The Nuggets’ offseason math keeps getting tighter, and Peyton Watson may end up being the piece that forces Denver into a difficult move.
After the team re-signed Spencer Jones to a two-year, $12 million deal, Denver moved into the second apron. If restricted free agent Watson comes back too, the pressure only increases. As Marc Stein put it on the DNVR Nuggets Podcast, “If they keep Watson, they're either going to be a second apron team, or they're going to have to make another very unpopular move to shed salary.”
That leaves the Nuggets staring at a trade deadline problem that could shape the rest of the season. Denver has until February’s trade deadline to get below the second apron and reduce its luxury tax bill, and if Watson is re-signed, the front office may need to act. The names most likely to come up are Zeke Nnaji, Aaron Gordon, and Cameron Johnson.
Nnaji is the cleanest answer on paper, even if it is the hardest one to actually pull off. Stein said, “Their preferred scenario would be finding a trade home for Zeke Nnaji, but you know if you do that you’re attaching draft capital and the Nuggets are not exactly teeming with extra draft capital.”
Nnaji still has two years left on his deal, with a second-year player option, and the total is nearly $15 million. Denver has been trying to move off that contract since the four-year, $32 million extension was handed out, but so far nothing has worked.
And even if the Nuggets found a way to dump Nnaji’s salary, that move alone would not be enough to get them below the second apron if Watson returns at a fair price.
Then there’s Gordon, a far more painful possibility. Losing Aaron “Mr.
Nugget” Gordon would hit the roster hard, since he sits behind only Nikola Jokic and Jamal Murray in importance for Denver. His three-year, $103.6 million extension begins this season, and moving him would not be simple because the Nuggets would have to take salary back in any deal.
There’s also the question of how other teams would value him after an injury-plagued 2025-26 campaign. Still, if Denver re-signs Watson and is buried under a historic tax bill, Gordon would have to be part of the conversation.
The most obvious trade chip has been Cameron Johnson, and he remains the easiest path if the Nuggets decide they need relief. Johnson is on an expiring contract worth about $23 million, which makes him a natural target for other teams.
Rival clubs also know Denver’s financial bind, and that has reportedly reduced the urgency around making a deal, even with trade talks turning away from the 30-year-old sharpshooter. Still, if the Nuggets want to keep Watson and trim salary, moving Johnson would likely do the least damage to their title chances, even if it means giving up a valuable floor-spacer.
None of this means Denver has to rush. But if Watson signs back, the pressure will be there, and the clock will be ticking until the Nuggets finally make a move.
In Other News...
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The Nuggets have already done some of their offseason housekeeping, but one decision still hangs over camp: what the backcourt is going to look like once the roster is finalized. Denver is sitting on 13 players with traditional contracts after bringing in Lonnie Walker on a training camp deal, leaving just one clear spot to fill as the team sorts through its guard depth and overall rotation fit.
Peyton Watsons restricted free agency remains the bigger unresolved piece, and his status could shape the rest of the puzzle if Denver decides his future needs to be handled as part of a larger move. Beyond that, the club still has to choose whether to use the final opening on a familiar face or another steady option, with Bruce Brown, Aaron Holiday and even a Russell Westbrook reunion all part of the conversation as the Nuggets weigh their next step. [Read more 🡒]
Nuggets Camp Battle Could Start With One Overlooked Roster Question
The Nuggets are among the 14 NBA teams still carrying at least one open two-way slot, and that makes a small roster wrinkle worth watching as camp approaches. Two-way contracts may not grab headlines the way a rotation battle does, but they can be a useful lever for teams trying to balance development, depth and flexibility over the course of a long season.
For Denver, the question is not just who fills that spot, but how the front office wants to use it under the leagues 2026/27 rules and salary structure. Some expected two-way signings around the league are still tied to roster moves or player decisions, and Exhibit 10 deals can also be converted for eligible players, so the Nuggets have a little room to maneuver before the picture fully clears. [Read more 🡒]