Nuggets forward Peyton Watson is hoping to top $25MM in average annual value in his next contract, sources tell Marc Stein and Jake Fischer of The Stein Line (subscription required). The restricted free agent is asking for a higher salary than Denver gave to Christian Braun in his rookie scale extension last fall.

Watson’s chances of reaching that figure will be affected by a free agency market that has already been somewhat depleted. The teams with enough cap space to make that kind of offer have largely used it on other players, and the Nuggets don’t appear willing to consider a sign-and-trade for a 23-year-old rotation player who is viewed as part of the future.

Watson’s cap hold is manageable at $13.1MM, so the Nuggets can let him explore free agency without affecting their ability to make other moves. He ranks seventh overall on our list of 2026’s top 50 free agents and is fourth among those remaining on the market.

There’s more on the Nuggets:

• Denver has been operating lately like a team that’s willing to enter the season in second apron territory if that’s what it takes to keep Watson and fellow RFA Spencer Jones, Stein and Fischer observe. They hear that backup center Jonas Valanciunas and reserve power forward Zeke Nnaji are the team’s only players who’ve been involved in recent trade rumors. Valanciunas, who has just a $2MM guarantee on his $10MM salary for next season if he’s waived by July 8, is considered to be a possible target for the Lakers in the wake of their agreement to trade Deandre Ayton to Washington. The Nuggets are reportedly welcoming L.A.’s interest in Valanciunas after searching for a taker since their season ended. Stein and Fischer report that they tried to package him with the 26th pick in this year’s draft before ultimately sending it to San Antonio in exchange for No. 35 and two future second-rounders. Nnaji, who’s been on the trade market for some time, will make $7.5MM next season and has the same amount as a player option for 2027/28.
• Sources tell Stein and Fischer that Denver has turned down multiple trade offers involving Cameron Johnson, whose expiring $23MM contract was projected to be expendable in an effort to clear out salary before re-signing Watson and Jones. The authors also note that rival teams were expecting the Nuggets to try to trade Braun, but his value was lowered by his injury-filled season and the fact that his extension is just about to take effect.
• In separate articles, Troy Renck of The Denver Post and Woody Paige of the Denver Gazette (subscriptions required) advocate an aggressive recruiting strategy to bring LeBron James to the Nuggets, leaning on his long friendship with the Kroenke family to make it happen.