The Denver Nuggets face a pivotal decision this offseason regarding one of their most promising young talents, forward Peyton Watson. Now in the final year of his rookie contract and headed for restricted free agency, Watson has emerged as a breakout star, forcing Denver to seriously evaluate how to keep him long-term.
According to NBA insider Michael Scotto, the Nuggets are determined to retain the 23-year-old.
“Peyton Watson is going to be one of the top restricted free agents. A young guy who has really burst onto the scene, having a career year,” Scotto reported this week. “I’ve had plenty of conversations with Denver throughout the season. They want to keep this guy.”
Scotto added that Watson is “going to be their guy that they are going to want to lock up for sure — a younger guy on the rise that’s going to get paid big bucks this summer.”
Watson has been one of Denver’s biggest success stories in the 2025-26 season. In 54 games (40 starts), he is averaging career-highs of 14.6 points, 4.9 rebounds, 2.1 assists, and 1.1 blocks per game while playing 29.6 minutes per night. He is shooting an impressive 49.1% from the field and 41.1% from three-point range on 3.6 attempts per game.
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Originally drafted 30th overall by the Oklahoma City Thunder out of UCLA in 2022, Watson’s rights were traded to the Nuggets in exchange for JaMychal Green and a protected 2027 first-round pick. Denver signed him to a four-year, $11.2 million rookie deal. He is currently playing on a $4.3 million player option for the 2025-26 season.
With his strong performance, Watson is expected to command a significant raise starting in the 2026-27 season — whether he stays in Denver or signs elsewhere. The Nuggets have already rebuffed trade interest in Watson, signaling their commitment to building around him alongside Nikola Jokić and the core group.
However, re-signing Watson to a lucrative new contract may require Denver to make difficult roster and salary-cap decisions, including potentially moving other pieces to create financial flexibility.