The Denver Nuggets made a significant decision not to extend a contract for Peyton Watson before the October deadline, opting instead to finalize a five-year, $125 million deal for teammate Christian Braun. This move has sparked discussion about Watson’s future with the team, especially as the Nuggets aim to navigate the challenging dynamics of the salary cap and luxury tax.
Watson himself revealed to The Denver Post that one reason for the stalling of his contract negotiations was the team’s desire to stay clear of the second luxury tax apron. With Watson becoming eligible for restricted free agency next summer, any attempts by the Nuggets to retain him could complicate their financial situation even further.
His performance during the current season has certainly caught the attention of fans and analysts alike. Watson is averaging a career-high 10.3 points, 5.1 rebounds, 1.7 assists, and 0.9 steals per game in 27.2 minutes over 23 games played, with a shooting accuracy of 49.2% from the field and 37.5% from beyond the arc. His improvements were a major talking point during media day and training camp, and many, including Ben Tenzer, expressed hope that both Watson and Braun would remain integral members of the Nuggets for years to come. However, the Collective Bargaining Agreement complicates such long-term plans.
Currently, the Nuggets sit $2.85 million below the first tax apron and $14.7 million below the second. Projections for the next season indicate that Denver could be just $1.25 million below the second apron, a figure that could significantly change with a potential Watson extension. Without a doubt, his salary for next season won’t be any less than this.
Key contracts dominate the Nuggets’ payroll, with Nikola Jokić, Jamal Murray, and Aaron Gordon leading the financial commitments. With Cam Johnson’s $23 million deal also set to expire after the 2026-27 season, there may be room for future negotiations.
Interestingly, Watson has switched his representation to Klutch Sports, known for securing lucrative deals for its clients, which suggests that his next contract could command a substantial salary. The expectation is that the Nuggets will provide Watson a qualifying offer, allowing them to match any outside offers. However, if they are to continue avoiding the costly second luxury tax apron, it may lead Watson to seek opportunities with other teams.
The fallout from the decision not to extend Watson’s contract looms large, with fans now recognizing that the 2025-26 season could very well be his final one in a Nuggets uniform. As discussions surrounding player contracts and team finances intensify, the future remains uncertain, yet there remains hope that strategic moves could benefit both Watson and the Nuggets in the long run.