Peyton Watson wanted to sign contract extension with Nuggets, but now he can ‘set his market’ in restricted free agency

Peyton Watson’s home-opener highlight was indicative of an aspect of his game that has gradually matured. Playing pick-and-roll with Jamal Murray, he was neglected by two Phoenix Suns defenders for just long enough that neither could recover to him by the time Murray fired him a quick pass. “I just saw the lane open up, and nobody (was there) to stop me by the time I got to the restricted area,” Watson said. “I knew at that point I was gonna try to dunk it.” That he did, welcoming Suns rookie Khaman Maluach to the league with a one-handed poster as the 7-footer tried to rotate over. Watson stuck the landing and flexed. Ball Arena approved. The Nuggets were on their way to 62 paint points and a 133-111 win over Phoenix. But Nuggets coach David Adelman was focused on the big picture afterward. “Peyton’s activity tonight was great. He screened well. He got on the rim,” Adelman said. “Everyone’s gonna talk about his dunk, which was a highlight play, but he had multiple times when he explored the paint with a roll, and that allows you to produce offense behind it.” Watson has been assigned to a variety of spots on the floor over the last three years, as the Nuggets have tried to figure out exactly what they have in the athletic young wing. The dunker spot. The corner. The point to initiate offense. The paint as a roller. Those experiences add up to a useful player, but not a master of any one role. Which left Watson and the Nuggets at a contractual impasse last week. That means Watson will be a restricted free agent next offseason after not agreeing to a rookie-scale extension before the preseason deadline for 2022 first-round draft picks to sign. “From what I understand, it was just a financial business decision (for the Nuggets). Obviously, with the new CBA and the second apron, things of that nature, they wanted to stay out of that,” Watson told The Denver Post. “As a business, you’ve gotta operate (based on) what’s best for your business. And when it comes time for me to make my decision next summer, I’ve gotta operate as a business myself. “That’s no diss to the Nuggets. That’s no diss to the Kroenkes. They’ve showed me a lot of love, a lot of hospitality, and they’ve done a lot for me. They gave me a chance in this league, to prove that I’m gonna be here for a while. So I think everything will work itself out.” Restricted free agency is traditionally a process that limits a player’s autonomy. After the Nuggets extend a qualifying offer in all likelihood, Watson’s path to joining a new team will require him to sign an offer sheet, the terms of which Denver has the opportunity to match. But in this case, the Nuggets might not have enough room on their books for Watson next summer, if avoiding the second apron remains a guiding principle for team ownership. That threshold is projected to be around $223 million for the 2026-27 league year. And after signing Christian Braun to a five-year, $125 million rookie extension before the deadline last Monday, Denver is already up against it — with 11 roster spots penciled in and four spots vacant. Offering Watson anything more than about $7 million annually after the Braun extension would’ve put the Nuggets in second-apron territory. So, no deal. And possibly no deal next summer, either. Even if Denver clears out $10 million in cap space in the form of Jonas Valanciunas’ non-guaranteed salary, will there be enough room for the front office to both negotiate a new deal that pays Watson market value and fill out the rest of the roster? That question is unanswerable until after this season — Watson’s fourth in the league. He’ll have to earn a payday on the court. “Peyton has a chance here,” Adelman said. “If he has a great year, he can put himself where he wants to. That’s what our league is about. You prove it every day. You prove it every year. And eventually, if you work hard and you do the right things, you’ll benefit. Peyton’s been great. He had a really good preseason. And everybody has their time. So he can set his market, and I think he will.” That point broaches the elephant in the room: If the Kroenke family is unwilling to spend into the second apron, doesn’t that mean the unfortunate reality is that Watson’s ideal outcome now is to play himself out of their price range and sign with a new team? “It’s so far away for me to able to even tell you, dog,” he told The Post. “Obviously, we have ideas and scenarios, and things go a million different ways. But you can never expect too much. You’ve just gotta go in there, put in your work, and it’s not over until the fat lady sings.” Related Articles Nuggets Journal: My Denver media brethren and I lost by 98 to Nuggets coaches in pickup game Ball Arena ups its food game for 2025-26 Nuggets, Avs seasons with Redeemer Pizza, Nola Jane Nuggets set G League plan for DaRon Holmes II to ‘build confidence’ after Achilles injury Renck & File: Why Cam Johnson needs to assert fit in Nuggets offense Aaron Gordon didn’t want game ball after Nuggets lost season opener despite his 50-piece Watson has publicly expressed his desire to stay in Denver. He has close friends on the roster and an increased basketball role waiting to be seized under Adelman. He was optimistic about getting an extension done when training camp began. But the Nuggets were balancing his negotiation with Braun’s. In the end, one of two extensions got done. That leaves Watson entering the season with uncertainty ahead. “It’s never a comfortable feeling,” he said. “But that’s the game of basketball. That’s the NBA. You can never get too comfortable because that’s when things start to go south for you. .. Regardless of if things go my way or they don’t, I’m always going to go out there and leave my heart on the floor. Obviously, I’m a little disappointed because I love being a Nugget. I love the city of Denver. I love the fans. I love my teammates. But this is just going to add fuel to my fire, and I’m gonna get better from it.” Want more Nuggets news? Sign up for the Nuggets Insider to get all our NBA analysis.