The Nuggets are looking for at least one first-round pick and one notable player in a sign-and-trade for Peyton Watson, but the four teams reported to be most actively pursuing the restricted free agent haven’t been willing to part with a first-rounder so far, league sources tell Michael Scotto of HoopsHype.

Scotto states that the Bucks, Cavaliers, Hawks and Clippers have been reluctant to meet that price, but he hears that Milwaukee would be willing to take on Zeke Nnaji‘s contract as part of a trade. Nnaji will make $7.5MM during the upcoming season and holds a player option for the same amount in 2027/28.

Sources tell Scotto that the Cavs recently called Denver to express their interest in a potential Watson sign-and-trade. He adds that they also remain in the mix for a sign-and-trade deal with Atlanta involving Jonathan Kuminga.

Scotto notes that the Cavs are willing to part with the expiring contracts of small forward Max Strus ($16.66MM) and point guard Dennis Schröder ($14.81MM) in either deal. Cleveland also has a 2031 first-round pick to offer and can swap first-rounders in 2030 and 2032.

Scotto describes the Hawks’ and Clippers’ interest in Watson as currently more “exploratory” than “substantive.”

Little progress has been made on Watson negotiations since he entered free agency a month ago, but Denver still has an interest in keeping him, according to Scotto. Watson has also indicated that he may be willing to accept the team’s $6.5MM qualifying offer and become an unrestricted free agent next summer.