding Watson, but the impact wouldn't be nearly as severe. 

Watson would also likely slot in as the new starting forward with Johnson gone, which would be a more natural transition than shedding their starting power forward in Gordon. 

Nuggets fans would still likely be sad to see Johnson go, but given the Nuggets' current situation, moving Johnson would be the most viable and effective thing they could do to bring in Watson.