The Nuggets have been clear in their desire to upgrade the roster around Nikola Jokic this summer, despite their limited resources. So far, their moves have been minor, re-signing Tyus Jones while adding backup big man Marvin Bagley III, as they await the restricted free agency outcome of breakout forward Peyton Watson.

While the team has signaled its intention to match any offer sheet given to Watson, it appears they’re now willing to consider sign-and-trade scenarios, perhaps due to the gap in negotiations between the two parties, Sam Amick reports for The Athletic. Watson is reportedly seeking $25MM or more per year on his next deal, while the Nuggets have been rumored to want to get below the second apron.

The league recently saw the Jazz prefer to recoup significant assets in a sign-and-trade for center Walker Kessler rather than match the salary that the Lakers could offer, in a situation that could have parallels to the ongoing Watson discussions.

Only the Nets and Clippers have the salary space to pursue Watson, with the Clippers previously having rumored interest in adding the versatile wing. The Nuggets are also expected to pursue a run at free agent LeBron James, who would form a compelling duo with Jokic as two of the smartest playmakers in the league.

It’s unclear how, or if, the fact that both James and Watson are represented by Rich Paul and Klutch Sports could factor into any such negotiations.

The Nuggets would still prefer to retain Watson rather than lose him even in a trade, Amick notes. Watson was a strong candidate to win Most Improved Player last season before injuries derailed him, as he stepped into a larger role with Aaron Gordon injured and averaged 17.3 points and 5.3 rebounds in 40 games as a starter.