Nuggets Face Tough Free Agency Call After Peyton Watsons Breakout Season

As the Nuggets grapple with tight finances and rising talent costs, the Lakers are poised to pounce on a key Denver contributor who may soon be out of reach.

Peyton Watson’s Breakout Season Could Price Him Out of Denver - and Into the Lakers’ Plans

Peyton Watson has done exactly what every young player in the NBA dreams of: he’s played his way into a major payday. The only problem? That kind of leap can make it tough to stay put - especially when “put” is a Denver Nuggets team already staring down a bloated payroll.

Watson’s breakout campaign has put him firmly on the radar of teams looking to add versatile, high-upside wings. And one of those teams - the Los Angeles Lakers - just might be in the perfect position to pounce.

Let’s break it down.

Denver’s Cap Crunch Is Real

The Nuggets are heading into the 2026 offseason with five players already locked into deals north of $20 million. Nikola Jokić ($59M), Jamal Murray ($50M), Aaron Gordon ($32M), Cameron Johnson ($23M), and Christian Braun ($22M) are set to eat up a significant chunk of the cap sheet. That leaves very little wiggle room, especially for a team operating in the luxury tax zone.

Christian Braun’s extension, in particular, is starting to raise eyebrows. He’s seen a noticeable dip in production this season - 9.7 points per game on 47/25/76 shooting splits - and that’s not exactly the kind of 3-and-D efficiency you want to be paying $22 million for. Whether that deal turns into a long-term headache remains to be seen, but it certainly complicates Denver’s ability to bring back Watson without some serious maneuvering.

The Lakers Are Watching - And Waiting

Enter the Lakers. According to ESPN’s Kevin Pelton, Los Angeles could be in a position to take advantage of Denver’s financial squeeze. Watson, a native of the L.A. area and a former UCLA standout, checks a lot of boxes for what the Lakers need around Luka Dončić - assuming the front office can build the right supporting cast around their new superstar centerpiece.

Restricted free agency is always tricky, especially for a team like the Lakers that can’t afford to wait out the matching period. But a sign-and-trade could be a realistic path, particularly given Denver’s cap situation. If the Nuggets decide they can’t match a competitive offer, they may be more inclined to get something back rather than lose Watson for nothing.

And from the Lakers’ perspective? This is the kind of move that could add real value on both ends of the floor.

Watson’s Breakout Year: More Than Just a Hot Streak

Watson isn’t just having a good year - he’s having the year. The 6-foot-8 forward has emerged as a legitimate two-way threat.

His length and athleticism make him a disruptive defender, and he’s finally found consistency on the offensive end, particularly from deep. He’s shooting a career-best 41.7% from three on 3.7 attempts per game - a major step forward in a league that demands spacing.

And that’s just one piece of the puzzle. Watson is setting personal bests across multiple categories, showing improved decision-making, better off-ball movement, and the kind of defensive versatility that makes coaches drool. He’s the type of player who doesn’t need the ball in his hands to make an impact, which makes him an ideal complement to a high-usage star like Dončić.

What Comes Next?

For Denver, the math is getting harder by the day. Unless they can shed one of their big contracts or pull off a creative cap-saving move, re-signing Watson could be a luxury they simply can’t afford. And for a team trying to keep its championship window open while navigating the second apron of the luxury tax, tough decisions are part of the deal.

Meanwhile, Rob Pelinka and the Lakers front office have to be watching this situation closely. Watson fits the mold of the modern NBA wing - long, switchable, and efficient.

He’s young, he’s improving, and he has ties to the city. If the Nuggets can’t make the numbers work, the Lakers might just be ready to welcome him home.

Bottom line: Peyton Watson has earned himself a big summer. Whether that next chapter is written in Denver or Los Angeles remains to be seen - but don’t be surprised if the purple and gold are at the front of the line.