The Peyton Watson decision may be the part Nuggets fans are watching closest, but keeping him could still trigger a move nobody wants to see.
That was the warning from Marc Stein on Monday’s DNVR Sports podcast, where he laid out the financial bind Denver could face if Watson returns on a new deal instead of his $6.5 million qualifying offer. In Stein’s view, that kind of outcome would push the Nuggets into second-apron territory unless they find another way to cut salary.
"If they keep Watson, they're going to be a second-apron team, or they're going to make another unpopular move to shed salary unless there's a way to trade Zeke Nnaji somewhere and attach draft capital to him."
That’s the reality hanging over Denver’s offseason. The second-tax apron comes with a pile of restrictions, and it’s not a place teams usually want to live.
The Kroenkes probably don’t want to be there either. Stein suggested the Nuggets could still get out of it through a trade, but nobody knows exactly how that would unfold.
What he does believe is that if Watson stays, some kind of “unpopular” move is likely to follow. He didn’t name a certainty, but Aaron Gordon’s name came up during the conversation. Stein said interest in Gordon has cooled since the start of the offseason, though that doesn’t close the door on a deal.
That possibility has been sitting in the background since Denver’s season ended in the first round of the 2026 playoffs. At that point, Josh Kroenke said that "everything" was on the table for the Nuggets, with Nikola Jokić the only obvious exception. That comment was enough to make fans brace for almost anything, including a move involving Gordon or maybe even Jamal Murray.
More than two months later, the message still applies. A trade could still come before the season begins.
Zeke Nnaji is the cleaner candidate on paper. Moving him would clear the $7.5 million he’s set to make this season and the $7.5 million player option for 2027-28.
It still wouldn’t fully get Denver out of the second apron, but it would help. The catch, as Stein noted, is that such a move would probably require draft capital, and the Nuggets don’t have much of that to spare.
The more painful option is Gordon. He’d help Denver’s books more than Nnaji, and he remains under contract for three more seasons, including his $37 million player option in 2028-29. But he’s also one of the most difficult players for the franchise to imagine moving.
Trading Gordon would land hard for obvious reasons. He’s been a major part of the organization and the city since arriving in 2021, and he remains tied to the 2023 title team. On top of that, he still has the kind of ability that can help Denver chase another one.
The downside is hard to ignore, though. His injuries over the last couple of seasons are a real concern, and his contract could make teams hesitate.
Even so, there may still be clubs willing to talk themselves into him. When he’s healthy, he’s a two-way force.
Cam Johnson is another name to keep in mind. According to HoopsHype’s Michael Scotto in late July, Denver "rebuffed" calls from teams hoping the Nuggets would "dump" Johnson’s contract. He has one year left on his deal and is set to make $23 million next season, which is less than Gordon’s $32 million.
That doesn’t mean Johnson is untouchable. It just suggests the Nuggets have not been eager to move him just to dodge the second apron.
So the Watson situation isn’t really isolated. Whether he stays or not, Denver may still have to make a choice that leaves somebody unhappy. The only alternative is paying the luxury tax and accepting the second-apron consequences, and that doesn’t sound like the route anyone should expect.
The offseason may have gone quiet for a while, but that doesn’t mean the uncomfortable part is over.
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Cavaliers Could Reshape Their Wing Rotation With One Risky Move
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Watsons camp is believed to be aiming well above the offers that have come his way, which is part of what makes this a tricky negotiation for both sides. Cleveland has also been linked to a framework involving Max Strus and draft compensation, but the real question is whether the sides can bridge the gap without either team backing away from a move that could reshape its wing rotation. [Read more 🡒]